HC Grants Interim Relief in Export vs Intermediary Services GST Dispute

Case Details: Tvl. Toll Global Forwarding (India) (P.) Ltd. vs. State of Tamil Nadu [2026] 185 taxmann.com 251 (Madras)

Judiciary and Counsel Details

• C. Saravanan, J
• Nikhil Gupta for the Petitioner.
• C. Harsharaj, Special Government Pleader for the Respondent.

Facts of the Case

The petitioner provided logistics and forwarding services to overseas clients and contended that its services qualified as an ‘export of services’ under Section 2(6) of the IGST Act, making them zero-rated supplies under Section 16 of the IGST Act. It had claimed and received a refund of input tax credit (ITC) based on this position. However, A show cause notice was issued, alleging that the services fell under intermediary services, which meant the place of supply was within India under Section 13(8)(b) of the IGST Act, thereby disqualifying the transactions as exports. The authorities subsequently issued an impugned order confirming the tax demand and initiating recovery proceedings. Aggrieved by this recovery action, the petitioner filed writ petitions to challenge the order. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that the core issue was whether the logistics services qualified as an export of services under Section 2(6) read with Section 16 of the IGST Act or fell under intermediary services under Section 2(13), attracting Section 13(8)(b) of the IGST Act. It was determined that since this statutory dispute required detailed consideration, the writ petitions submitted must be admitted. To balance the fact that recovery proceedings had already been initiated by the government authorities, the Court granted interim protection to the petitioner. This protection was subject to the condition that the petitioner deposit Rs. 1.80 crore within 30 days. The Court directed that upon fulfillment of this deposit condition, further recovery actions pursuant to the impugned order would remain in abeyance.