The Jaipur Bench of Rajasthan High Court in the case of M/s Barminco Indian Underground Mining Services LLP Versus Deputy Commissioner has dismissed writ petition challenging GST on mining services at the stage of show cause notice.
The bench of Chief Justice Manindra Mohan Shrivastava and Justice Uma Shanker Vyas has it is not a case where the authority concerned lacks jurisdiction. It is not a case where mala fides have been alleged. In the absence of there being a case of violation of principles of natural justice.
The petitioner/assessee approached the High Court by way of Writ Petition challenging the Show Cause Notice issued alleging that the expats payments made by the petitioner to its overseas employees being foreign nationals for providing the mechanized underground mining services is not chargeable to tax under the GST regime in view of provisions contained in Clause 1 of the Schedule III of the CGST Act.
On the other hand, the department has asserted that the petitioner company has imported the services from related person i.e. from its parent Australia based company and the same is chargeable to tax under section 5 of the IGST Act read with section 7(1)(b)&(c)) and Clause 4 of the Schedule I of the CGST Act. Expats payments made by the petitioner company are relevant under section 15 of the CGST Act for the valuation of the services so imported by the petitioner to enable it to provide its output services in taxable territory.
The court dismissed the writ petition with liberty to the petitioner to file a reply to show cause notice.
Case Details
Case Title: M/s Barminco Indian Underground Mining Services LLP Versus Deputy Commissioner
Case No.: D. B. Civil Writ Petition No. 17391/2024
Date: 03/12/2024
Counsel For Appellant: Shashi Mathew
Counsel For Respondent: Naresh Gupta, Advocate, Sr. Standing Counsel
