TMI Blog2020 (11) TMI 1036X X X X Extracts X X X X X X X X Extracts X X X X ..... service recipient is concerned only with the test-report, can have no bearing or relevance, once the statutory provision is clearly, plainly and unambiguously worded, as above and it is impermissible to expand the laid down criterion or to interpolate and insert words/phrases which are not used in such provisions. As the catena of decisions relied upon by the appellant relate to the service tax regime, it does not find statutory support in the GST era. The ratio of the said decisions does not apply to the factual matrix of the extant GST statute. Hence, the same do not support the case of the appellant. Whether appellant is liable to pay IGST on the supply of services? - HELD THAT:- Since the supplier of service is in Goa, India and place of supply of service as determined under Section 13(3)(a) of the CGST Act, 2017 is also in Goa, India, the same falls under Intra-State supply of services as per Section 8(2) of the IGST Act, 2017 whereby the provisions under Section 7(5)(c) claimed by the appellant would not be applicable. Consequently, the appellant is liable to pay CGST and SGST on the aforesaid supply of service, as held by the lower authority. The Ruling given by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant filed the present appeal before this Appellate Authority for Advance Ruling for GST, Goa. In their grounds of appeal, the appellant inter-alia, submitted the following: 4. That the impugned order was non-speaking in nature. The AAR has not appreciated the submissions of the appellant. The AAR has nowhere given any rationale for concluding that the activity does not qualify as export and that the transaction is intra-state supply and not an inter-state supply. 5. That the activity carried out by them qualifies as research and development (R D) activity. They receive the samples from overseas companies and I or the other facilities on which the research is carried out. Post the completion of testing, the goods either cease to exist or do not remain in the form in which they were handed over to them. The recipient of service is concerned only with the test report. Once it is concluded that the nature of their service is nothing but R D service then the place of supply would be outside India. 6. That the appellant carries out testing activity in India and shares the test report with the customer located outside India. Even if it is assumed that the activity carried ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing services carried out on samples/goods made available by service recipients are to be treated as 'zero rated supply of services' in terms of Section 16 of the IGST Act, 2017, has been answered by the lower Authority in the negative i.e, that these do not constitute 'zero-rated supply of services' i.e., export of services in terms of the said Section 16. 13.2. We find that the phrase 'zero rated supply' is defined in Section 16 of the IGST Act, 2017, as follows:- SECTION 16. Zero rated supply. - (1) zero rated supply means any of the following supplies of goods or services or both, namely (a) export of goods or services or both; or (b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit... . The phrase export of services appearing in the above text is defined in Section 2(6) of the IGST Act, 2017, as follows:- SECTION 2. Definitions.- In this Act, unless the context otherwise requires, - (6) export of services means the supply of any service when, - (i) the supplier of service is located in India; (ii) the recipient of service is located ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e find that the lower authority has duly considered and analysed the above definitions and statutory provisions and found that though the appellant satisfies the conditions (i), (ii), (iv) and (v) of the definition of 'export of services' vide Sec.2 (6) ibid., however the condition vide (iii) is not fulfilled by them. The Authority held that in terms of Section 13 (3) the place of supply of service is in Goa, India, since in the given factual situation, the samples/goods on which the testing service is to be performed by the appellant were made available by the service recipients, which squarely fits into the situation specified under the said Section 13 (3) only. Consequently, the 'place of supply of services' has to be the location where this services are actually performed, which again admittedly is in Goa. And therefore that the services do not fall within 'export of services' vide Sec. 2(6) of the IGST Act, 2017. 13.3. As against such considered finding in the Advance Ruling, we find that appellant except for contending that the impugned ruling was non-speaking in nature and that the AAR has not appreciated their submissions etc., have not provided a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15.1. The appellant cited certain case-laws with regard to the delivery of report to foreign customer being part-performance of services outside India; which were all rendered in the context of the earlier levy of Service Tax under Finance Act, 1994 read with Export of service Rules, 2005 and the specific wording therein. We find that the said case-taws were rendered in distinguishable set of facts circumstances as well as the applicable statutory provisions; and hence the same cannot have applicability herein, especially in view of the specific, plain and unambiguous wording in the GST-statute, supra. 15.2. As the catena of decisions relied upon by the appellant relate to the service tax regime, it does not find statutory support in the GST era. The ratio of the said decisions does not apply to the factual matrix of the extant GST statute. Hence, the same do not support the case of the appellant. 16. As regards the second issue involved i.e., whether appellant is liable to pay IGST on the aforesaid supply of services, we find that since the supplier of service is in Goa, India and place of supply of service as determined under Section 13(3)(a) of the CGST Act, 2017 is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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