A T Trade Overseas Pvt Ltd Vs Union of India & Anr (Gujarat High Court)
Gujarat High Court held that imposition of Integrated Goods and Services Tax [IGST] on ocean freight on reverse charge basis is unconstitutional thus voluntary payment of such IGST by the importer is refundable even after limitation period.
Facts- The petitioner has imported Bituminous Coal from foreign suppliers after payment of customs duty and IGST on the import of such goods.
In terms of Notification 8/2017 read with Notification No.10/2017, the petitioner in his capacity as importers, paid IGST at 5% on reverse charge basis on the ocean freight paid for services of transportation of goods by a vessel by up to the customs clearance station in India, by a person located in a non-taxable territory to a person located in a non-taxable territory. Although, the petitioner was not the recipient of such services, due to the deeming fiction created by Sr.No.10 of Notification No. 10/2017, the liability to discharge such tax was affixed on the importer. Thus, during February 2019, the petitioner paid IGST amounting to goods up to the customs clearing station in India.
On 23.01.2020, this Court in the case of M/s Mohit Minerals Pvt. Ltd. v. Union of India & Ors., reported at 2020 (1) TMI 974, struck down Notification Nos.8/2017 and 10/2017 as unconstitutional.
