Hon’ble Gujarat HC, in the case of M/s Bharat Oman Refineries Limited, has directed the Government to refund the amount of IGST paid by taxpayer under RCM in respect of ocean freight.
In its judgment, Hon’ble HC has held that;
- The subject matter of the writ is levy of tax under IGST Act, 2017 on ocean freight, for 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 up to custom stations of clearance in India, read with Notification 10/2017-IGST dated June 28, 2017.
- The issue raised in the writ is squarely covered by the recent judgment of this Court in the case of M/s Mohit Minerals Private Limited v. Union of India & Ors. In Special Civil Application No. 726 of 2018 decided on January 23, 2020.
- In Mohit Minerals case, this Court has declared Notification 08/2017-IGST (Rate) dated June 28, 2017 and Entry 10 of Notification No. 10/2017-IGST dated June 28, 2017 as ultra vires IGST Act as the same lacked legislative competence. Accordingly, both of the above were held as unconstitutional.
- This writ also succeeds and is hereby allowed in the taxpayer’s favour. Also, Department is directed to refund the amount of IGST paid within a period of 6 weeks.
Also read: GST ON OCEAN FREIGHT- A TAX ADVENTURE, THAT FAILED | Reverse Charge
Source: Bharat Oman Refineries Limited v. Union of India (Gujarat HC) Special Civil Application 8881 of 2020
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