Amazon Data Services India Private Limited Vs Assistant Commissioner of CGST (Delhi High Court)
Delhi High Court has remanded several refund claims of Amazon Data Services India Private Limited back to the Commissioner (Appeals) for reconsideration. The core issue in these petitions is whether the data hosting services provided by Amazon constitute “exports” under GST law, thus entitling the company to refunds.
Amazon Data Services had challenged four orders-in-appeal that denied their refund claims for various periods between August 2019 and March 2022. The company’s primary argument was that its data hosting services qualify as exports. During the High Court proceedings, Amazon highlighted Circular No. 232/26/2024-GST, dated September 10, 2024, issued by the Central Board of Indirect Taxes & Customs (CBIC). This circular explicitly clarifies that the supply of data hosting services by Indian providers to overseas cloud computing service providers constitutes exports, provided other conditions of Section 2(6) of the IGST Act are met. The circular also clarified that data hosting service providers are not considered “intermediaries” and that these services are not directly related to immovable property, thereby determining the place of supply as the recipient’s location outside India.
Crucially, Amazon’s counsel informed the court that the Appellate Authority itself had previously passed several orders in the company’s favor, holding identical services as exports. These orders, dated December 31, 2024, and January 1, 2025, had attained finality as they were not challenged by the revenue department. Furthermore, certain Orders-in-Original from the Adjudicating Authority, dated March 11, 2024, and April 16, 2024, also recognized these services as exports and had not been appealed. Amazon also confirmed that refunds based on these favorable orders had already been issued.
