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

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 (Rate) 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 (Rate) dated 28.6.2017 issued under the IGST Act, 2017.

According to Notification No. 8/2017-Integrated Tax (Rate) dated 28.06.2017, services provided by a person located in non-taxable territory to another person located in non-taxable territory by way of transportation of goods by a vessel from a location outside India up to the customs station of clearance in India will be taxable at a rate of 5%.

Following that, the Central Government issued Notification No.10 of 2017– Integrated Tax (Rate) dated June 28, 2017, in which the Central Government notified that for the category of service provided at Serial No.10 to the Notification dated June 28, 2017. The recipient of service shall be the importer as defined in clause 2 (26) of the Customs Act located in the taxable territory.

The applicant contended that the Division Bench had passed the order declaring Entry No.10 of Notification No.10/2017-IGST (Rate) dated 28.6.2017 as ultra vires the GST Act.

"The respondents are hereby directed 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 (Rate) dated 28.6.2017 along with a statutory rate of interest on such refund within a period of four weeks from the date of submission of necessary documents by the applicants. The rule is made absolute," the court said.

Case Title: ADI Enterprises Versus Union Of India

Citation: R/SPECIAL CIVIL APPLICATION NO.10479 of 2019

Citation: 2022 LiveLaw (Guj) 242

Counsel For Applicant: Advocate Uchit N Sheth

Counsel For Respondent: Advocate Priyank P. Lodha

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