TaxTMI 
TaxTMI 
2024 (12) TMI 1118
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....3,13,243/- as recipient of services (RCM) i.e, on reverse charge mechanism for service of transportation of goods by vessel from the place outside India up to the customs station of clearance in India, relating service or import of goods in terms of Section 5(3) of IGST Act, 2017 read with Notification No.10/2017-Integrated Tax (Rate). 2. The respondent has considered the decision of the Gujarat High Court in the case of Mohit Minerals Vs. Union of India 2020 (1) TMI 974, wherein, the Gujarat High Court has struck down the Notification No.8/2017 dated 28.06.2017 and Entry 10 of the Notification No.10/2017 dated 28.06.2017 as being unconstitutional and ultra vires of the IGST Act. The respondent however has noted that the Department has fil....
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....f tax under reverse charge on ocean freight, I find the show cause notice alleges payment of interest in terms of Section 50(1) of the CGST Act, 2017 and for easy reference, I give below the legal provisions contained in the Section - 50.Interest on delayed payment of tax- Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen per cent., as may be notified by the Government on the recommendations of the Council: [Provided that the interest on tax pay....
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....ed and the levy is imposed on the bundle of supplies altogether. This finds specific mention in the illustration provided under Section 2(30) of CGST Act, where the principal supply is that of goods. Thus, the intent of the Parliament was that a transaction which includes different aspects of supply of goods or services and which are naturally bundled together, must be taxed as a composite supply. 178. It is true that in this case, the first leg of the transaction between the foreign exporter and the Indian importer is a composite supply, while the second leg, between the foreign exporter and the shipping line may, from a perspective, be regarded as a standalone transaction. Both of them are independent transactions and ordinarily, the IG....
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....g the main plank of its submission now by contending that the two legs of the transaction are separate standalone agreements. That would imply, that while on the one hand the Union Government seeks to levy tax on the Indian importer by going beyond the text of the contract between the foreign shipping line and foreign exporter (for the purpose of identifying the Indian importer as the recipient of services), on the other hand, as far as the submissions on composite supply are concerned, the Union Government urges that the contracts must be viewed as separate transactions, operating in silos. We are unable to subscribe to this view. The Union of India cannot be heard to urge arguments of convenience - treating the two legs of the transaction....