Bombay HC Allows ITC Refund on Exports to Sister Concern, Rejects Revenue’s Arguments

• Bombay High Court allowed refund of unutilized Input Tax Credit on services exported to a sister company abroad with statutory interest.
• Court rejected Revenue’s claim that the assessee and foreign entity were not distinct persons under IGST Act.
• Court dismissed Revenue’s argument that the assessee acted as an agent of the foreign company.
• Assessee exported services independently without control from the foreign recipient.
• Court referenced CBIC Circular and case law to clarify conditions for distinct persons.
• Case: Sundyne Pumps and Compressors India Pvt Ltd. vs. The Union of India.

Source: a2ztaxcorp.net

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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