Order Date – 26 March 2025

Parties: KUEHNE PLUS NAGEL PRIVATE LIMITED Vs UNION OF INDIA & ORS.

Facts –

• The Petitioner, Kuehne Plus Nagel Pvt. Ltd., is engaged in international logistics services and exports services without payment of GST under a Letter of Undertaking (LUT), leading to accumulation of unutilized Input Tax Credit (ITC). 
• For the period April 2021 to June 2021, the petitioner filed a refund claim towards unutilized ITC. The GST department rejected the refund citing non-submission of Foreign Inward Remittance Certificates (FIRCs) as per CBIC Circular No. 125/44/2019-GST, despite the petitioner submitting CA certificates, EEFC bank statements, and other documents validating foreign exchange receipt.

Issue –

• Whether a refund of unutilized Input Tax Credit on export of services can be denied solely on the ground of non-submission of Foreign Inward Remittance Certificates?

Order –

• The Divisional Bench of the Hon’ble High Court observed that the Hon’ble Supreme Court in case of Union of India Versus Mangal Textile Mills Private Limited reported in 2011 (269) E.L.T. 3 (S.C.) has held that the Certificate issued by the Chartered Accountant is required to be considered by the Authority as an authentic document and in the facts of the case when the Chartered Accountant has issued the Certificate, the respondent-Authorities bound to take into consideration the same.
• On perusal of the certificate, it is clear that the petitioner has received the convertible foreign exchange for the export of the services and therefore, only on the ground that the petitioner has submitted the FIRC as required by the Circular No.125/44/2019 issued by the CBIC, the respondent Authorities were not justified in rejecting the refund claim.
• In view of the foregoing reason, the petition succeeds and accordingly, allowed and the respondent- Authorities are directed to process the refund claim of the petitioner.