Rajasthan High Court Dismisses Petition Challenging GST Demand On Exhibition Services

The Jaipur Bench of the Rajasthan High Court has dismissed the petition challenging the GST demand on exhibition services.The bench of Justice Pankaj Bhandari and Justice Shubha Mehta did not find any reason to entertain the writ petition as the services received outside India are already taxable at the hands of the receiver of services, who is a registered person in taxable territory, i.e., India.The petitioner has assailed the order dated November 30, 2023, passed by the respondents-department to the extent of tax imposed on exhibition services received by the petitioner in non-taxable territory by the person located in non-taxable territory on an RCM basis. This order may kindly be quashed and set aside.The petitioner contended that Section 1 of the Central Goods and Services Tax Act, 2017 and Section 1 of the Integrated Goods and Services Tax Act, 2017 clearly mention that provisions of the Act shall extend to the whole of India. The services received outside India cannot be taxed in India, which is contrary to Section 1 of the IGST Act. The petitioner was dealing with jewellery, and he participated in an exhibition that took place outside India. Services received outside India cannot be taxed under the IGST in India.The department contended that the petitioner is liable to pay IGST for the very reason that Section 13 of the IGST Act provides for services received outside India, and sub-section 5 of Section 13 of the IGST Act includes fairs and exhibitions. A notification issued on June 28, 2017 by the Government of India under Section 5(3) of the IGST Act has not been challenged by the petitioner. As per sub-section (3) of Section 5 of the IGST Act, the government may, on the recommendations of the Council, by notification specify categories of supply of goods or services or both, the tax on which shall be paid on a reverse charge basis by the recipient of such goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. A notification dated June 28, 2017 has been issued in exercise of powers conferred under sub-section (3) of Section 5 of the IGST Act, which is not under challenge. Sub-section (5) of Section 13 of the IGST Act includes the places of supply of services. The court noted that the supply of services has taken place outside India, and as per the notification, the receiver of the service is the person who is registered in the taxable territory. The petitioner is a registered person who is located in the taxable territory. The petitioner is a registered person who is located in the taxable territory.The court, while dismissing the petition, held that the department has not committed any illegality, and the same cannot be challenged by way of writ jurisdiction as the petitioner has an alternate remedy available to him, which is by way of filing an appeal.Counsel For Petitioner: Dipti JindalCounsel For Respondent: Bharat VyasCase Title: M/s. Savio Jewellery Versus Commissioner, Central Goods And Service TaxCitation: 2024 LiveLaw (Raj) 89Case No.: D.B. Civil Writ Petition No. 1910/2024 Click Here To Read The Order

Rajasthan High Court Dismisses Petition Challenging GST Demand On Exhibition Services

Mariya Paliwala

Tags