Delhi High Court - Orders
Dhl Express (India) Private Limited vs Union Of India & Ors on 10 December, 2025
Author: Prathiba M. Singh
Bench: Prathiba M. Singh
$~79
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 17182/2025
DHL EXPRESS (INDIA) PRIVATE LIMITED .....Petitioner
Through: Mr. Rohan Shah, Sr. Adv. with Mr.
Mohammed Anajwalla, Adv.
versus
UNION OF INDIA & ORS. .....Respondents
Through: Ms. Vaishali Gupta, Panel Counsel
(Civil) GNCTD
Mr. Akash Panwar, Jr. Standing
Counsel with Ms. Jasleen Kaur
Anand, Adv. for R-2
Mr. Ajay Chowdhary, SPC
CORAM:
JUSTICE PRATHIBA M. SINGH
JUSTICE SHAIL JAIN
ORDER
% 10.12.2025
1. This hearing has been done through hybrid mode. CM APPL. 70647/2025 (for exemption)
2. Allowed, subject to all just exceptions. The application is disposed of. W.P.(C) 17182/2025
3. The present petition has been filed by the Petitioner- DHL Express (India) Private Limited under Article 226 and 227 of the Constitution of India, inter alia, seeking refund of the excess tax paid by the Petitioner.
4. The issue involved in the present petition is in respect of the interpretation of Section 7 of the Central Goods and Services Tax Act, 2017 (hereinafter, 'CGST Act')along with Section 16(1)(a) and 2(6) of the Integrated Goods and Services Tax Act, 2017 (hereinafter, 'IGST Act').
W.P.(C) 17182/2025 Page 1 of 4This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 11/12/2025 at 20:50:43
5. A brief background of the Petitioner's case is that, the Petitioner- DHL Express (India) Private Limited (hereinafter, 'DHL India') has a 'Network Agreement' with DHL International GmbH (hereinafter, 'DHL Germany')under which, their respective clients are provided services, in India and in Germany, without payment of any consideration between the two companies.
6. Mr. Rohan Shah, ld. Sr. Counsel on behalf of the Petitioner submits that such services which are courier/shipment delivery services, are described as `Unbilled Shipments' in the trade parlance.
7. DHL India discharged tax on such services as the same would constitute a service under Section 7(1)(a) read with Schedule 1 of the CGST Act, even though the same is without consideration.
8. However, it is submitted that since the entity which is receiving the service, i.e., DHL Germany is located abroad, the service which is provided would also constitute 'Zero Rated Supply' under Section 16(1) of the IGST Act.
9. One of the conditions for constituting 'Zero Rated Supply' is export of services under Section 2(6) of the IGST Act, however, it requires receipt of consideration in convertible foreign exchange, which is absent in the present case. Thus, the submission of ld. Counsel for the Petitioner is that if there is an incongruity in the provisions and the same deserves to be interpreted by this Court.
10. Additionally, ld. Sr. Counsel for the Petitioner also places reliance on the fact that three other High Courts, i.e., the High Court of Kerala, the High Court of Karnataka and the Madras High Court have already issued notice in these matters.
W.P.(C) 17182/2025 Page 2 of 4This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 11/12/2025 at 20:50:43
11. On the other hand, Ms. Vaishali Gupta, ld. Panel Counsel relies upon the order of the Division Bench of Bombay High Court in Writ Petition No. 3977/2025 titled Ms. DHL Express India Pvt. Ltd. v. Union of India wherein, the Court had directed the Petitioner to first approach the concerned authorities by filing a refund application and the challenge by way of a writ petition was rejected by the Court.
12. Further, Mr. Akash Panwar, ld. JSC for the Central board of Indirect Taxes and Customs (hereinafter, 'CBIC') also submits that in terms of the Constitution Bench judgment in Mafatlal Industries ltd. v. Union of India (1997) 5 SCC 536, the procedure for claiming a refund ought to be followed and no writ petition can be entertained in respect of refund applications directly, without an application for refund having been filed.
13. The Court has heard ld. Counsels for the parties. Insofar as the interpretation of Section 7 of CGST Act read with Section 16 of IGST Act is concerned, the matter deserves consideration inasmuch as the non-receipt of foreign exchange/consideration while on one hand does not exempt the Petitioner from paying taxes, it deprives the Petitioner of the benefits of export of services.
14. Prima facie, the Court is of the opinion that these aforesaid provisions would have to be harmoniously interpreted and a view would have to be taken by this Court.
15. Accordingly, issue notice only in respect of the interpretation of the aforesaid provisions and other relevant laws. Ms. Vaishali Gupta, ld. Panel Counsel accepts notice on behalf of Respondent No.3 and 4, Mr. Akash Panwar, ld. JSC accepts notice on behalf of Respondent No.2. Mr. Ajay Chowdhary, ld. SPC accepts notice on behalf of Respondent No.1.
W.P.(C) 17182/2025 Page 3 of 4This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 11/12/2025 at 20:50:43
16. Insofar as the prayer for refund itself is concerned, the same shall be considered only at a later stage, if the need so arises.
17. Considering the fact that various High Courts are considering the matter, let the CBIC look into this issue and may place its stand before this Court either by way of an affidavit or issue a clarification, if the need is so felt.
18. The stand of the Petitioner in the present petition may be treated as a representation.
19. Let this order be communicated to the CBIC by Mr Aakash Panwar, ld. JSC for the CBIC.
20. List on 26th February 2026.
PRATHIBA M. SINGH, J.
SHAIL JAIN, J.
DECEMBER 10, 2025/pd/sm W.P.(C) 17182/2025 Page 4 of 4 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 11/12/2025 at 20:50:43