Page 173 - GSTL_6th August 2020_Vol 39_Part 1

2020 ] IN RE : HITACHI POWER EUROPE GMBH 99
under CTH 8710 00 00 for the reasons stated at Para 10.2 & 10.3
above.
(3) In respect of Q. No. 5, Classification is independent of the buyer or
seller and depends only on the goods.

_______

2020 (39) G.S.T.L. 99 (A.A.R. - GST - Mah.)

BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
MAHARASHTRA
Ms. P. Vinitha Sekhar, Member (Central Tax) and Shri A.A. Chahure,
Member (State Tax)
IN RE : HITACHI POWER EUROPE GMBH
Order No. GST-ARA-38/2019-20/B-27-Mumbai, dated 11-3-2020
in Application No. 33
GST - Accounting entry made for the purpose of Indian accounting re-
quirements in the books of accounts of Project Office for salary cost of Expat
employees - GST whether applicable - Project office is a branch office set up
by Foreign Company in India with the limited purpose for executing a specific
project and can enter into transactions for receipt of supply of goods and ser-
vices for execution of project - Project Office having its own employees and
also some employees of Head Office (Expat employees) - Accounting entry as
mandated by the Companies Act, 2013 made by Project Office in its financial
books of accounts in India for the salary cost of the Expat employees even
though salary paid by Head Office - PAN and TAN allotted to the Project of-
fice in the name of the Head Office situated abroad, by the Income Tax Au-
thorities - Hence, Project office is an extension of the foreign Head Office, and
Project Office and the expat employees having a relation of employer and em-
ployee - Consequently, services by an employee to the employer in the course
of or in relation to his employment will not be considered as a supply and
therefore will not attract GST as per provisions of Schedule-III to Central
Goods and Services Tax Act, 2017. [paras 5.5, 5.6, 5.7, 5.8, 5.9]
Ruling in favour of assessee
CASES CITED
Commissioner v. Nissin Brakes India Private Limited
— 2019 (24) G.S.T.L. 563 (Tribunal) — Referred ..................................................................... [Para 2.19]
Commissioner v. Nissin Brakes India Private Limited
— 2019 (24) G.S.T.L. J171 (S.C.) — Referred ............................................................................ [Para 2.19]
Habufa Meubelen B.V — 2018 (14) G.S.T.L. 596 (A.A.R. - GST) — Referred ................................ [Para 2.20]
DEPARTMENTAL CLARIFICATION CITED
R.B.I. Master Direction No. 10/2015-16, dated 1-1-2016 ................................................................... [Para 5.2]
[Order]. - Proceedings : The present application has been filed under Sec-
tion 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra
Goods and Services Tax Act, 2017 (hereinafter referred to as “the CGST Act and
MGST Act” respectively) by M/s. Hitachi Power Europe GmbH, the applicant,
seeking an advance ruling in respect of the following question.
GST LAW TIMES  6th August 2020  173