Thread by @barandbench

#SupremeCourt is hearing plea seeking removal of GST and income tax on the Haj services provided to Hajis of India in Saudi Arabia. The bouquet of services include Air tickets, currency exchange, etc

Adv for petitioner: this is a crucial issue about where the service is consumed. The law says that tax will be levied where the consumer is located and we challenge this aspect
#hajtax

Justice AM Khanwilkar: Consumption theory that you are trying to tell us for a air company not from India, flying from India, then only the proportion of tax will be for the ratio traveled in India. Is it?

Adv: Counsel: airline analogy the services starts from India.

Adv: here the services start from Saudi Arabia, if the Haj pilgrimage is considered as a religious ceremony, merely because other services are bundled with the services we cannot be left out of the exception here

#hajtax

SC: If there is anything related to Religious Ceremony or conducted at a religious place then how are you in this ? say you put up in a private hotel and perform religious ceremony at the Holy Kaaba, then in that case how can you be exempted. #Hajtax

SC: if this is permitted then Whoever is going to Varanasi may say this. This exemption is for all the cultures, it is not specific to Haj. Facts of each case will have to be examined by the authority concerned here. #hajtax

Adv: every step here is regulated here

SC: Travelling is not a religious ceremony, performance of Umrah is a religious ceremony

SC: What is the ceremony, we want to understand? we are right now hearing prayers of the agents who are providing Service of Haj, what is it that you are challenging?

Adv: The exemption is limited to the stay in Saudi Arabia and the services provided therein

#hajtax

SC: Then the only issue is that the whole regime is not applicable except for the travelling part?

Adv: Yes, if Haj is performed through the Haj Committee of India then it is exempted but not in the case of private agents, that is the moot point #hajtax

Adv: What the Quran requires us to do is perform Haj with our own earnings only and not from the subsidies provided by the Govt at all.

SC: But is not claiming this exemption is also getting a subsidy from the Government? and also getting money of Govt? #hajtax

SC: All this spending is outside India?

Adv: yes the govt document shows it and it is not something i am showing. It is all outside. #hajtax

Adv: This is not any other tour. I or the Hajis have no freedom it has to be completed in a particular manner. Not only otherwise it has penal consequences but it is also not considered as a complete haj. stay and accommodation in the manner provided has to be availed for Haj

Adv: That is why the exemption has to fall under it. Union admits that it is a religious ceremony. #hajtax

Adv: please look at the RTI where union accepts it is a religious ceremony

SC: In all policy document, RTI is misleading. This is our broad experience. RTI is not an admission of the government. Let the authority say this on affidavit.

#hajtax

Adv: There is an overnight stay at Meena...this is a part of the ceremony. Today the limited challenge is not against airline tickets, etc but for the services provided in saudi arabia.

SC: you want us to say that this is the religious ceremony and thereby claim exemption?

Adv: Yes

SC: Then it has to be established then even if its happening outside India, its all a part of the religious ceremony, is it not?

Because the services have organized here then it is levied here.. that is the opp side argument. But we have to now draw a line that activity outside sourcing in Indian cannot be taxable in India. Therefore which activity is outside India: SC

SC: The arrangements worked out here. discrimination argument will come under writ jurisdiction. rest of the argument will come under law

Adv Kotla Harshvardhan: individual assessment orders were challenged.

ASG KM Natraj: People residing outside is paying taxes in India. if their argument is accept on extra territorial etc then the entire argument goes for a toss.

ASG: If the provider and recipient in the same geographical territory where services are partly in India and partly outside, is deemed to have been performed in India when the receiver and provider is both within India

Sr Adv Arvind Datar: even today on the GST rules that if the service is provided outside india then its not liable to tax. suppose if my son studies in england can you tax it here?

Justice AM Khanwilkar: heard in part. Arguments to resume on April 26, 2022. Liberty to file written submissions.
#HajTax

Sr Adv Arvind Datar: I had read the book Making a Muslim to understand the subject and I realised that it is the only religion which makes this pilgrimage ( #Haj ) obligatory. No other religion says you must go to Vatican or must go to Kashi. It's a superb book.
#HajTax