Accumulated ITC Refund Allowed As Assessee Not Intermediary | HC

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Refund Of Accumulated ITC

Case Details: Bluefish Pharmaceuticals (P.) Ltd. vs. Union of India [2026] 182 taxmann.com 92 (Karnataka)

Judiciary and Counsel Details

  • S.R.Krishna Kumar, J.
  • Bharat Raichandani, Raaghul Piraanesh & Chandrakiran. K, Advs. for the Petitioner.
  • Nishan Unni.P, CGC & Smt. Jyothi. M. Maradi, HCGP for the Respondent.

Facts of the Case

The petitioner was engaged in providing research and development (R&D) services and challenged the rejection of its refund claim. During the relevant period, the petitioner issued export invoices for the services provided to its parent company abroad under a Letter of Undertaking (LUT) with the endorsement ‘Export of Services without payment of IGST’ and claimed a refund of accumulated and unutilized input tax credit (ITC) available in its electronic credit ledger. The petitioner contended that it was not an ‘intermediary’ and, therefore, was entitled to claim the refund. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that the petitioner was not an ‘intermediary’ within the meaning of the CGST provisions and was directly providing R&D services to its parent company abroad. The Court observed that the claim for refund of accumulated ITC on export of services without payment of IGST was valid. It was noted that the impugned orders of the jurisdictional officer and the appellate authority were contrary to the statutory entitlement under Section 54 of the CGST Act and the Karnataka GST Act. Therefore, the Court quashed the rejection orders.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied