Section 13 of the IGST Act, 2017 —Export of Services --The Petitioner challenged the constitutional validity of the provisions of Section 13(8)(b) of the IGST Act and also the constitutional validity of Section 8(2) of the Act. The Hon’ble Judges of the Division Bench, struck down Section 13(8)(b) of the IGST Act as ultra vires, the IGST Act, besides being unconstitutional, whereas the companion Hon’ble Judge upheld the validity of the said provisions on all counts. The petitioner contended that the nature of the transaction(s) with its overseas customers is transactions of “export of services”, as the petitioner was providing services to its overseas clients. The petitioners contended that Section 13(8)(b) of the IGST Act is unconstitutional primarily on the ground that such provision cannot be read and/or utilized under the provisions of the CGST Act and SGST Act, as what is explicitly not permissible to be incorporated under the Act cannot be done implicitly. The court observed that the intention of the legislature is not to tax such transaction of export of services, also categorized as an intermediary service both under the IGST Act as also under the CGST and the MGST Acts. They are not inclined to hold that the provisions of Section 13(8)(b) and the provisions of Section 8(2) of IGST Act be struck down as unconstitutional. The impugned provisions insofar as they stand and are applicable only under IGST Act and the same cannot be made applicable for levy of tax on services under the CGST Act and MGST Act.

Held that:- The Hon’ble High Court held that the provisions of Section 13(8)(b) and Section 8(2) of the IGST Act are legal, valid and constitutional, provided that the provisions of these Sections are confined in their operation to the provisions of IGST Act only and the same cannot be made applicable for levy of tax on services.