Export refund claims for hosting data services remanded for fresh reconsideration after final prior orders and GST circular.

Refund claims for services treated as exports could not be finally rejected where earlier unchallenged appellate and original orders had already recognised identical services as exports. The Delhi High Court noted that those prior orders had attained finality and that Circular No. 232/26/2024-GST further clarified the export character of hosting data services supplied from India. Because the impugned Orders-in-Appeal pre-dated those developments, the appellate authority was directed to reconsider the refund claims afresh after granting a personal hearing. The matters were remanded to the Commissioner (Appeals) for fresh decision within four months.

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Issues: Whether the impugned Orders-in-Appeal rejecting refund claims on the footing that the services rendered did not constitute exports ought to be set aside and the matters remanded for reconsideration in light of earlier appellate orders and the GST circular.

Analysis: The petitions concerned refund claims arising from identical services already treated as exports in earlier unchallenged appellate orders and certain unchallenged Orders-in-Original. The Court noted that those orders had attained finality and that Circular No. 232/26/2024-GST dated 10.09.2024 also clarified the export character of hosting data services supplied by service providers located in India. Since the impugned orders pre-dated those later orders and the relevant circular, the proper course was reconsideration by the appellate authority rather than immediate adjudication of the challenge on merits.

Conclusion: The impugned Orders-in-Appeal were set aside and the matters were remanded to the Commissioner (Appeals) for fresh consideration within four months after granting personal hearing.

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