2022 (10) TMI 247 - HC - GST

Refund claim - HELD THAT - The Petitioner is permitted to apply for refund and direct the concerned Respondents to process and dispose of its application in accord with law as expeditiously as possible and in any case not later than eight weeks from the date of its receipt. Petition disposed off.

Summary

Issues:
1. Interpretation of legislative competency and constitutionality regarding the imposition of IGST on ocean freight in case of CIF Contracts.
2. Validity of imposing IGST on ocean freight when IGST has already been paid on CIF value.
3. Process and timeline for the Petitioner to apply for refund and the obligation of the Respondents to process the application.

Analysis:
1. The judgment addresses the issue of legislative competency and constitutionality concerning the imposition of IGST on ocean freight in CIF Contracts. The court declares that further imposition of IGST on ocean freight lacks legislative competency and is ultra vires to the IGST Act, 2017, hence unconstitutional. The court makes the rule absolute in terms of the prayer clauses related to this issue.

2. The judgment also examines the validity of imposing IGST on ocean freight when IGST has already been paid on CIF value. The court rules that the payment of IGST on ocean freight again is not payable when IGST has already been paid on CIF value. The court makes the rule absolute in terms of the prayer clauses related to this issue as well.

3. Regarding the process and timeline for the Petitioner to apply for a refund, the judgment allows the Petitioner to apply for a refund, which will be processed in accordance with the law within eight weeks from the date of its receipt. The court directs the concerned Respondents to dispose of the refund application as expeditiously as possible, not later than eight weeks from the date of its receipt. The petition is disposed of with no order for costs, concluding the legal proceedings comprehensively.