The Gujarat High Court has Gujarat HC directed the Government to refund the Integrated Goods and Services Tax (IGST) paid on ocean freight pursuant to unconstitutional Notification.
The petitioner, M/S Louis Dreyfus Company India Private Limited is engaged in the business of processing edible oils and coffee, etc. has filed Special Civil Application before the High Court praying to direct the respondents to refund the Integrated Goods and Services Tax (IGST) calculated on the amount of ocean freight charges with interest.
The counsel for the petitioner submitted that in Mohit Minerals Pvt. Ltd. vs. Union of India, Notification Nos. 8 of 2017 and 10 of 2017 read with corrigendum came up for consideration for their validity before the jurisdictional High Court and the Court has held that the said notifications were unconstitutional and ultra vires the statute.
The petitioner by relying on the decision ADI Enterprises vs. Union of India further submitted that refund of the IGST paid pursuant to the aforementioned Notifications, the court directed the department to refund the amount of IGST already paid by the applicants pursuant to Entry No.10 of Notification No. 10 of 2017.
The Coram of Mr. Justice N.V.Anjaria and Mr. Justice Bhargav D. Karia has held that “in view of the decision in Mohit Minerals Pvt. Ltd. (supra), since the impugned Notifications have already been declared as ultra vires, present petition deserves to be allowed” and directed the government that if any IGST amount is collected, the same shall be refunded within six weeks along with the statutory rate of interest.
Mr. Parth appeared on behalf of the petitioner and Mr. Devang Vyas and Mr. Nikunt K Raval
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