Integrated Tax on Imported Services Valid Only Under IGST Act Section 5(1), Not as Additional Customs Duty

The HC held that an integrated tax on imported services can only be imposed under Section 5(1) of the IGST Act, and a service once classified cannot be recharacterized. Section 3(7) of the Customs Tariff Act cannot be interpreted as creating an independent levy but is part of the machinery for GST collection. The court rejected the government's attempt to levy additional customs duty on imported services that were already subject to IGST, finding this would impinge upon powers conferred by Articles 246A and 269A. Notification No. 36/2021 was quashed to the extent it purported to levy an additional duty beyond IGST, as such dual taxation was deemed unconstitutional. .....

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