Overseas BSS Not Intermediary – ITC Refund Allowed | HC

Case Details: Li and Fung (India) (P.) Ltd. vs. Union of India [2026] 182 taxmann.com 724 (Karnataka)

Judiciary and Counsel Details

• S.R. Krishna Kumar, J.
• Tarun Gulati, Senior Counsel & Parashuram A. L., Adv. for the Petitioner.
• Smt. Jyoti M. Maradi, HCGP & Aravind V. Chavan, Adv. for the Respondent.

Facts of the Case

The petitioner was engaged in providing business support services to its overseas group entity located outside India. It provided export of services as per the service agreement entered into with its Hong Kong-based group company, contending that it was not an ‘intermediary’ and was entitled to a refund of accumulated/unutilized input tax credit (ITC) available in the electronic credit ledger on account of export of services without payment of IGST. The petitioner’s refund application was rejected by the authorities. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that the petitioner was not an ‘intermediary’ and was engaged in the export of services under the service agreement with the Hong Kong-based group company. The Court held that the petitioner was entitled to a refund of the accumulated/unutilized ITC available in the electronic credit ledger under Section 54 of the CGST Act and the Karnataka GST Act. The Court also held that the authorities’ rejection of the refund application was unsustainable. It directed the concerned authorities to grant/sanction the refund of accumulated/unutilized ITC together with applicable interest.

List of Cases Reviewed

• Amazon Development Centre India (P.) Ltd. v. Additional Commissioner of Central Tax, GST Appeals-II [2025] 174 taxmann.com 1249 (Kar) (para 5)
• Columbia Sportswear India Sourcing (P.) Ltd. v. Union of India [2025] 174 taxmann.com 936 (Kar) (para 5)
• Athene Technologies India LLP v. State of Karnataka [2025] 175 taxmann.com 102/99 GSTL 210 (Kar) (para 5)
• Nokia Solutions and Networks India (P.) Ltd. v. Pr. CCT [2025] 170 taxmann.com 65 (Kar) (para 5), followed

List of Cases Referred to

• Amazon Development Centre India (P.) Ltd. v. Additional Commissioner of Central Tax, GST Appeals-II [2025] 174 taxmann.com 1249 (Kar) (para 5)
• Columbia Sportswear India Sourcing (P.) Ltd. v. Union of India [2025] 174 taxmann.com 936 (Kar) (para 5)
• Athene Technologies India LLP v. State of Karnataka [2025] 175 taxmann.com 102/99 GSTL 210 (Kar) (para 5)
• Nokia Solutions and Networks India (P.) Ltd. v. Pr. CCT [2025] 170 taxmann.com 65 (Kar) (para 5).