DHL Express (India) Private Limited Vs Union of India & Ors. (Delhi High Court)
The Delhi High Court considered a writ petition raising an important interpretational issue under the GST framework concerning services provided without consideration to a foreign group entity. The petitioner, operating under a Network Agreement, provided courier and shipment delivery services to a foreign entity without inter-company consideration and paid GST treating such services as taxable under Section 7 of the CGST Act read with Schedule I. However, the petitioner contended that while tax was payable as a deemed supply, the absence of foreign exchange consideration disentitled it from zero-rated export benefits under Section 16 of the IGST Act read with Section 2(6), resulting in an incongruous position. The Court noted that non-receipt of consideration neither exempts the service from tax nor allows export benefits, creating a conflict requiring harmonious interpretation. While objections were raised on maintainability and refund procedure, the Court issued notice limited to statutory interpretation and directed the CBIC to examine the issue and place its stand or issue clarification, keeping the refund issue open for later consideration.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. This hearing has been done through hybrid mode.
