2020 (1) TMI 1167 - HC - GST

Levy of GST on ocean freight - reverse charge - Vires of N/N. 8/2017 Integrated Tax (Rate) dated 28th June 2017 and the Entry 10 of the N/N. 10/2017 Integrated Tax (Rate) dated 28th June 2017 - HELD THAT - This Court in the case of MOHIT MINERALS PVT LTD VERSUS UNION OF INDIA 1 OTHER 2020 (1) TMI 974 - GUJARAT HIGH COURT where this Court declared the N/N. 8/2017 Integrated Tax (Rate) dated 28th June 2017 and the Entry 10 of the N/N.10/2017 Integrated Tax (Rate) dated 28th June 2017 are declared as ultra vires the Integrated Goods and Services Tax Act, 2017 on the ground of lack legislative competency. Petition disposed off.

Summary

Issues:
Challenge to impugned Notifications under Integrated Goods and Services Tax Act, 2017 - Legislative competency - Refund of IGST paid on ocean freight - Stay on impugned Notifications - Coercive action restraint during pendency of petition.

Analysis:

1. Challenge to Impugned Notifications: The writ applicant sought relief by challenging the impugned Notifications - Notification No. 8/2017 and Entry 10 of Notification No. 10/2017 under the Integrated Goods and Services Tax Act, 2017. The applicant argued that these notifications lacked legislative competency and were ultra vires the Act, rendering them unconstitutional. The applicant requested the High Court to issue a writ of certiorari, mandamus, or any appropriate writ to quash these notifications.

2. Refund of IGST on Ocean Freight: Another relief sought was the refund of the total amount of IGST paid on ocean freight by the petitioner for its coal imports. The applicant requested the court to direct the respondent authorities to refund this amount along with applicable interest until the disposal of the petition. This issue was crucial for the petitioner's financial interests and compliance with the tax laws.

3. Stay on Impugned Notifications: The applicant further requested the High Court to stay the operation of the impugned Notifications during the pendency of the petition. This stay was essential to prevent any adverse financial implications or obligations on the petitioner due to the operation of these notifications, which were already declared ultra vires in a previous judgment.

4. Coercive Action Restraint: Additionally, the applicant sought a writ to restrain respondent No. 1 and its officers from taking any coercive action measures against the petitioner and its officers during the pendency of the writ petition. This request aimed to protect the petitioner from any undue harassment or enforcement actions that could affect its operations or reputation.

5. Previous Judgment's Impact: The High Court referred to a previous judgment dated 23rd January 2020 in a related matter where it had declared the impugned Notifications as ultra vires the Integrated Goods and Services Tax Act, 2017 due to a lack of legislative competency. Based on this precedent and the circumstances, the Court disposed of the present petition without further adjudication, indicating that the relief sought by the applicant was granted in the earlier judgment.

In conclusion, the High Court's judgment in this case addressed multiple issues related to challenging impugned notifications, seeking a refund of IGST, requesting a stay on the notifications, and restraining coercive actions. The Court's decision was influenced by a previous judgment on the same matter, leading to the disposal of the present petition in favor of the applicant based on the declared ultra vires nature of the impugned Notifications.