Synopsis
The Delhi High Court has issued a notice to the Ministry of Finance and others on Vodafone Idea's petition seeking 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 Delhi High Court has issued a notice to the Ministry of Finance and others on Vodafone Idea's petition seeking 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.
A Division Bench comprising Justice Vibhu Bakru and Amit Mahajan issued the notice to the Finance ministry and the revenue authorities on Vodafone's plea claiming that its telecom services, including 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.
Challenging the rejection of its refund claim for export of its services, Vodafone said that under Section 16 (3), a registered person making zero rated supply is eligible to claim refund either by supply of goods under bond or letter of undertaking without payment of Integrated Goods & Services Tax or by supply of goods with payment of the tax and claim refund of such tax paid.
Counsel Vinita Bhargava told the court that Vodafone exported services on payment of integrated tax and claimed refund through various applications for four different time periods totalling Rs 7.12 crore.
However, both the assistant commissioner and the joint Commissioner of the central goods and services tax body rejected Vodafone's application for refund of integrated tax holding that the place of supply and consumption of services provided by it to the inbound roamers was in India and, therefore, the same cannot be considered as export of services. The rejection orders were challenged before the HC.
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