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2024 (3) TMI 241 - BOMBAY HIGH COURTExemption from service tax - ocean freight - Services by way of transportation of goods - reverse charge mechanism - It is the case of the Petitioner that transportation of goods in a vessel provided by a person located in non-taxable territory to the person located in non-taxable territory was exempted from service tax available vide Sl. No. 34 of the Notification No. 25/2012-ST and the same was made inapplicable w.e.f. 22nd January 2017, vide Notification No. 1/2017-ST dated 12.01.2017 - HELD THAT:- The division bench of the Gujarat High Court in SAL Steel Ltd. [2019 (9) TMI 1315 - GUJARAT HIGH COURT] had considered the challenge to the impugned notifications in the context of the service tax on transportation of goods by a vessel from a place outside India. The impugned provisions were held ultra vires of Section 64, 65(B), 44, 66(B), 67 and 68 and 94 of the Finance Act, 1994. It was held that importers in CIF contracts were neither service providers nor service receivers in respect of transport of goods by vessel from place outside India, and that service tax cannot be recovered from third party who is neither the service provider nor the service receiver. Similar issue as fell for consideration before the Madras High Court in the case of Chennai & Ennore Ports Steamer Agents Association Vs. Union of India [2023 (5) TMI 899 - MADRAS HIGH COURT], in such decision the Court had considered the decision of the Division Bench of the Gujarat High Court in SAL Steel Ltd. in considering the issue namely, whether the members of the Petitioner were liable to pay service tax on the service of ocean freight. Rejecting the case of the Revenue and accepting the case of the Assessee, the Madras High Court, making the following observations, allowed the Writ Petitions by setting aside the show cause notices issued to the respective Petitioners. The impugned Notifications at Exhibits-A and F are held to be illegal as held by the Gujarat High Court in SAL Steel Ltd - Petitioner would accordingly be entitled to the refund of duty, however, subject to the Petitioner filing the refund application which would be required to be decided in accordance with law including on the principles unjust enrichment - Petition disposed off.
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