I. HIGH COURT
1 Linde Engineering India Pvt. Ltd. vs. Union of India
[2022 (57) GSTL 358 (Guj.)]
Date of order: 16th January, 2020
Services provided to foreign holding company would be qualified as export of service since foreign holding company outside India cannot be treated merely as an establishment of distinct person in accordance with item (b) Explanation 3 of Clause (44) of Section 65B of Finance Act, 1994
FACTSPetitioner, a private limited company, was engaged in providing consulting engineering services and works contract services to various entities located in and outside India, including its holding company Linde AG, Germany and had claimed the benefit of export of services. Audit objection was raised where it was questioned that Linde Group Companies would be treated as mere establishment of petitioner and the services rendered to them would not fall under ‘export of service’ under Rule 6A of Service Tax Rules and consequently, fall under ‘exempted service’ under Rule 2(e) of CENVAT Credit Rules, 2004. The petitioner submitted a satisfactory response with no further inquiry. Thereafter Show Cause Notice was issued for recovery of tax for the period 2012-13 to 2016-17. Being aggrieved by the aforesaid show cause notice, petitioner preferred a writ before Hon’ble High Court.
HELDIt was held that services rendered by an Indian subsidiary company to its foreign holding company in
