Case Law Details
Plus Max Duty Free (Madurai) Pvt. Ltd. Vs Principal Chief Commissioner of GST & Central Excise (Madras High Court)
Introduction: The Madras High Court recently delivered a significant judgment in the case of Plus Max Duty Free (Madurai) Pvt. Ltd. vs Principal Chief Commissioner of GST & Central Excise. The court addressed the issue of Goods and Services Tax (GST) on amounts paid by the petitioner, who operates Duty Free Shops in various airports across the country.
Detailed Analysis: The petitioner sought a Writ of Declaration to declare that no GST is payable on the amounts paid under a License Agreement dated 05.04.2017. Three writ petitions were filed, including one for a Writ of Mandamus to refund the GST levied and collected, and another to refrain from further collection of GST.
The petitioner, a subsidiary of a Malaysian company with extensive experience in running Duty Free Shops worldwide, leased premises under the agreement. Initially paying service tax at 15%, the petitioner believed the license fee, akin to rental, was subject to service taxes.
However, the Central Excise and Service Tax Appellate Tribunal’s order in 2017 clarified that no service tax can be levied on Duty Free Shops situated beyond the customs frontier. Despite this, the GST Department asserted that sales in Duty Free Shops constituted interstate supply, subject to Integrated Goods and Services Tax (IGST).
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