Amazon Development Centre India Private Limited Vs Additional Commissioner of Central Tax
Date: September 16, 2025
Subject Matter
Pre-sale and post-sale services provided to foreign affiliates are NOT "intermediary services" under Section 2(13) of IGST Act
Summary
The petitioner, M/s. Amazon Development Centre India Private Limited, challenged an Order-in-Appeal that rejected their claim for a refund of accumulated Input Tax Credit (ITC) for two periods, totaling ₹3,25,59,406. The rejection was based on the tax department's contention that the pre-sale and post-sale services provided by the petitioner to its foreign affiliates were "intermediary services" under Section 2(13) of the IGST Act, meaning they would not qualify as an "export of service" and would be liable to GST.
The court noted that the exact issue was "directly and squarely covered" by its own previous judgment concerning 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). In that precedent, the court had ruled that the customer support services provided to foreign affiliates were not intermediary services and correctly qualified as an "export of service" under Section 2(6) of the IGST Act.
The High Court allowed the petition in part by applying the binding precedent.
Quashing of Order: The impugned Order-in-Appeal dated January 19, 2024, was quashed insofar as it related to the rejection of the refund claim on the issue of intermediary services.
Refund Direction: The respondents are directed to sanction the refund of:
₹1,70,07,956/- (for the period October 2020 to March 2021)
₹1,55,51,450/- (for the period April 2021 to September 2021)
Interest and Timeline: The refund amounts must be released together with applicable interest within a period of six weeks.
Liberty to Appeal: Liberty is reserved for the petitioner to contest any remaining issues before the GST Appellate Tribunal when it is constituted.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
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 the impugned Order-in-Appeal No.270-271/2023-24/ADC-AR/GST dated 19.01. 2024 passed by Respondent No. 1 at Annexure-A for the period October 2019 to March 2020;
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 expo of service under Section 2(6) of the IGST Act,
c. Hold that the Petitioner is not an ‘intermediary’ in terms of Section 2 of the IGST Act
d. Sanction refund of Rs.1,70,07,956/- being the accumulated ITC period October 2020 to March 2021 along with applicable interest vide Annexure-A
e. Sanction refund of Rs. 1,55,51,450/- being the accumulated IT period April 2021 to September 2021 along with applicable interest vide Annexure-A
f. pass such further order(s) and other reliefs as the nature and circumstances of the case may require.”
2. Heard learned Senior counsel for the petitioner and learned counsel for the respondents and perused the material on record.
3. 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:-
29. 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.
30. In the result, I pass the following:-
ORDER
i. Petition is hereby allowed.
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.
4. 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.
5. In the result, I pass the following:-
ORDER
i. Petition is hereby allowed. partly
ii. The impugned Order-in-Appeal at Annexure-A dated 19.01.2024 passed by the 1st respondent 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 respondents are directed to sanction refund of Rs.1,70,07,956/- being the accumulated input tax credit relating to export support services to foreign affiliates by the petitioner during the period from October 2020 to March 2021 together with applicable interest within a period of six weeks from the date of receipt of a copy of this order.
iv. The respondents are directed to sanction refund of Rs.1,55,51,450/- being the accumulated input tax credit relating to export support services to foreign affiliates by the petitioner during the period from April 2021 to September 2021 together with applicable interest within a period of six weeks from the date of receipt of a copy of this order.
v. 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.