Intermediary classification and GST refund: export of services to an overseas entity could not be denied input tax credit refund.

A service provider rendering business support services to an overseas group entity was treated as supplying export of services and not as an intermediary on the facts found. On that basis, denial of refund of accumulated or unutilized input tax credit could not be sustained. The impugned refund rejection order and connected notices were set aside, and the tax authorities were directed to grant the refund with applicable interest within the stipulated time.

---

---

Issues: (i) Whether the petitioner was an intermediary for the purpose of denial of refund. (ii) Whether the petitioner was entitled to refund of accumulated or unutilized input tax credit with applicable interest and consequential quashing of the impugned order and notices.

Issue (i): Whether the petitioner was an intermediary for the purpose of denial of refund.

Analysis: The material on record showed that the petitioner was engaged in providing business support services to its overseas group entity and was rendering export of services. In the light of the binding decisions relied upon by the Court, the petitioner could not be treated as an intermediary on the facts of the case.

Conclusion: The petitioner was not an intermediary.

Issue (ii): Whether the petitioner was entitled to refund of accumulated or unutilized input tax credit with applicable interest and consequential quashing of the impugned order and notices.

Analysis: Once the petitioner was found not to be an intermediary and the services were treated as export of services, the rejection of refund could not be sustained. The impugned order and connected notices were liable to be set aside, and the respondents were required to grant the refund together with applicable interest within the stipulated time.

Conclusion: The petitioner was entitled to refund of accumulated or unutilized input tax credit with applicable interest, and the impugned order and notices were quashed.

Final Conclusion: The writ petition succeeded to the extent of setting aside the adverse tax action and securing refund relief in favour of the petitioner.

Ratio Decidendi: A service provider rendering export of services to an overseas entity is not an intermediary merely because it provides support services, and refund of accumulated input tax credit cannot be denied on that basis.

---