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GST - Rule 28 of CGST Rules, 2017 - Import of Services, Secondment of employees, Value of supply between distinct or related persons – Issue of Show Cause Notices alleging perceived GST liability on the supply of services in connection with the placement of foreign expatriates to aid and assist the functions of the writ petitioners-assessees - Whether the transactions involving secondment of employees by the overseas group company to the Indian subsidiary would qualify as import of services under the GST law, and the value of such supply would be determined as per Rule 28 of the CGST Rules, 2017 – HELD - as per the clarification issued by the CBIC in Circular No. 210/4/2024-GST, where no invoice is raised by the related domestic entity in respect of services rendered by its foreign affiliate, the value of such services would be "deemed" to have been declared as 'Nil' and that 'Nil' value would be treated as the open market value for the purposes of the Second Proviso to Rule 28 - In the present cases, since it was conceded that no invoices were generated, the value of the service rendered would have to be treated as 'Nil', leading to the conclusion of no perceivable or plausible tax liability - While the correctness of the position as advocated in terms of that Circular may be questioned on the ground of whether it would be consistent with the statutory provisions or may be viewed as being contentious or contrary to the intent of the Second Proviso to Rule 28 itself, the Court is constrained to proceed further on the basis thereof since it may possibly be asserted that the Circular is founded on the tenuous thread of parties choosing to either generate an invoice or simply avoiding to do so. However, in the present matters, it is not for this Court to be boggled by or question the wisdom of the CBIC as the Circular in any case binds the respondents – Since in the present writ petitions, it is conceded that no invoices were generated, therefore, in light of the explicit terms of the Circular, the value of the service rendered would have to be treated as ‘Nil’ - the proceedings initiated in terms of the impugned SCNs’ and their continuance would be futile and impractical. The impugned SCNs are essentially rendered impotent and would serve no practical purpose - the impugned Show Cause Notices and consequential Orders-in-Original are quashed – the writ petitions are allowed
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