The Rajasthan High Court allowed the refund of Integrated Goods and Service Tax (IGST) on Ocean Freights.
The petitioner, Mahesh oil Products filed the petition under Article 226 of the Constitution of India seeking appropriate writ/order/direction to the effect declaring Sr. No. 9(ii) of the Notification No. 8/2017-Integrated Tax (Rate) dated 28.06.2017 to be unconstitutional and ultra-vires to the provisions of the Integrated Goods and Service Tax Act, 2017 to the extent it prescribes rate for levy of Integrated-tax on services by way of transportation of goods by a vessel from a place outside India, up to the customs station of clearance of India, where service provider i.e. supplier of service and service recipient i.e. the recipient of service both are located in nontaxable territory i.e. Outside India;
Mr. Prateek Gattani, counsel for the petitioner has submitted that the said reliefs claimed by the petitioner are covered by a decision given by the Gujarat High Court in the case of Mohit Minerals Private Limited vs. Union of India and Ors. wherein the impugned Notification dated 28th June 2017 and the Entry 10 of the Notification dated 28th June 2017 were declared as ultra vires the Integrated Goods and Services Tax Act, 2017, as they lack legislative competency. Both the Notifications are hereby declared to be unconstitutional.
Mr. Mukesh Rajpurohit, Additional Solicitor General on behalf of the respondents failed to controvert the fact that the issue involved in the present case is covered by decisions given by the Gujarat High Court relied upon by the learned counsel for the petitioner. However, submitted that the judgment passed by the Gujarat High Court in the case of Mohit Minerals Private Limited is under challenge before the Apex Court but the operation of the judgment has not stayed.
The division bench of Justice Vinit Kumar Mathur and Justice Sabina directed the respondent to sanction the refund of the IGST paid by the assessee pursuant to Entry No. 10 of the Notification No. 10/2017-IGST dated 28.06.2017 declared to be ultra vires in the case of Mohit Minerals Pvt. Ltd.IGST refund division bench of Justice Vinit Kumar Mathur and Justice Sabina directed the respondent to sanction the refund of the IGST paid by the assessee pursuant to Entry No. 10 of the Notification No. 10/2017-IGST dated 28.06.2017 declared to be ultra vires in the case of Mohit Minerals Pvt. Ltd.
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