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2023 (4) TMI 423 - HC - GSTLiability of IGST is imposed on the Petitioner on the amount of ocean freight charges - Constitutional validity of N/N. 10/2017- Integrated Tax (Rate) dated 28.06.2017; (2) Notification No. 8/2017-Integrated Tax (Rate) dated 28.06.2017 read with Corrigendum dated 30.06.2017; and (3) Rule 13(9) of the Integrated Goods and Services Tax Act, 2017 - Place of Provision Rules - constitutional validity of Sections 68(2) and Section 66 of the Finance Act, 1994 - recovery of Service Tax / IGST on the amount of ocean freight charges from the Petitioner. HELD THAT:- Insofar as the levy of tax under IGST is concerned, concededly, the same is covered in favour of the petitioner by the decision of the Hon’ble Supreme Court in UNION OF INDIA & ANR. VERSUS M/S MOHIT MINERALS PVT. LTD. THROUGH DIRECTOR [2022 (5) TMI 968 - SUPREME COURT] where it was held that The impugned levy imposed on the ‘service’ aspect of the transaction is in violation of the principle of ‘composite supply’ enshrined under Section 2(30) read with Section 8 of the CGST Act. Since the Indian importer is liable to pay IGST on the ‘composite supply’, comprising of supply of goods and supply of services of transportation, insurance, etc. in a CIF contract, a separate levy on the Indian importer for the ‘supply of services’ by the shipping line would be in violation of Section 8 of the CGST Act. Levy of Service tax - HELD THAT:- The learned counsel for the petitioner states that an Enquiry Notice was issued but no further action has been taken by the Department for levy of service tax - Petitioner submits that the present petition be disposed of with liberty for the petitioner to challenge the levy of service tax on ocean freight in the event, any further action is taken by the concerned Department for assessing or recovering any such levy. The present petition is disposed of with liberty to the petitioner to apply afresh in the event any steps are taken by the respondents for assessing or recovering service tax on ocean freight.
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