Athene Technologies India LLP Vs State of Karnataka (Karnataka High Court)
Refund granted as software development service to overseas recipient qualifies as export of services
Karnataka High Court held that service of software development to overseas service recipients are that of an independent service provider which qualify as export of services under the service tax provisions and 2(6) of the IGST Act. Accordingly, refund granted and petition allowed.
Facts- The petitioner is a Limited Liability Partnership firm, which is registered with the service tax / GST Department and is providing software development services. The petitioner entered into Master Service Agreement with ‘THE ATHENE GROUP LLC, a limited liability company having its office in USA and it is an overseas entity and recipient of the services supplied by the petitioner which amounts to export of services, on account of which, the petitioner was not liable to pay service tax / GST on the said supply of services.
The petitioner filed a refund claim of IGST for April, 2022 and May, 2022 in a sum of Rs.76,16,997/- u/s. 54 of the CGST Act, which was allowed by the 3rd respondent vide OIO dated 28.07.2022 passed in favour of the petitioner. Being aggrieved, the Revenue filed an appeal before the appellate authority which proceeded to pass the impugned order dated 01.09.2023 allowing the appeal. Thus, being aggrieved, petitioner has preferred the present petition.
