Mangalore Steamer Agents Association Vs Union of India (Karnataka High Court)
Karnataka High Court held that demand of service tax on ocean freight on import services is liable to be quashed since the petitioner are not the recipient of service for the purpose of notification no. 3/2017-ST dated 12.01.2017.
Facts- This writ petition is filed under Articles 226 and 227 of the Constitution of India praying to declare section 66C(2) of Chapter V of the Finance Act, 1994 (as amended) as null, void and ultra vires article 14, 19, 246, 248, 265. It is also prayed to quash circular no. 206/4/2017 service tax dated 13.04.2017.
Conclusion- Madras High Court in the case of The Chennai and Ennore Ports Steamer Agents Association Vs. Union of India and others, dated 28.03.2023 has held that service tax cannot be demanded from these petitioners as neither the “steamer agents” nor the “importers” in India are the recipient of service. They are not liable to pay tax. The other impugned notifications which were issued as a consequence of withdrawal of the exemption under Mega Exemption Notification No.25/2012-ST dated 20.6.2012 vide Notification No.1/2017-ST dated 12.1.2017 with effect from 22.1.2017, vide Notification No.1/2017-ST dated 12.1.2017 with effect from 22.1.2017 also cannot be challenged as challenge to the latter notification has to fail.
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