Flemingo Dutyfree Shop Private Limited & Anr. Vs Union of India & Ors. (Gujarat High Court)
GST on concession fee leviable from Duty Free Shops as subsequently refund can be claimed of ITC on account of zero-rated supplies making entire transaction revenue neutral
The Hon’ble Gujarat High Court in the case of Flemingo Dutyfree Shop (P.) Ltd. v. Union of India [R/Special Civil Application No. 7777 OF 2018 dated July 29, 2024] directed the Petitioner to pay the amount of tax relating to the Concession fee from duty free shops and claim refund thereafter. However, the larger question relating to the non-leviability of tax on the concession fee from duty free shops was not delved upon as the entire transaction would be revenue neutral.
Facts:
Flemingo Dutyfree Shop (P.) Ltd. (“the Petitioner”) are having a Duty-Free Shop at the Arrival and Departure Terminal of the Sardar Vallabhbhai Patel International Airport, Ahmedabad for a term of seven years
Office of Airport Director for Sardar Vallabhbhai Patel International Airport, Ahmedabad (“Airport Authority”) started levying GST on “License fees for exclusive Concession to Develop, Operate and Maintain Duty Free Shops” (“Concession Fees”).
However, the Petitioner aggrieved by the levy of GST on Concession Fee, filed a writ petition contending that no GST would be leviable on the amount of concession fee as the levy of said tax would be a revenue neutral exercise, as the Petitioner is entitled to claim the refund of GST paid on such amount as the said supply is zero rated supply as per Section 16 of the Integrated Goods and Services Tax Act, 2017 (“the IGST Act”)
