 |
Deals & Matters |
 |
2 August 2024 |
Despite a circular issued by the CBIC regarding the scope of ‘intermediary services’ under the Service Tax and GST Regime, the Union of India continues to challenge decisions favoring the assessee before the Apex Court.
In one of the first appeals on the intermediary issue, the Chandigarh Bench of the Tribunal, in a final order dated February 27, 2018, clarified that an entity providing the main service on a principal-to-principal basis does not qualify as an ‘intermediary’ and its services constitute the export of services.
This decision was initially challenged before the High Court of Punjab & Haryana. On December 15, 2023, the High Court dismissed the appeal on grounds of non-maintainability, noting that the issue pertained to taxability, but allowed the Department to approach the Supreme Court.
Despite the CBIC’s recent circular clarifying the scope of ‘intermediary’ services, the Department filed a civil appeal before the Supreme Court nearly five years and eleven months after the Tribunal’s decision.
