Writ filed in Gujarat HC on Double Levy of IGST on Ocean Freight: HC issues notice to Govt.
Warning: Undefined variable $show_all_cats in /home/taxguru/public_html/wp-content/themes/tgv5/single.php on line 61
Income Tax |
Warning: Undefined variable $show_all_types in /home/taxguru/public_html/wp-content/themes/tgv5/single.php on line 69
Judiciary
Warning: Undefined variable $all_cats in /home/taxguru/public_html/wp-content/themes/tgv5/single.php on line 78
Case Law Details
Warning: Undefined array key 3 in /home/taxguru/public_html/wp-content/themes/tgv5/single.php on line 91
Mohit Minerals Pvt Ltd. Vs Union of India (Gujarat High Court)
The petitioner Mohit Minerals Pvt Ltd. has challenged vires of Notification No. 8/2017-Integrated Tax [Rate] dated 28th June 2017 and Entry 10 of the Notification No. 10/2017-Integrated Tax [Rate] also dated 28th June 2017. The petitioner is an importer of non-cooking coal and on such imports, the petitioner pays Custom duty, the value of which includes Ocean Freight. On the same valuation, the petitioner also pays tax under the Integrated Goods & Service Tax Act, 2017 [“IGST Act” for short]. The petitioner’s grievance is that under the impugned Notifications, the petitioner is asked to pay tax at the prescribed rate all over again on the ocean freight. The petitioner’s challenge has principally three elements viz.,
[a] having paid the tax under IGST Act on the entire value of imports; inclusive of the ocean freight, the petitioner cannot be asked to pay tax on the ocean freight all over again under a different notification;
[b] in case of CIF contracts, the service provider and service recipient both are outside the territory of India. No tax on such service can be collected even on reverse charge mechanism, and
[c] in case of High Sea sales, the burden is cast on the petitioner as an importer whereas, the petitioner is not the recipient of the service at all. It is the petitioner’s seller of goods on high sea basis who has received the services from the exporter/ transporter.
Counsel for the petitioner submitted Advocate JK Mittal that the impugned Notifications are ultra vires the Act and are in any case in exercise of excessive delegation of powers of subordinate legislation.
Notice and notice as to interim relief, returnable on 9th March 2018.
Direct service is permitted.
Read Final Judgment in above case which was delivered on 23.01.2020- Mohit Mineral Pvt. Ltd. v. UOI [Special Civil Application No. 726/2018 decided on January 23, 2020
What is the current status of this case