IGST on Ocean Freight: Gujarat HC orders Refund along with Interest [Read Order]

A division bench of the Gujarat High Court comprising Justice A.J.Desai and Justice Bhargav D. Karia has allowed IGST refund alongwith interest in the light of the recent Supreme Court decision in Mohit Minerals v. Union of India.

The applicant, M/s Adi Enterprises 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%.

The applicant approached the High Court after the Apex Court ruling and sought for necessary direction to be issued to the GST department to refund the amount of tax already paid by the applicant.

Allowing the application, the division bench held that “We have heard learned advocates appearing for the respective parties and considered the decision of the Hon'ble Apex Court upholding the decision of the Division Bench of this Court rendered in group of writ petitions, referred to herein above. In view of the above, we are of the opinion that the present application requires consideration and hence, the same is allowed in terms of prayer 6 (a). The respondents are hereby directed to grant refund of the amount of IGST already paid by the applicants pursuant to the Entry No.10 of Notification No.10/2017-IGST (Rate) dated 28.6.2017 along with statutory rate of interest on such refund within a period of four weeks from the date of submission of necessary documents by the applicants. Rule is made absolute.”

To Read the full text of the Order CLICK HERE

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