The Delhi High Court issued the notice to the Government on a plea challenging Integrated Goods and Service Tax (IGST) on the amount received in convertible foreign exchange in the course of Export of Services outside India.
The petitioner M/s Koenig Solution Pvt. Ltd. challenged the constitutional validity under Section 2(6) of the Integrated Goods and Services Act, 2017 (IGST Act) regarding ‘export of services’.
Mr. J.K. Mittal, the counsel on behalf of the petitioner sought a declaration that the amount received in convertible foreign exchange from foreign companies or citizens for its both onshore and offshore activities are in the course of export of services out of the territory of India and not subject to levy of tax under IGST Act.
Section 2(6) of IGST Act is in respect of “export of services” means the supply of any service when, the supplier of service is located in India; the recipient of service is located outside India; the place of supply of service is outside India; the payment for such service has been received by the supplier of service in convertible foreign exchange or in Indian rupees wherever permitted by the Reserve Bank of India; and the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8.
The division bench of Justice Manmohan and Justice Naveen Chawla issued the notice to Mr. Asheesh Jain, Mr. Manas Bhatnagar, Mr. Satish Kumar and they prayed for and were permitted to file their counter-affidavits within four weeks.
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