Case Law Details
Ohmi Industries Asia Private Limited Vs Assistant Commissioner (Delhi High Court)
Introduction: In a significant ruling, the Delhi High Court in the case of Ohmi Industries Asia Private Limited vs Assistant Commissioner has allowed GST refunds on market research services. The case questioned the denial of integrated tax refund on the grounds of the petitioner being considered an intermediary.
Analysis: Ohmi Industries Asia, providing services to its affiliated entity, OHMI Industries Ltd., Japan, sought a refund of the integrated tax on zero-rated supply. The tax was linked to two separate agreements for business support services and market research services. The application for refund was denied, arguing that Ohmi Industries was an intermediary, rendering services directly to OHMI, Japan’s customers.
However, the court found that the appellate authority had misunderstood the appeal, which was confined to seeking a refund for Market Research Services alone. Notably, Ohmi Industries hadn’t contested the denial of refund for providing Business Support Services.
The court noted that the petitioner, in offering Market Research Services, acted on its own account rather than as an intermediary between any service provider and OHMI, Japan. The court cited the definition of an ‘intermediary’ under Section 2(13) of the IGST Act and a relevant circular issued by the Central Board of Indirect Taxes to support its judgement.
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