https://www.taxtmi.com/caselaws?id=347875 The Delhi HC ruled in favor of the petitioner in a case involving refund of unutilized CENVAT credit for export of telecommunication services. The Department denied the refund claiming services were provided within India and involved related parties. The HC held that under the Master Supply Agreement, Verizon US was the actual service recipient with contractual rights and payment obligations, not the end customers who merely used the services. The court distinguished between service recipients and users, noting no contractual privity existed between the Indian entity and US customers. The HC found the Department incorrectly applied related-party criteria not stipulated under applicable rules. Following Paul Merchants Ltd precedent and referencing Circular 141/10/2011, the court determined the services qualified as exports. The petition was allowed, with the refund denial and service tax demand deemed unsustainable in law. en-us Tue, 12 Sep 2017 00:00:00 +0530 Tue, 22 Jul 2025 11:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=347875 The Delhi HC ruled in favor of the petitioner in a case involving refund of unutilized CENVAT credit for export of telecommunication services. The Department denied the refund claiming services were provided within India and involved related parties. The HC held that under the Master Supply Agreement, Verizon US was the actual service recipient with contractual rights and payment obligations, not the end customers who merely used the services. The court distinguished between service recipients and users, noting no contractual privity existed between the Indian entity and US customers. The HC found the Department incorrectly applied related-party criteria not stipulated under applicable rules. Following Paul Merchants Ltd precedent and referencing Circular 141/10/2011, the court determined the services qualified as exports. The petition was allowed, with the refund denial and service tax demand deemed unsustainable in law. Case-Laws Service Tax Tue, 12 Sep 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=347875