Sunrise Timply Company Pvt. Ltd. Vs Union of India & Ors. (Calcutta High Court)
This writ petition before the Calcutta High Court challenged an order-in-original dated January 30, 2025 passed under Section 74 of the Central Goods and Services Tax Act, 2017 / West Bengal Goods and Services Tax Act, 2017, along with a subsequent order dated March 25, 2025 rejecting the petitioner’s rectification application. The proceedings arose from allegations that the petitioner failed to pay Integrated GST (IGST) on ocean freight under the reverse charge mechanism for imported goods.
The dispute originated with a show cause notice dated September 8, 2021 for the period July 2017 to March 2018, alleging non-payment of IGST on ocean freight. The petitioner replied, relying on the Gujarat High Court judgment in Mohit Minerals, asserting that IGST on ocean freight was not payable. A further notice dated July 13, 2022 was also issued and replied to on similar grounds. During adjudication, the petitioner consistently maintained that, in view of the judgments in Mohit Minerals by the Gujarat High Court and later by the Supreme Court, no IGST could be levied on ocean freight for imports.
After a personal hearing on September 26, 2024 and written submissions filed on October 7, 2024, the Proper Officer nevertheless passed the impugned order on January 30, 2025, holding the petitioner liable to pay ₹18,61,047 towards IGST on ocean freight. The petitioner’s rectification application, again citing the Supreme Court ruling in Mohit Minerals and subsequent High Court decisions, was rejected on March 25, 2025, prompting the present writ petition.
