Refund to be Allowed on Providing Book Keeping, Payroll & Accounting Services to Entity Incorporated in UK | HC

Case Details: Boks Business Services (P.) Ltd. v. Commissioner of Central Goods and Services Tax - [2023] 154 taxmann.com 72 (Delhi)

Judiciary and Counsel Details

• • Vibhu Bakhru & Amit Mahajan, JJ.
  • Ruchir Bhatia, Adv. for the Petitioner.
  • Ms Anushree Narain & Ms Shivangi Sinha, Adv. for the Respondent.

Facts of the Case

The petitioner was engaged in business of providing book keeping, payroll, and accounting services through use of cloud technology to its affiliated entity incorporated in United Kingdom. It filed refund application for refund of unutilized input tax credit in respect of the export of services.

The department issued notice proposing to reject the claim for refund of unutilized ITC in respect of export of services on ground that petitioner was an intermediary. However, the petitioner’s explanation was not accepted and claim for refund of input tax credit was rejected. It filed writ petition and challenged the refund rejection order.

High Court Held

The Honorable High Court noted that the petitioner contracted to provide the services of book keeping, payrolls, and accounts through the use of cloud technology. The petitioner acted as principal service provider as per agreement between parties and not as agent or intermediary. Therefore, the Court directed the department to process refund within period of four weeks from date of the order.