What Vodafone claimed
The Delhi HC earlier this year had issued a notice to the Finance Ministry and the others on Vodafone Idea’s plea seeking a refund of the integrated tax paid on international roaming and long-distance services provided to foreign telecom operators for their subscribers during their visit to India.
The company had claimed that its telecom services, which include International Inbound Roaming Services (IIR) and International Long Distance Services (ILD) provided to Foreign Telecom Operators (FTOs) subscribers during their visit to India, are in the nature of export of services within the meaning of the Integrated Goods & Services Tax Act, and such export is a zero-rated supply under the law.
What Delhi HC said
A Division Bench comprising Justice Vibhu Bakru and Amit Mahajan held that it is apparent that the provisions for ascertaining the place of supply of services under Rule 6A of the ST Rules are similar to Section 2(6) of the IGST Act inasmuch as the services will be treated as export of services when the provider of service is located in the taxable territory, the recipient of the service is located outside India, and the place of provision of the service is outside India.
The HC said it is not disputed that the Customs Excise and Service Tax Appellate Tribunal (CESTAT) has in several cases following the aforesaid decision, allowed the appeals preferred by the petitioner and directed the refund.
“The predecessor of the petitioner (Vodafone India Ltd.) had prevailed before the learned Customs Excise and Service Tax Appellate Tribunal on the question whether the services in question qualified for export services,” the judgment pointed out.
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