Patanjali Foods Ltd. Vs Union of India & Anr. (Gujarat High Court)
The petition was filed challenging an order dated 1 May 2025 by which the authorities rejected the petitioner’s refund claim for Integrated Goods and Services Tax (IGST) amounting to ₹40,30,715. The refund related to IGST paid on ocean freight in respect of imports made under Cost, Insurance and Freight (CIF) contracts. The rejection was based on the ground that the refund application was time-barred under Section 54(1) of the GST Act.
The petitioner is a public limited company registered under the Central Goods and Services Tax Act, 2017 and engaged in the manufacturing, processing, refining and trading of edible oils, vanaspati, bakery fats, soya food products and allied commodities. During the financial year 2018-19, the petitioner imported crude palm oil under CIF contracts. At the time of clearance of goods for home consumption, the petitioner paid customs duty and IGST on the total CIF value.
Section 5(3) of the IGST Act empowers the Government to notify certain categories of supply of goods or services for payment of tax under the reverse charge mechanism. Under Notification No. 10 of 2017 dated 28 June 2017, IGST on ocean freight for transportation of goods by vessel from outside India to India was required to be paid by the importer on reverse charge basis.
