FACTS OF THE CASE

Petitioner Chegg India Private Limited (an Indian company providing software/content development and IT/ITES services to its U.S. parent) filed multiple writ petitions under Article 226 of the Constitution challenging the rejection of refund claims of unutilised Input Tax Credit (ITC) by the Central Goods and Services Tax authorities. The petitions were numbered W.P.(C) 11718/2025, 11733/2025, 11736/2025, and 11762/2025.

The Petitioner’s ITC refund applications pertaining to periods from June 2020 to March 2022 were rejected partially or wholly on grounds that the services were not export of services, that Chegg was allegedly an intermediary, or documentary evidence (such as agreements and FIRCs) was lacking.

ISSUES INVOLVED

  1. Whether the Petitioner was eligible for refund of unutilised ITC on the nature of services provided (export vs intermediary).
  2. Whether the Appellate Authority under Section 107 of the CGST Act, 2017 could independently re‑examine documents and evidence not adequately considered by the Adjudicating Authority. 

PETITIONER’S ARGUMENTS

  • Petitioner argued all refund claims arose from same nature of transactions (export of services) and thus uniform treatment was justified.
  • Sufficient documentary evidence (agreements, FIRCs) had been filed at the original and appellate stages establishing eligibility as export of service.
  • It was argued that the rejections lacked consistent reasoning and factual basis. 

RESPONDENT’S ARGUMENTS

  • Respondents (CGST Authorities) contended that documentation was inadequate, and the Petitioner’s classification as an intermediary was a valid basis to deny refund.
  • It was submitted the Appellate Authority could not re‑adjudicate afresh beyond scope permitted under Section 107(11) CGST Act. 

COURT ORDER / FINDINGS

The Delhi High Court, in a bench of Justices Prathiba M. Singh and Shail Jain, held:

  1. The issues primarily arose due to staggered and inconsistent adjudication of similar refund claims.
  2. Reliance was placed on earlier case law Sonu Monu Telecom Pvt. Ltd. v. Union of India Revenue Secretary, which clarified that Section 107(11) CGST Act empowers the Appellate Authority to confirm, modify, or annul an order and to undertake a fresh consideration of evidence (excluding remand back embargo), if required for just disposal.
  3. The inconsistent outcomes in different periods (some refunds granted and some rejected) warranted a fresh, consolidated examination of all refund claims and supporting documents by the Appellate Authority.
  4. Accordingly, the impugned Orders‑in‑Appeal were set aside and the matters were remanded back to the Appellate Authority for fresh adjudication with liberty to the Petitioner to file any further documents within two months. 

IMPORTANT CLARIFICATION

  • The Court clarified that the Appellate Authority under GST can undertake a holistic review of evidence, especially where staggered decisions resulted in irreconcilable outcomes.
  • Inconsistency in treatment of refund claims relating to identical facts and periods undermines principles of reasonable, uniform application of tax laws. 

SECTIONS / LEGAL PROVISIONS INVOLVED

Article 226 of the Constitution of India – Writ jurisdiction of High Court.
 Section 107(11) of the Central Goods and Services Tax Act, 2017 – Powers of Appellate Authority to confirm, modify or annul orders and take fresh view of evidence.
(Section analysis based on the judgment content.)

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/75408092025CW117182025_105936.pdf 

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