GSTAT says Subcontracting Services Qualify as Export, Not Intermediary Services

In Navitas Eduservices Private Limited v. Commissioner of CGST, South Delhi, the Tribunal examined whether services supplied by an Indian subsidiary to its Australian parent amounted to exports or intermediary services. Finding that Navitas India operated as an independent subcontractor, supplied services on its own account and received cost-plus consideration from the overseas recipient, the Tribunal allowed five refund appeals and directed refund of unutilised ITC with interest. In the Department’s appeal, it also held that an appellate authority cannot circumvent the statutory prohibition on remand under Section 107(11) by annulling an order and directing fresh consideration by the original authority.