Refund of unutilized ITC of zero rated supplies (Exports) of goods & services.  

Judgment dated 16.6.2025 of the High Court of Bombay in Writ Petition No.15228 of 2023 of Sundyne Pumps and Compressors India Pvt Ltd  Vs.  Union of India  

Section 54(3) of the CST At, 2017 & MGST read with Rule 89(4) of CGST Rules / Maharashtra GST Rules.   The petitioner supplies engineering services to its customers including to its group companies / related persons located outside India.  The refund of unutilized ITC for April 2020 to March 2021 and April to June 2021 were allowed.  Two more refund applications for July to September and October to December 2021 for Rs.13,75,244/- and Rs.25,88,634/- were however rejected on the ground that the petitioner did not qualify the conditions of export services.  It was held that the foreign recipient of goods and services are Principal and the petitioner is their agent in India, the overseas recipient is carrying business in India through the agency of the Petitioner.   Therefore, the petitioner is mere establishment of the foreign recipients.  It is the case of the respondent no.4 that the petitioner is not independent contractor but an agent of the foreign recipient of goods and services.   HELD that the petitioner is an independent contractor and neither the petitioner nor its officers, directors, employees or sub-contractors are servants, agents or employees of the recipient of services.