SUNDYNE PUMPS AND COMPRESSORS INDIA PVT. LTD. (FORMERLY KNOWN AS HMD SEAL/LESS PUMPS INDUSTRIAL PVT LTD)

Vs.

UNION OF INDIA & ORS.

WRIT PETITION No.15228 of 2023 

HIGH COURT: Bombay

DATED: 16.06.2025

Citation: 2025 Taxo.online 1156

Refund – Unutilized ITC – Zero-rated supplies(Exports) – Refund denied on grounds petitioner acted as agency of foreign recipient – Petitioner supplies engineering services and goods to its group companies/related persons located outside India – Authorities held that fixed mark-up pricing, control clauses, and related-party relationship constituted “agency” under Section 2(5) of CGST Act – Petitioner contended to be independent contractor and not acting on behalf of any third party – Petitioner provides design and engineering services to its customers on principal-to-principal basis by employing its own manpower and other resources – No control by foreign recipient on petitioner – Relying on Xilinx India Technology Services (P.) Ltd. Vs. Special Commissioner Zone VIII(2023 Taxo.online 906) no agency exists as services rendered on principal-to-principal basis and no third party involved – CBIC Circular No.161/17/2021-GST dated 20.09.2021 clarified transactions between sister/group companies and holding/subsidiary companies not covered under condition (v) to Section 2(6) of the IGST Act – Condition (v) of Section 2(6) IGST Act fully satisfied

Held

Writ petition disposed – Petitioner entitled to refund along with interest to be processed within four weeks

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