The court held that services provided do not constitute intermediary services, affirming that such services qualify as independent exports under the IGST Act.

ORDER :

S.R.KRISHNA KUMAR, J.

1. In this writ petition, the petitioner seeks the following reliefs

"a) Issue a writ of Certiorari or a Writ in the nature of Certiorari or any other appropriate Writ or order or direction under Article 226 of the Constitution of India quashing the impugned Show Cause Notice No. 17/2025-26/GST/AC/ND2 dated 30.05.2025 bearing DIN 2025055700000000669E issued by the Respondent enclosed at Annexure-A demanding CGST, SGST, IGST (allegedly erroneously sanctioned refund of unutilized ITC) along with interest and penalty;

b) Hold that the disputed services supplied by the Petitioner to WRUSA in furtherance of the Market Development Services Agreement qualify as export of services i.e., zero rated supplies and consequently not liable to GST; and

c) Pass such further order(s) and other reliefs as the nature and circumstances of the case may require."

2. The brief facts giving rise to the present petition is as under:

The petitioner entered into a “Market Development Services Agreement” dated 15.08.2011 (with effect from 01.04.2010) with M/s.Wind River Systems Inc. Delaware Company, USA (WRUSA) for supplying market development services and research and development services during the period April 2018 to March 2024. In relation to the period from April 2020 to March 2021, the petitioner filed a refund application dated 22.03.2022, which was allowed by the department vide order dated 31.05.2022. Aggrieved by the said order, the respondent issued a show cause notice proposing to demand Rs.23,66,957/- being refund of the unutilized Input Tax Credit purporting to be erroneously sanctioned vide refund sanction order dated 31.05.2022 for the aforesaid period. Aggrieved by the impugned show cause notice, the petitioner is before this court by way of the present petition.

3. Heard learned counsel for the petitioner, learned counsel for the respondent-department and perused the material available on record.

4. A perusal of the material available on record will indicate that the issue involved in the present petition as regards refund claim of the petitioner for unutilized Income Tax Credit on the ground that the petitioner is not an intermediary relating to demand of the refund sanction and question as to whether the petitioner was providing intermediary services, under identical circumstances came up for consideration before this Court in the case of M/s. Athene Technologies India LLP v. State of Karnataka (W.P.No.23286 of 2023 dated 28.04.2025), wherein it was held as under:

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

a) Allow the Writ Petition on costs.

b) Issue a writ or Certiorari by quashing the order passed by the Respondent No.2 at Annexure-F OIA No.188-190/2023- 24/ADC-AII/GST dated 01.09.2023 passed by the 2^nd Respondent.

c) Any other relief/s as deemed fit to be granted to the Petitioner by this Hon’ble Court in the circumstances of the case, in the interest of justice and equity.”

2. The brief facts giving rise to the present petitions are as under:- The petitioner is a Limited Liability Partnership firm, which is registered with the service tax / GST Department and is providing software development services. The petitioner which was earlier known as ‘SWC INDIA INVESTCO LLP’ entered into Master Service Agreement vide Annexure-H dated 01.04.2019 with ‘THE ATHENE GROUP LLC, a limited liability company having its office in USA and it is an overseas entity and recipient of the services supplied by the petitioner which amounts to export of services, on account of which, the petitioner was not liable to pay service ta