Tvl. Toll Global Forwarding (India) Private Limited Vs State of Tamil Nadu (Madras High Court)
The Madras High Court admitted writ petitions challenging a show cause notice dated 31.07.2025 and the consequential GST demand order in Form GST DRC-07 dated 11.12.2025 issued against a logistics and forwarding service provider. The petitioner contended that the services rendered to overseas clients qualified as “export of services” under Section 2(6) of the IGST Act and constituted zero-rated supplies under Section 16, pursuant to which a refund of input tax credit amounting to Rs.67,18,292 had been sanctioned.
The authorities, however, alleged that the services were “intermediary services” under Section 2(13) of the IGST Act and, by virtue of Section 13(8)(b), the place of supply was within India, thereby disqualifying them as exports. The Court observed that the issue required detailed consideration and admitted the petitions. Considering the recovery proceedings initiated for Rs.1,49,62,013, the Court granted interim protection by directing the petitioner to deposit Rs.1.80 crore within 30 days, upon which all further proceedings pursuant to the impugned order would remain in abeyance pending further hearing.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
These Writ Petitions are filed challenging the impugned show cause notice dated 31.07.2025 and the consequential order passed in Form GST DRC – 07 dated 11.12.2025 by the respondents.
