Refund for Export of Services Cannot Be Denied When eBRC/FIRC Submitted | HC

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  • Last Updated on 11 December, 2025

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refund on export of services

Case Details: Mavenir Systems (P.) Ltd. vs. Union of India [2025] 181 taxmann.com 197 (Karnataka)

Judiciary and Counsel Details

  • S.R. Krishna Kumar, J.
  • Rohan Shah, Senior Counsel, Mohammed Anajwalla & Sandeep Huilgol, Advs. for the Petitioner.
  • Aravind V. Chavan, Adv. & H. Shanthi Bhushan, ASGI for the Respondent.

Facts of the Case

The petitioner exported services without payment of tax and filed refund claims of unutilised ITC under Section 54 of the CGST Act/Karnataka GST Act. The jurisdictional authority sanctioned the refund. In replies to the SCNs issued during departmental review, the petitioner submitted eBRCs (electronic bank realisation certificates) and FIRCs (foreign inward remittance certificates) with particulars; however, the appellate authority set aside the sanctions and rejected the refund on the ground of alleged non-production of these documents. Parallel recovery proceedings culminated in an adjudication order and issuance of DRC-07. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that the finding of the appellate authority that eBRCs/FIRCs were not produced was factually incorrect because the petitioner’s replies on record enclosed such documents. The court further held that details of foreign remittances were available with the departmental authorities, and alleged non-production could not defeat a refund claim for export of services under Section 54 of the CGST Act/Karnataka GST Act, Section 16 of the IGST Act, and Rule 89 of the CGST Rules/Karnataka GST Rules. The court held that the impugned appellate orders, SCN, adjudication order, and recovery notices were unsustainable. It accordingly directed the departmental authorities to grant the refund as originally sanctioned along with applicable interest.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied