IGST on importer on Ocean Freight are ultra vires to the IGST Act : HC

By | April 5, 2020
(Last Updated On: April 5, 2020)

 IGST on importer on Ocean Freight are ultra vires to the IGST Act: HC

No tax is leviable under the Integrated Goods and Services Tax Act, 2017 on ocean freight for services supplied by a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India and levy and collection of tax on such ocean freight under the impugned Notification is not permissible under the law;

HIGH COURT OF GUJARAT

Essar Power Gujarat Ltd.

v.

Union of India

J.B. PARDIWALA AND BHARGAV D. KARIA, JJ.

R/SPECIAL CIVIL APPLICATION NO. 1417 OF 2020

JANUARY  29, 2020

Mohit Minerals (P.) Ltd. v. Union of India [2020] (para 2) followed.

ORDER

J.B. Pardiwala, J. – By this writ application under article 226 of the Constitution of India, the writ applicant has prayed for the following reliefs:

“(a)This Hon’ble High Court be pleased to issue a writ of certiorari/mandamus or any other appropriate writ/order/direction against the Respondents by quashing the impugned Notification NO.8/2017-Integrated Tax (Rate) dated 28-6-2017 and Entry 10 of the Notification NO.10/2017-Integrated Tax (Rate) dated 28-6-2017 by declaring that same lack legislative competency, ultra vires the Integrated Goods and Services Tax Act, 2017 and hence, unconstitutional;
(b)This Hon’ble High Court be pleased to issue a writ of certiorari/mandamus or any other appropriate writ/order/direction against the respondents by declaring that no tax is leviable under the Integrated Goods and Services Tax Act, 2017 on ocean freight for services supplied by a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India and levy and collection of tax on such ocean freight under the impugned Notification is not permissible under the law;
(c)This Hon’ble High Court be pleased to issue a writ of mandamus/order/direction to the respondent No.2 to place before this Hon’ble Court the records of the recommendations given and all decision taken in respect of impugned Notification No.8/2017-Integrated Tax (Rate) dated 28-6- 2017 and the Notification NO.10/2017-Integrated Tax (Rate) dated 28-6- 2017;
(d)This Hon’ble High Court be pleased to issue a writ of mandamus/order/direction to the respondent authorities directing them to refund the total amount of IGST paid on ocean freight by the petitioner till the disposal of the petition along with applicable interest for its coal imports;
(e)that pending the hearing and final disposal of the petition, this Hon’ble Court be pleased to:
(i)stay the operation of impugned Notification No.8/2017-Integrated Tax (Rate) dated 28-6-2017 and Entry 10 of the Notification NO.10/2017-Integrated Tax (Rate) dated 28-06-2017 and/or;
(ii)Restrain the respondent No.1 and all its officers, agents from taking any coercive action measure against the petitioner and it’s officers during the pendency of writ petition, and/or
(f)Issue such other writ/order/direction and further orders as the Hon’ble Court may deem just and proper in the facts and circumstances of the case.”

2. By judgment and order dated 23rd January 2020 passed by this Court in the Special Civil Application No.726 of 2018 and allied matters, this Court declared the Notification No.8/2017 – Integrated Tax (Rate) dated 28th June 2017 and the Entry 10 of the Notification No.10/2017 – Integrated Tax (Rate) dated 28th June 2017 are declared as ultra vires the Integrated Goods and Services Tax Act, 2017 on the ground of lack legislative competency. Notifications levying IGST

3. In such circumstances referred to above, this petition need not be now adjudicated any further. The same is disposed of accordingly.

IGST on importer on Ocean Freight

For latest Notification Refer Govt Website Click Here

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