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TMI Blog2021 (4) TMI 1345X X X X Extracts X X X X X X X X Extracts X X X X ..... hs of defects liability period. M/s. Tokyo Electric Power Company, Holdings Inc. (TEPCO) has agreed to provide consultancy services in relation to M/s. Odisha Power Transmission Corporation Limited("OPTCL") in pursuance of the agreement dt 13.04.2018. 1.2. M/s. TEPCO will perform following activities as enumerated in the agreement;- (a) Technology transfer for the outdoor GIS Operation and Maintenance, (b) GIS Operation and Maintenance manual operation from the point of power utility company's view. 1.3. M/s. TEPCO will perform all the activities enumerated in the Agreement from Japan(i.e. non-taxable territory) except the physical inspection/review of the project facility & demonstration of O&M procedures. 2.0. M/s. Tokyo Electric Power Company, Holding Inc., the Applicant have filed an application on dt.03.07.2020 for Advance Ruling under Section 97(1) of CGST Act, 2017 and Section 97 of the OGST Act, 2017 sought for a ruling as to whether the Applicant is required to be registered under Odisha Goods and Services Act, 2017 and Central Goods and Services Act, 2017 for the consultancy services to be provided to M/s. Odisha Power Transmission Corporation Limited. 2.1. Af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rity for Advance Ruling, Odisha to consider for,- (i) set aside the impugned order; (ii) modify the impugned order in the light of given facts; (iii) grant personal hearing(s); (iv) grant an opportunity to confront with all the findings / objections and be given reasonable opportunity of being heard in regard to the same before deciding this appeal; and (v) pass any such further or other order (s) as may be deemed fit and proper in facts and circumstances of the case. PERSONAL HEARING: 4.0. The Applicant was offered Personal Hearing on dt. 19.02.2021 at 12.00 hrs. Mr. Ankit Bhardwaj, C.A., authorized representative of M/s. TEPCO has attended the personal hearing through Video Conference. During the personal hearing, the Chartered Accountant has reiterated the submission already made in their appeal application dt.06.01.2021 and their rejoinder on dt.08.02.2021. Mr. Ankit Bhardwaj prayed the Appellate Authority during personal hearing to consider their grounds of appeal & decide the case favourably. DISCUSSSION AND FINDINGS: 5.0. The Applicant M/s.Tokyo Electric Power Company (TEPCO) has forwarded the application duly filled in Form GST ARA-02 on dated 06.01.2021, whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid only through Indian banks. Accordingly, the Applicant has to arrange the payment of the application fees by complying with various bank formalities, (iv) On account of aforesaid reasons(i.e. COVID-19 pandemic relates difficulties, geographical complexities and banking formalities), the Applicant is filing this appeal with delay of not exceeding thirty days and within the extended time limit prescribed under proviso to sub-section 2 of Section 100 of CGST/SGST Act. 6.1. On going through the reasons submitted by the Applicant, we are satisfied that the delay happened due to the practical difficulties faced by the Applicant on account of restrictions prevailed during that time and outbreak of COVID-19 pandemic. Therefore, we condoned the delay of six days as empowered under proviso to sub-section 2 of Section 100 of CGST/SGST Act, 2017. 7.0. On going through the contract dt. 13.04.2018 and other supporting documents, it is observed that the Applicant M/s.Tokyo Electric Power Company(TEPCO) will perform the following activities as enumerated in contract agreement;- (i) * Technology transfer for the outdoor GIS Operation and Maintenance * GIS Operation and Maintenance ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... training for one week in Japan under M/s. Tokyo Electric Power Company (TEPCO) and other services as mentioned in contract upto march, 2021.The services which are rendered by M/s. TEPCO, was carried out in Japan. 7.3. The Applicant in his grounds of appeal has submitted that in terms of sub-section 2 of Section 103 of the CGST Act/SGST Act, where the facts or circumstances supporting the original ruling of Authority for Advance Ruling have changed the said Advance Ruling shall be ceased to be binding. In this regard, the provision of sub-section 2 of Section 103 of the CGST Act/SGST Act is reproduced below:- "The advance ruling referred to in sub-section (1) shall be binding unless the law, facts or circumstances supporting the original advance ruling have changed". 7.4. The Advance Ruling Authority has made the advance ruling based on the facts that the Applicant will use the office premises of OPTCL for rendering the consultancy service in India. This situation does not arise as the contract has been terminated. Whatever service has been rendered by M/s. Tokyo Electric Power Company (TEPCO) are executed from Japan. Now it is clear that the fact and circumstances based upon wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, the Sub-consultants and the Experts the Goods and Service Tax(GST) and other impositions, if any, under the applicable law in the Client's country. Further, the client shall deduct withholding tax, if any, under the applicable Law of India and deposit the same with the local tax authorities. The client will issue necessary Tax Deducted at Source(TDS) certificate against the withholding tax so deducted. In case the Client makes payment directly to TEPCO(Non-Resident Company in India) against their part of services rendered in India, Goods and Service Tax(GST) as applicable shall be applied under Reverse Charge Mechanism of GST Law in India". ORDER As the facts and circumstances changed as discussed under para 7 above, we are in view that the ruling made by the Authority for Advance Ruling, Odisha vide order No.02/Odisha-AAR/2020-21 dated 01.10.2020, is not legal & proper as per law. The Applicant M/s. TEPCO is not required to take registration. The tax liability of the services already rendered by M/s. TEPCO lies on the recipient of service (M/s. OPTCL) on reverse charge basis in terms of Entry Sl.No. 1 of Notification No. 10/2017-Integrated Tax (Rate) dated 28.06.2017.< ..... X X X X Extracts X X X X X X X X Extracts X X X X
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