Goods and Services Tax

Mohit Minerals Pvt Ltd Versus Union of India

2018 (2) TMI 770 – GUJARAT HIGH COURT – TMI – Levy GST on ocean freight whereas the value of import goods includes Ocean Freight. – Vires of N/N. 8/2017-Integrated Tax [Rate] dated 28th June 2017 and Entry 10 of the N/N. 10/2017-Integrated Tax [Rate] also dated 28th June 2017 – petitioner's grievance is that under the impugned Notifications, the petitioner is asked to pay tax at the prescribed rate all over again on the ocean freight – Counsel for the petitioner submitted that the impugned Notifications are ultra vires the Act and are in any case in exercise of excessive delegation of powers of subordinate legislation – Held that: – Notice and notice as to interim relief, returnable on 9th March 2018. – Special Civil Application No. 726 of

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to pay tax at the prescribed rate all over again on the ocean freight. The petitioner's challenge has principally three elements viz., [a] having paid the tax under IGST Act on the entire value of imports; inclusive of the ocean freight, the petitioner cannot be asked to pay tax on the ocean freight all over again under a different notification; [b] in case of CIF contracts, the service provider and service recipient both are outside the territory of India. No tax on such service can be collected even on reverse charge mechanism, and [c] in case of High Sea sales, the burden is cast on the petitioner as an importer whereas, the petitioner is not the recipient of the service at all. It is the petitioner's seller of goods on high sea

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