TMI Blog2021 (3) TMI 1289X X X X Extracts X X X X X X X X Extracts X X X X ..... side India up-to the customs station in India for the importer and therefore, he is directly or indirectly the recipient of service - the CIF value is adopted under Customs Valuation Rules for the purpose of calculation of Customs duty on 'Goods' whereas the GST is being demanded, under reverse charge mechanism, only for the service portion involved in the transaction. When the GST has been paid on the freight in the case of indigenous supplies, whether the supplier is required to pay again GST on the freight under RCM? - HELD THAT:- The Notification No. 13/2017- CT (Rate) dated 28.06.2017 (as amended) is squarely applicable on the Appellant and they are liable to pay the GST on the freight paid, under the reverse charge mechanism. As regard to the double taxation we are in unison with the Advance Ruling Authority that this is a revenue neutral exercise, having no additional financial impact on the appellant and it is outside the purview of the Advance Ruling Authority. - UP AAAR 14/2021 - - - Dated:- 10-3-2021 - SHRI AJAY DIXIT, AND SMT. AMRITA SONI, MEMBER (Proceedings under Section 101 of the Central Goods and Service Tax Act, 2017 and Uttar Pradesh Goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated Tax (Rate) dated 28.06.2017, as amended. 5) Being aggrieved with the Order No. 63/2020 dated 10.07.2020 , the Appellant filed this appeal application before us. Grounds of appeal submitted by the Appellant:- 6) The Appellant made the following submissions: 6.1) Citing Hon'ble Gujarat High Court Order, in the case of M/s Mohit Minerals Pvt Limited Vs. UOI, the Appellant has contended that by virtue of Section 5(3) of the IGST Act, the liability to pay tax can be shifted from provider of supply to the recipient on reverse charge basis. However, as per the impugned Entry No. 10 of the Notification No. 10/2017-IT (Rate), the liability has been shifted on the importer and not on the recipient and thus the entry is ultra virus to Section 5(3). 6.2) No tax is leviable under the IGST Act on Ocean freight for the services provided by a person located in a non-taxable territory by way of transportation of goods by a vessel from a place outside India upto the customs station of clearance in India. 6.3) The goods imported on CIF basis, importer is nowhere connected with ocean freight services provided by freight forwarder and it can be constructed that sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ight is included in the value of the imported goods, whether any further GST liability is there under RCM . 10) In this regard we observe that the service, supplied by the foreign shipping entity of transportation of goods in a vessel to a port in India, is an 'inter-state supply' in terms of section 7 of the IGST Act, 2017. Further, the Notification No. 10/2017- Integrated Tax (Rate) dated 28.06.2017 (as amended), issued in terms of Sub-Section (3) of Section 5 of the IGST Act, 2017, specifies the person liable to pay tax under reverse charge mechanism. 11) The Entry No.10 of the Notification No. 10/2017- Integrated Tax (Rate) dated 28.06.2017 (as amended) reads as under:- SL. No. Category of Supply of Services Supplier of service Recipient of service 10 Services supplied by a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India. A person located in non-taxable territory Importer, as defined in clause (26) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nded). As per the entry no. 01 of the said Notification:- SL.No. Category of Supply of Services Supply of Services Recipient of service 1 Supply of Services by a goods transport agency (GTA) in respect of transportation of goods by road to- a. Any factory registered under or governed by the Factories Act, 1948 (63 of 1948);or b. any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; or c. any co-operative society established by or under any law; or d. any person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act; or e. any body corporate established, by or under any law; or f. any partnership firm whether registered or not under any law including of persons; or g. (g) any causal taxable persons. Goods Transport Agency (GTA) a. Any factory re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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