Section 12 of the IGST Act, 2017 — Place of Supply –-- The Petitioner challenged legality and validity of the order dated 04.02.2022 for total tax of Rs.2,21,38,236.40 as well as the consequential notice dated 08.06.2022. The petitioner under the trade name ‘Ola’ is engaged in the business of providing internet platform/mobile application services where the driver partners provide passenger transportation services to the customers. The petitioner provided transportation services by the drivers outside the State of Telangana and charged IGST, which it has paid. A notice for short payment of tax dated 02.03.2020 was issued, which says that the supplier of service and place of supply were found to be located in the State of Telangana. Therefore, SGST and CGST had to be paid by the petitioner and not IGST. The court observed that if the passenger is not registered under GST and avails transportation service, by way of legal fiction the place of supply would be the place where the passenger embarks or starts his journey. The respondent has referred to provisions of Section 12(9) of the IGST Act, and has however erroneously recorded that in case of unregistered recipient, the place of supply shall be the location of such recipient, which prima facie appears to be in contravention of Section 12(9) of the IGST Act. Though the impugned order is a lengthy one, the substantive portion appears to be without due application of mind to the legal provision.

Held that:- The Hon’ble High Court set aside the order dated 04.02.2022, the notice dated 08.06.2022 and remanded the matter back to the 3rd respondent for a fresh decision in accordance with law after giving notice of hearing as well as opportunity of hearing to the petitioner. The petitioner to appear before the 3rd respondent within a period of three weeks and file additional submissions. Third respondent to consider the submissions of the petitioner and pass fresh orders in accordance with law within a period of four (04) weeks from the date of filing of additional submissions by the petitioner.