GU Shipping India Pvt Ltd. Vs Assistant Commissioner of CGST and Central Excise (Madras High Court)
Madras High Court held that it is not justifiable to impose disproportionate liability under section 74 of the respective GST enactments merely because Input Tax Credit was wrongly availed/ utilized. Accordingly, writ petition partly allowed.
Facts- The petitioner has preferred the present petition. The allegation against the petitioner was that during the period from July 2017 to January 2018 (up to 25.01.2018), the petitioner made a supply of services viz. Freight and Leasing / Renting of the Vessels with Crew Members by classifying the services under HSN 996602 and paid 18% GST without availing ITC as per Serial No.10(ii) of Notification No.11/2017-Central Tax(Rate) dated 28.06.2017
However, by amendment to the above notification from 25.01.2018, the petitioner started discharging tax at 5% for renting vessels as per Serial No.10, Column 3 to the above notification for the “Time charter of vessels for transport of goods”. Thus, it was stated that the petitioner continued to avail input tax credit wrongly and was, therefore, not eligible to avail the benefit of the above Serial No.10(ii) ofNotification No.11/2017-Central Tax(Rate) dated 28.06.2017 .
By the impugned order, it has been concluded that the petitioner will be liable to tax in terms of Serial No.10(iii) to the above Notification at 18%.
