2020 (3) TMI 725 - HC - GST

Levy of IGST on Ocean Freight - HELD THAT - The issue is covered by the decision in the case of MOHIT MINERALS PVT LTD VERSUS UNION OF INDIA 1 OTHER 2020 (1) TMI 974 - GUJARAT HIGH COURT where it was held that No tax is leviable under the Integrated Goods and Services Tax Act, 2007, on the 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 and the levy and collection of tax of such ocean freight under the impugned Notifications is not permissible in law. Also, impugned Notification No.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, as they lack legislative competency. Petition allowed.

Summary

The Calcutta High Court allowed a writ petition challenging the constitutionality of a notification under the Integrated Goods and Services Tax Act, 2007, regarding the levy of tax on ocean freight for services provided by a person in a non-taxable territory. The judgment was based on a decision by the High Court of Gujarat. The petition was allowed as it was covered by the Gujarat High Court's decision.