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2024 (3) TMI 1265 - HC - GSTJurisdiction to issue SCN - Ocean Freight - contention of the petitioner is to the effect that, what has been sought to be invoked by the Designated Officer is the Notification No. 8/2017-Integrated Tax (Rate) dated 28/6/2017 in issuing the show cause notice which itself has been struck down by the Division Bench of Gujarat High Court in the case MOHIT MINERALS PVT LTD VERSUS UNION OF INDIA & 1 OTHER [2020 (1) TMI 974 - GUJARAT HIGH COURT] - HELD THAT:- In Mohit Minerals the petitioner’s case before the High Court of Gujarat was a case where the petitioner was importing coal from various countries on FOB (Free on Board) and CIF (sum of Cost, Insurance and Freight) basis, as clearly set out in paragraph 15 of the said decision. This Court had an occasion to consider a similar case in Liberty Oil Mills Vs. Union of India [2023 (2) TMI 177 - BOMBAY HIGH COURT], where a challenge akin to the challenge in the present proceedings, was made to the show cause notice dated 31 March 2019 calling upon the petitioner to show cause as to why Integrated Goods and Service Tax may not be recovered under Section 74(1) of the Central Goods and Services Act, 2017 (for short ‘CGST Act’) alongwith interest and penalty on the ocean trade service. This Court following the decision of the High Court of Gujarat in Mohit Minerals (supra) as also the decision of the Supreme Court in Union of India Vs. Mohit Minerals Pvt. Ltd. [2020 (1) TMI 974 - GUJARAT HIGH COURT] allowed the petitioner’s proceedings, setting aside the show cause notice. The present petition also needs to be allowed considering the decision in the case of Mohit Minerals. Also, a submission being made on behalf of the respondent is noted namely that the decision in Mohit Minerals needs to be applied only in respect of the cases which involve the contracts on CIF basis and not FOB contracts. It is submitted that in the present case the show cause notice has been issued referring to Notification No. 8/2017-Integrated Tax (Rate) dated 28-6-2017 as the contract was a FOB contract. It is found that such argument is totally untenable inasmuch as the case in Mohit Minerals before the High Court of Gujarat, was a case which involved both categories of contract namely CIF and FOB, which was noted in paragraph 57 of the judgment of the High Court of Gujarat. Petition allowed.
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