2022 (8) TMI 403 - HC - GST

Refund of IGST - seeking direction to respondents to grant refund of the IGST paid by the petitioner pursuant to Entry No. 10 of N/N. 10 of 2017 dated 28.06.2017 in respect of which no input tax credit is availed by the petitioner with interest - HELD THAT - Similar issue came up for consideration before the co-ordinate Bench in ADI ENTERPRISES VERSUS UNION OF INDIA 2022 (6) TMI 849 - GUJARAT HIGH COURT , wherein the question was about refund of the IGST paid pursuant to the aforementioned Notifications. The court directed respondents to refund the amount of IGST already paid by the applicants pursuant to Entry No.10 of Notification No. 10 of 2017. In view of the decision in MOHIT MINERALS PVT LTD VERSUS UNION OF INDIA 1 OTHER 2020 (1) TMI 974 - GUJARAT HIGH COURT , since the impugned Notifications have already been declared as ultra vires, present petition deserves to be allowed. The claim for refund of the petitioner towards IGST is liable to be favourably considered - Petition allowed.

Summary

Issues:
Refund of IGST paid under Entry No. 10 of Notification No. 10 of 2017 dated 28.06.2017 without availing input tax credit.

Analysis:
The petitioner, a company engaged in printing and selling newspapers, imported newsprint on Cost and Freight (C & F) basis. The petitioner paid customs duty, countervailing duty, and other duties on the total C & F value at the time of clearance. The petitioner sought a refund of the IGST paid under Entry No. 10 of Notification No. 10 of 2017 without availing input tax credit through a petition under Article 226 of the Constitution of India.

The Notifications No. 8 of 2017 and No. 10 of 2017 dated 28.06.2017, along with a corrigendum dated 30.06.2017, levied IGST on inter-state supply of services involving transportation of goods by vessel. However, the validity of these notifications was challenged in previous cases, including Mohit Minerals Pvt. Ltd. vs. Union of India, where the court declared the notifications unconstitutional and ultra vires. This decision was followed in subsequent cases like Gokul Agro Resources Ltd. vs. UOI, Bharat Oman Refineries Ltd. vs. Union of India, and Comsol Energy Private Limited vs. State of Gujarat.

In the case of ADI Enterprises vs. Union of India, the court directed the refund of IGST paid under Entry No. 10 of Notification No. 10 of 2017. The court noted that the notifications were declared ultra vires and directed the respondents to refund the IGST amount along with statutory interest within a specified time frame. The present petition sought a similar outcome based on the previous judgments and the invalidity of the notifications.

Considering the precedent set by the previous judgments, the court found the impugned notifications to be ultra vires and allowed the present petition for a refund of IGST paid by the petitioner. The competent authority was directed to verify the refund amount and grant it along with statutory interest within eight weeks from the date of the order. Consequently, the petition was allowed in favor of the petitioner for the refund of IGST paid under Entry No. 10 of Notification No. 10 of 2017.