Page 137 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] IN RE : LEAR INDIA ENGINEERING LLP 375
functioning of integrated software and its ompatibility with the hardware on
which it would be loaded. During the process of development of functional
software, post conceptualizing the software, i.e. after completion of writing of the
software codes, the Applicant does carry out the testing of the software to verify
the accuracy of software. The said testing is done in the computer system only,
without the help of any external hardware. Then the function specific software
developed in India is uploaded on the server of Lear upon successful testing
thereof. Similarly, other Lear entities which are assigned the task to develop
software in respect of other functions of ECU also carry out the development of
software which is allocated to them and the said patches of the software for other
functions are also uploaded on the common server of Lear.
The above said process of development of function specific software is
explained with the help of example hereinafter :
Example :
In case of developing software for an ECU, Applicant is assigned the task
to develop software pertaining to power window. Similarly, other Lear
locations are assigned the task of developing software for wiper, steer-
ing, audio system, auto lock, lighting, etc. The respective Lear locations
including the Applicant would upload the functional software devel-
oped by them on the common server within the defined timeline agreed.
Once the functional software developed by each Lear entities are up-
loaded on the Lear server, the said software is integrated together by the
overseas Lear entity which has placed order with other Lear entities.
Such integration of all the functional software is important to test their
performance and identify the problems if any faced in the interface be-
tween such functional software after integration. The integrated software
is thereafter uploaded on the Lear server which is downloaded by each
location who have developed the functional software. Thereafter, such
integrated software is loaded on a hardware i.e. ECU which is supplied
by overseas Lear entity, to carry out the testing of respective functional
software in the overall integrated software. Further, the purpose of send-
ing the common hardware to all the Lear locations is to provide the uni-
form platform on which the software is to be uploaded for testing pur-
poses. The applicant neither has the capacity nor undertakes any testing
operations on the hardware so supplied by its customer. The whole pur-
pose of sending the hardware to provide uniformity in the platform on
which the entire software has to work once it is installed in the vehicle.
This activity was also treated by the Applicant as export of service under
the Service Tax Laws.
2.6 The applicant has made various submissions to state that the pre-
sent services fall under the purview of ”Export of Services” and thus seeks the
present advance ruling to understand whether the present services provided by
the Applicant would fall under “Export of service” under the GST laws.
2.7 Vide letter dated 23-1-2020 Applicant has submitted thst it is with-
drawing the first question posed in its Advance Ruling Application i.e. whether
the design & development services provided by Lear India to Lear entities situat-
ed abroad would amount to Export of service?, since the same would require a
discussion on the place of supply of services, which is outside the purview of this
Authority

GST LAW TIMES  16th July 2020  137