Gujarat HC Quashes Notifications For Levying IGST On Ocean Freight Services [Read Judgment]
4 years, 11 months ago

Gujarat HC Quashes Notifications For Levying IGST On Ocean Freight Services [Read Judgment]

Live Law  

In a landmark judgment, the Gujarat High Court has held that imposition of Integrated Goods and Services Tax on ocean freight for services provided by a person in a non-taxable territory was impermissible and quashed two IGST notifications as ultra vires. "We have reached the conclusion 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 by law", held a division bench comprising Justices J B Pardiwala and A C Rao. The Central Government introduced Notification No.8/2017 Integrated Tax wherein the IGST at the rate of 5% was levied on the service of transport of goods in a vessel including the services provided or agreed to be provided by a person located in a non-taxable territory to a person located in a non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs stations of clearance in India. As stated above, the supply of services provided by a person in a non-taxable territory to a person in a non-taxable territory by way of transportation of goods in a vessel from a place outside India to the place of customs station of clearance in India is not an inter-state supply as per the provisions of Section 7 of the IGST Act.

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History of this topic

GST | Delhi HC Orders Refund Of Service Tax Paid On Ocean Freight, Cites Gujarat HC Judgment Declaring It Unconstitutional
2 weeks, 6 days ago

GST | Delhi HC Orders Refund Of Service Tax Paid On Ocean Freight, Cites Gujarat HC Judgment Declaring It Unconstitutional

Live Law  

The Delhi High Court on Thursday ordered the GST Department to refund the service tax paid by certain importers on ocean freight. The division bench also relied on judgment rendered by the Ahmedabad Bench of the CESTAT in Commissioner of Service Tax vs. Kiri Dyes and Chemicals Limited where it was held, “the issue whether Ocean Freight/ Sea Transportation service …

Trader Not Liable To Pay Social Welfare Surcharge On Customs Duty Which Is Exempted Under MEIS Scheme: Orissa High Court
1 month, 1 week ago

Trader Not Liable To Pay Social Welfare Surcharge On Customs Duty Which Is Exempted Under MEIS Scheme: Orissa High Court

Live Law  

The Orissa High Court has held that Social Welfare Surcharge leviable on customs duty will be nil where a trader is exempted from paying customs duty under the Merchandise Exports from India Scheme. It relied on Union of India v. Modi Rubber Ltd. where the issue before the Supreme Court was- where there had been partial exemption of duty payable, …

Gujarat Value Added Tax Act | 'Purchase Price' Definition Doesn't Include Value Added Tax : Supreme Court
5 months ago

Gujarat Value Added Tax Act | 'Purchase Price' Definition Doesn't Include Value Added Tax : Supreme Court

Live Law  

While Interpreting the definition of the 'Purchase Price' under the Gujarat Value Added Tax Act of 2003, the Supreme Court on Friday observed that the value-added tax would not be included in the definition of the purchase price. The Court held that no value-added tax would be added to the purchase price to calculate tax as the same is not …

Service Tax Not Liable To Be Paid On Ocean Freight/Sea Transportation Services: Bombay High Court
9 months, 4 weeks ago

Service Tax Not Liable To Be Paid On Ocean Freight/Sea Transportation Services: Bombay High Court

Live Law  

The Bombay High Court has held that service tax is not liable to be paid on ocean freight or sea transportation services.The bench of Justice G. S. Kulkarni and Justice Firdosh P. Pooniwalla has relied on the decision of the Gujarat High Court in the case of SAL Steel Ltd. vs.. Union of India, in which it was held that …

Service Tax Not Leviable On Service For Transmission Of Electricity By GETCO: CESTAT
11 months ago

Service Tax Not Leviable On Service For Transmission Of Electricity By GETCO: CESTAT

Live Law  

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal has held that service tax is not leviable for the erection of bays, substations, and transmission lines provided by Gujarat Energy Transmission Corporation Limited to service recipients.The bench of Ramesh Nair and C.L. The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal has held that service tax …

Indirect Tax Cases Monthly Round Up: January 2024
11 months ago

Indirect Tax Cases Monthly Round Up: January 2024

Live Law  

Supreme Court Hiring Of Motor Vehicle Or Cranes Is Not 'Sale Of Goods' If Control Over Equipment Is Retained By Contractor, VAT Can't Be Levied: Supreme Court Case Title: M/s. Case Title: Murli Packers Through Its Proprietor Rakesh Kumar Jain vs. State Of U P Through Secretary, Institutional Finance Case Citation: 2024 LiveLaw 52 On Wednesday, the Allahabad High Court …

Tax Cases Weekly Round-Up: 31 December 2023 To 6 January 2024
1 year ago

Tax Cases Weekly Round-Up: 31 December 2023 To 6 January 2024

Live Law  

Supreme Court Case Title: State of Uttar Pradesh and Anr. Madras High Court Case Title: The Principal Commissioner of Income Tax Versus K.M.Mammen Citation: 2024 LiveLaw 2 The bench of Justice R. Mahdevan and Justice Mohammed Shaffiq, while upholding the order passed by the single judge, held that since the penalty was reduced from 300% to 100% of the tax …

IGST Refund On Exported Goods Being Zero Rated Supplies Admissible As Excess Drawback Repaid: Gujarat High Court
1 year, 1 month ago

IGST Refund On Exported Goods Being Zero Rated Supplies Admissible As Excess Drawback Repaid: Gujarat High Court

Live Law  

The Gujarat High Court has ruled that the surplus drawback resulting from the utilization of the Cenvat Credit facility was repaid along with interest, and thus, the refund of Integrated Goods and Services Tax paid on goods and services for exported goods, classified as zero-rated supplies, is deemed eligible. The petitioner, ADF Foods Ltd., challenged the inaction on the part …

Gujarat High Court Orders Refund Of IGST With Interest In An Inadvertent Tax Payment Case
1 year, 5 months ago

Gujarat High Court Orders Refund Of IGST With Interest In An Inadvertent Tax Payment Case

Live Law  

The Gujarat High Court has directed the refund of the Integrated Goods and Service Tax amount, along with applicable interest, to a petitioner who inadvertently paid IGST at a higher rate than the concessional rate applicable.The petitioner, Tagros Chemicals India Pvt. The Gujarat High Court has directed the refund of the Integrated Goods and Service Tax amount, along with applicable …

Goods In Transit Can’t Be Treated As Non-Traceable In Presence Of Tax Invoice, E-Way Bill And Bilty: Allahabad High Court
1 year, 5 months ago

Goods In Transit Can’t Be Treated As Non-Traceable In Presence Of Tax Invoice, E-Way Bill And Bilty: Allahabad High Court

Live Law  

The Allahabad High Court has quashed the penalty order passed in Form MOU-09 under Section 129 of the Goods and Services Tax Act, 2017 on the grounds that the goods in transit were duly accompanied by the tax invoice, e-way bill, and bilty.The bench of Chief Justice Pritinker Diwaker and Justice Ashutosh Srivastava has relied on the decision of the …

Service Tax Exemption On Handling Of Agriculture Produce By A Cargo Handling Agency: CESTAT
1 year, 8 months ago

Service Tax Exemption On Handling Of Agriculture Produce By A Cargo Handling Agency: CESTAT

Live Law  

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal has held that service tax is exempted from the handling of agricultural produce by a cargo handling agency.The bench of Ramesh Nair and C.L. The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal has held that service tax is exempted from the handling of agricultural …

Service Tax Demand Can't Be Sustained On Ocean Freight Under RCM: CESTAT
2 years, 2 months ago

Service Tax Demand Can't Be Sustained On Ocean Freight Under RCM: CESTAT

Live Law  

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal has held that the service tax demand is not sustainable as the appellant has purchased fertilisers, which are their inputs, at cost, insurance, and freight value, which includes the ocean freight element.The appellant has paid custom duty on CIF value, which includes ocean freight, according to the. The …

Service Tax Exemption Available On Rendering Transmission Of Electricity: CESTAT
2 years, 3 months ago

Service Tax Exemption Available On Rendering Transmission Of Electricity: CESTAT

Live Law  

The Chattisgarh Customs, Excise and Service Tax Appellate Tribunal, consisting of Justice Dilip Gupta and P. Anjani Kumar, has held that the service tax exemption is available on the transmission of electricity.The appellant/assessee is in the business of manufacturing power transmission towers and parts and accessories. The Chattisgarh Customs, Excise and Service Tax Appellate Tribunal, consisting of Justice Dilip Gupta …

Gujarat High Court Directs CBIC To Refund IGST On Ocean Freight
2 years, 5 months ago

Gujarat High Court Directs CBIC To Refund IGST On Ocean Freight

Live Law  

The Gujarat High Court has directed the Central Board of Indirect Taxes and Customs to refund the Integrated Goods and Service Tax on ocean freight within six weeks along with the statutory rate of interest. The Gujarat High Court, in response to a writ case filed by Mohit Minerals Private Limited, ruled that the announcements placing the tax under the …

Gujarat High Court Weekly Round Up: June 20 To June 26, 2022
2 years, 6 months ago

Gujarat High Court Weekly Round Up: June 20 To June 26, 2022

Live Law  

NOMINAL INDEX Thakarshibhai Bhurabhai Jajal Versus Gujarat State Information Commissioner 2022 LiveLaw 227 Sadbhav Engineering Limited V/S Ghanshyambhai B Pandya & 1 Other 2022 LiveLaw 228 M/S. Ltd 2022 LiveLaw 230 Pratapdan Shamaldan Gadhv V/S State Of Gujarat 2022 LiveLaw 231 Nileshbhai Narayanbhai Mistry V/S State Of Gujarat 2022 LiveLaw 232 Ramilaben Vijaykumar Patel Versus Na 2022 LiveLaw 233 Anopsinh …

Gujarat High Court Directs Dept. To Refund IGST On Ocean Freight Along With The Interest
2 years, 6 months ago

Gujarat High Court Directs Dept. To Refund IGST On Ocean Freight Along With The Interest

Live Law  

The Gujarat High Court bench of Justice A.J. The applicants/petitioners have sought the direction to the respondents/department to grant a refund of the amount of IGST already paid by the applicants pursuant to Entry No.10 of Notification No.10/2017-IGST dated 28.6.2017 with appropriate interest on the refund. The applicant has challenged the vires of Entry No.10 of Notification No.10/2017-IGST dated 28.6.2017 …

Separate IGST On Indian Importers For Ocean Freight Against Concept Of "Composite Supply", Violates Section 8 CGST Act : Supreme Court
2 years, 7 months ago

Separate IGST On Indian Importers For Ocean Freight Against Concept Of "Composite Supply", Violates Section 8 CGST Act : Supreme Court

Live Law  

The Supreme Court has held when the Indian importer is liable to pay Integrated Goods and Services Tax on the 'composite supply', which includes supply of goods and supply of services of transportation, insurance, etc. Section 2 of the CGST Act defines 'composite supply' as under - " "composite supply" means a supply made by a taxable person to a …

How apex court gives ‘supreme’ relief to businesses by ending double taxation on ocean freight
2 years, 7 months ago

How apex court gives ‘supreme’ relief to businesses by ending double taxation on ocean freight

Firstpost  

The SC judgement should act as a catalyst for the GST Council to review all legacy circulars and rules and remove all anomalies in law, making compliance simple and taxpayer-friendly, along with complying with the basic principle of law and canons of taxation With the advent of Goods and Services Tax regime, Excise, Service Tax, and State VATs were subsumed …

Importers, govt. duel in Supreme Court over GST on ocean freight
2 years, 11 months ago

Importers, govt. duel in Supreme Court over GST on ocean freight

The Hindu  

The government is engaged in a pitched legal battle in the Supreme Court against importers over its decision to levy Integrated Goods and Services Tax on ocean freight on a reverse charge basis. A hearing set for January 11 was postponed after two Judges on the Bench took ill. At the centre of the spat are two notifications issued on …

GST On Intermediaries : Bombay High Court Delivers Split Verdict On Constitutionality Of Section 13(8)(b) IGST Act
3 years, 6 months ago

GST On Intermediaries : Bombay High Court Delivers Split Verdict On Constitutionality Of Section 13(8)(b) IGST Act

Live Law  

A division bench of the Bombay High Court has delivered a split verdict on the constitutionality of Section 13 of the IGST Act, which imposes GST liability on services provided by intermediaries to persons located outside India.While Justice Ujjal Bhuyan has held the provision to be unconstitutional, Justice Abhay Ahuja dissented. A division bench of the Bombay High Court has …

Gujarat High Court holds IGST on ocean freight ‘ultra vires’
4 years, 11 months ago

Gujarat High Court holds IGST on ocean freight ‘ultra vires’

The Hindu  

The High Court of Gujarat has declared the imposition of integrated goods and services tax on ocean freight as ultra vires and held that such a levy was not permissible under the law. “We have reached the conclusion that no tax is leviable under the integrated goods and services tax Act 2017 on ocean freight for the services provided by …

No GST on goods sold at duty free shops in Mumbai airport: Bombay HC
5 years, 2 months ago

No GST on goods sold at duty free shops in Mumbai airport: Bombay HC

Live Mint  

Mumbai: In major relief to duty free shops, the Bombay High Court has ruled that goods and services tax cannot be levied on products sold at the duty free shops in Mumbai airport. "In view of the above exemption read with the duty free allowance available under the Baggage Rules applicable to arriving passengers, neither customs duty nor IGST is …

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