The Range Forest Officer vs. Lalitha Muraleedharan
Held
The High Court held that the supply of goods to a SEZ unit, irrespective of its location, is an inter-State supply and a 'zero-rated supply' under the IGST Act. Therefore, the demand for 18% IGST on the sandalwood purchased by the SEZ unit was unsustainable.
Facts
The Kerala Forest Department auctioned sandalwood, and the successful bidder, a Special Economic Zone (SEZ) unit located in Tamil Nadu, was demanded to pay 18% Integrated Goods and Services Tax (IGST). The SEZ unit challenged this demand, arguing that supplies to SEZ units are zero-rated.
Key Issues
Whether the supply of goods from a State to a Special Economic Zone (SEZ) unit in another State constitutes an inter-State supply and a 'zero-rated supply' under the IGST Act, thereby exempting it from IGST liability.
Sections Cited
Integrated Goods and Services Tax Act, 2017, Section 5, Section 7, Section 7(5)(b), Section 8, Section 8(1), Section 8(1) proviso (i), Section 10, Section 16, Section 16(1), Section 16(1)(b)
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Heard together (2 matters)
Read from the judgment's own cause title. This page is filed under one of them.
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE C.K.ABDUL REHIM & THE HONOURABLE MR.JUSTICE T.V.ANILKUMAR FRIDAY, THE 06TH DAY OF DECEMBER 2019/ 15TH AGRAHAYANA, 1941 WA.No.2417 OF 2019 AGAINST THE JUDGMENT IN WP(C) 24675/2018(H) OF THIS COURT APPELLANTS/RESPONDENTS: 1 THE RANGE FOREST OFFICER FOREST RANGE OFFICE, MARAYOOR RANGE, MARAYOOR, IDUKKI-685 620. 2 THE PRINCIPAL CHIEF CONSERVATOR OF FORESTS, FOREST LAND AND RESOURCES, FOREST HEADQUARTERS, THIRUVANANTHAPURAM-695 014. 3 THE COMMISSIONER OF STATE TAX, STATE GST DEPARTMENT, KERALA, TAX TOWERS, KILLIPALAM, KARAMANA P.O., THIRUVANANTHAPURAM-695 002. BY SR. GOVERNMENT PLEADER SRI. MOHAMMED RAFIQ RESPONDENT/PETITIONER: LALITHA MURALEEDHARAN PROPRIETRIX, SAI LALITH FRAGRANCE, PLOT NO.B- 25, PHASE II, MADRAS EXPORT PROCESSING ZONE, THAMBARAM, CHENNAI-45. THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 06.12.2019, ALONG WITH WA.2425/2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WA.2417/2019 and WA.2425/2019 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE C.K.ABDUL REHIM & THE HONOURABLE MR.JUSTICE T.V.ANILKUMAR FRIDAY, THE 06TH DAY OF DECEMBER 2019 /15T
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