Order to Be Set Aside Since Factual and Legal Contentions Had Not Been Addressed Correctly | HC
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Case Details: Xiaomi Technology India Private Limited v. State of Karnataka - [2024] 167 taxmann.com 142 (Karnataka)
Judiciary and Counsel Details
- S.R.Krishna Kumar, J.
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G. Shivadass, Sr. Counsel, Syed Peeran & Ms Meghana Lal, Advs. for the Petitioner.
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Hema Kumar, AGA & Vikram Huilgol, Sr. Counsel for the Respondent.
Facts of the Case
The petitioner filed multiple refund claim applications under GST. These claims were rejected by the Appellate Authority, and the petitioner filed a writ petition. The petitioner argued that the services it provided to Xiaomi Hong Kong under a Reward Agreement qualified as ‘export of services’ under the Integrated Goods and Services Tax (IGST) Act, 2017. They contended that the monetary rewards they received were for promoting Xiaomi products in India, which increased Xiaomi’s market share and sales, thus fulfilling the requirements for the export of services. They also claimed a refund of accumulated Input Tax Credit (ITC).
The Appellate Authority dismissed the petitioner’s appeals, stating that the monetary rewards were incidental to achieving sales targets and did not constitute consideration for the export of services. The services rendered were considered to be provided in India, and thus, the place of supply was determined to be within India, not outside, under Section 13(3)(a) of the IGST Act, 2017.
High Court Held
The High Court noted that the various factual and legal contentions raised by the petitioner and the Department were not properly addressed by the Appellate Authority.
Therefore, the Court set aside the orders passed by the Appellate Authority and remanded the matter back for reconsideration afresh, in accordance with the law, without expressing any opinion on the merits or demerits of the rival contentions. It directed the Appellate Authority to reconsider the appeals within a stipulated time frame and provide both parties a reasonable opportunity to present additional pleadings, documents, and circulars.
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