Amazon Development Centre INDIA Private Limited vs. The Joint Commissioner Of GST (Appeals-Ii) - Karnataka High Court, 17 September 2024

Cause title — parties, addresses and appearances

- 1 - NC: 2024:KHC:38510 WP No. 4580 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 4580 OF 2023 (T-RES) BETWEEN: AMAZON DEVELOPMENT CENTRE INDIA PRIVATE LIMITED NO 26/1, BRIGADE GATEWAY, WORLD TRADE CENTRE, 10TH FLOOR, DR RAJKUMAR ROAD, MALLESHWARAM, BANGALORE 560 055, (REP BY SHRI ALOK SUNIL CHANDNA, AGED 36 YEARS, SENIOR MANAGER TAX) INCORPORATED UNDER THE COMPANIES ACT, 1956 (NO 1 OF 1956) …PETITIONER (BY SRI. G. SHIVADASS, SENIOR COUNSEL APPEARING FOR SRI. RAVI RAGHAVAN AND SRI.SYED M.PEERAN, ADVOCATES) AND: 1. THE JOINT COMMISSIONER OF GST (APPEALS-II) BANGALORE , TRAFFIC AND TRANSIT MANAGEMENT CENTRE, BMTC BUILDING, 4TH FLOOR, ABOVE BMTC BUS STAND DOMLUR, OLD AIRPORT ROAD, BANGALORE - 560 071. 2. THE ASSISTANT COMMISSIONER OF CENTRAL TAX NORTH COMMISSIONERATE DIVISION -4, 1ST FLOOR, NO 16/1, SP COMPLEX, LALBAGH ROAD, BANGALORE 560 027. …RESPONDENTS (BY SRI. ARAVIND.V. CHAVAN, ADVOCATE) THIS W.P IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER-IN-APPEAL NO.267/2021-22 (A-II)JC GSTA NO.162/2020.21A-11(JC) DTD 22.03.2022 Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - NC: 2024:KHC:38510 WP No. 4580 of 2023 PASSED BY R1 AT ANNEXURE-A, REJECTING REFUND OF RS.1,02,63,970/- FOR THE PERIOD OCTOBER 2018 TO MARCH 2019. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, petitioner seeks for the following reliefs:-

“ a) Issue a writ in the nature of Certiorari or any other appropriate writ or order or direction under Article 226 of the Constitution quashing impugned Order-in-Appeal No.267/2021-22 JC(A-II) GST.A.No. 162/2020-21 (A-II(JC) dated: 22.03.2022 passed by Respondent No.1 at Annexure-A, rejecting refund of Rs-1,02,63,970/- for the period October 2018 to March 2019:

b) Hold that the pre-sale and post-sale services provided by the Petitioner to its Foreign Affiliates is not in the nature of ‘intermediary’ under Section 2(13) of the IGST Act and that such service qualifies as 'export of service under Section 2(6) of the IGST Act:

c) Hold that the Petitioner is not an intermediary' in terms of Section 2(13) of the IGST Act and does not meet the requirements of an intermediary.

d) Sanction refund of Rs. 1,02,63,970/-, being the accumulated input tax credit relating to the export of customer support services to Foreign Affiliates during the period October 2018 to March, 2019 along with applicable interest. NC: 2024:KHC:38510 e) pass such further order(s) and other reliefs as the nature circumstances of the case may require.”

Heard learned Senior counsel for the petitioner and learned counsel for the respondents and perused the material on record.

The issue involved in the present petition is directly and squarely covered by the judgment of this Court in relation to the very same petitioner in M/s.Amazon Development Centre India Private Limited vs. Additional Commissioner of Central Tax & Another – W.P.No.13007/2024 Dated 17.09.2024, wherein it is held as under:-

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In the light of the aforesaid discussion and facts and circumstances narrated supra and the principles laid down in the aforesaid judgments, I am of the considered opinion that the petitioner is not an “intermediary” under Section 2(13) of the IGST Act in terms of the Circular dated 20.09.2021 and the Customer support services provided by the petitioner to foreign affiliates qualify as export of service under Section 2(6) of the IGST Act and consequently, the impugned orders and show cause notice deserve to be quashed.

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In the result, I pass the following:- ORDER (i) Petition is hereby allowed. NC: 2024:KHC:38510 (ii) The impugned Order-in-Appeal at Annexure-A dated 04.01.2024 insofar as it relates to rejection of the refund claim of the petitioner pertaining to the issue of intermediary / intermediary services is hereby quashed. (iii) The impugned show cause notice at Annexure-M dated 01.09.2022 issued by the respondents seeking recovery of refund sanctioned in relation to customer support services in favour of the petitioner is hereby quashed. (iv) Liberty is reserved in favour of the petitioner to contest the remaining issues before the GST Appellate Tribunal as and when the same is constituted by the Central Government.

In view of the aforesaid facts and circumstances, the present petition also deserves to be allowed and disposed of in terms of the aforesaid judgment.

In the result, I pass the following:- ORDER (i) Petition is hereby allowed. (ii) The impugned Order-in-Appeal at Annexure-A dated 22.03.2022 passed by the 1st respondent rejecting the refund claim of the petitioner pertaining to the issue of intermediary / intermediary services is hereby quashed. NC: 2024:KHC:38510 (iii) The respondents are directed to sanction refund of Rs.1,02,63,970/- being the accumulated input tax credit relating to export support services to foreign affiliates by the petitioner during the period from October 2018 to March 2019 together with applicable interest within a period of six weeks from the date of receipt of a copy of this order. (S.R.KRISHNA KUMAR) JUDGE

SV/SRL