Torrent Power Ltd. Vs Union of India & Anr. (Gujarat High Court)
Amount paid towards ocean freight to be refunded to petitioner who will pay to consumer who suffered burden of tax
Gujarat High Court held that amount paid (IGST and service tax) towards ocean freight which is held unconstitutional is liable to be refunded to Torrent Power (Petitioner) and ultimately petitioner is directed to refund the same to consumers who have suffered the burden of tax.
Facts- The petitioner is engaged in the generation and distribution of power was duly granted electricity distribution license under the Electricity Act, 2003. The petitioner had imported natural gas from outside the Country which is used in generation of power and some miscellaneous items for use in the course of the business on CIF (Cost Insurance and Freight) basis. While importing the goods, the petitioner filed bill of entry for home consumption and at the time of clearance of the goods for home consumption, the petitioner paid customs duty, countervailing duty (CVD) and other applicable duty on total value of the goods i.e. the CIF value.
The category of supply of service as mentioned in the Entry No.10 of the Notification No.10 of 2017-IGST (Rate) dated 28th June, 2017 fastens the liability upon the petitioner to pay the IGST on reverse charge basis for the services supplied by the person located in non-taxable territory by way of transportation of goods by a vessel from the place outside India up to the customs station of clearance in India.
