Viterra India Pvt Ltd Vs Union of India (Madras High Court)
Madras High Court held that GST is not leviable on Ocean Freight Services as per Supreme Court judgement and relevant notification. Thus, any amount collected by department as GST on Ocean Freight Services needs to be refunded back.
Facts- This Writ Petition is filed to quash the order in appeal dated 03.12.202 1 and rectification order dated 28.06.2022 passed by the respondent Nos.2 and 3 respectively and direct the respondents to forthwith sanction and grant the refund of Rs. 13,147/- along with appropriate interest for the month of July 2019.
It is submitted by the learned counsel for the petitioner as well as the learned counsel for the respondents that the issue stands covered by the judgment of the Hon’ble Supreme Court in 2022(61)GSTL 257 (SC) confirming the judgment of Gujarat High Court, wherein it was held that the levy of GST on Ocean Freight Services vide notification 8/2017-IT(Rate), dated 28.07.2017 and the Entry of the Notification No.10 of 2017-IT(Rate), dated 06.2017 was struck down.
Conclusion- Held that it is an admitted fact that the issue of levy of GST on Ocean Freight Services is settled by the Hon’ble Supreme Court and the Notification 8/2017- IT(Rate) dated, 28.07.2017 and the Entry of the Notification No.10 of 2017-IT(Rate), dated 06.2017 is struck down as ultra vires. In such circumstances the respondents are not empowered to collect GST for the Ocean Freight Services and consequently the respondents are bound to refund the amount collected.
