M/S. Emami Agrotech LTD & Anr vs. Union Of INDIA & Ors
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The petitioners, M/s. Emami Agrotech Limited & Anr., challenged a demand for Integrated Goods and Services Tax (IGST) levied on ocean freight. The services involved transportation of goods by vessel from outside India to the customs station of clearance in India, provided to a person located in a non-taxable territory. The specific tax period is not mentioned. The challenge is against the levy of IGST by the revenue authorities. Both parties jointly submitted that the issue is now settled by higher judicial pronouncements.
Held
The Court held that no tax is leviable under the Integrated Goods and Services Tax Act, 2017, on the nature of service involved in this writ petition. This decision was based on the joint submission of both parties that the issue had been conclusively decided by the Hon'ble Supreme Court in the case of Union of India & Anr. vs. M/s. Mohit Minerals Pvt. Ltd. (dated 19th May, 2022) and by a Division Bench of the same High Court in Union of India & Anr. vs. MCPI Private Limited & Anr. (MAT 151 of 2021, dated 15th June, 2022). The ratio decidendi is that ocean freight for services provided to a person in a non-taxable territory, involving transportation of goods from outside India to the Indian customs station, is not subject to IGST. The Court disposed of the writ petition by declaring that the petitioners' case is governed by these precedents and no tax is leviable.
Key Issues
1. Whether tax is leviable under the Integrated Goods and Services Tax Act, 2017, on ocean freight for services provided for a person located in a non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India? Petitioner's Contention: The petitioners argued that IGST is not leviable on such ocean freight charges. They relied on the Supreme Court judgment in Union of India & Anr. vs. M/s. Mohit Minerals Pvt. Ltd. and a Division Bench decision of the same High Court in Union of India & Anr. vs. MCPI Private Limited & Anr. (MAT 151 of 2021). Revenue's Contention: The revenue authorities did not explicitly record arguments against the petitioners' position. Instead, they jointly submitted with the petitioners that the issue stands covered by the aforementioned Supreme Court and High Court judgments in favour of the assessee.
Sections Cited
Integrated Goods and Services Tax Act, 2017
AI-generated summary — verify with the full judgment below
2022 ks WPA 6941 of 2018 sl. 1 M/s. Emami Agrotech Limited & Anr. Vs Union of India & Ors. Mr. Rahul Dhanuka, Mr. H. Choudhury … For the Petitioners. Mr. Bhaskar Prosad Banerjee … For the CGST & CX. Mr. Partha Ghosh … For the UOI. Heard learned Advocates appearing for the parties. In this writ petition, the subject matter of challenge is as to whether tax is leviable under the Integrated Goods and Services Tax Act, 2017, on ocean freight, for services provided for a person located in a non- taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India. Both the parties jointly submit that now the aforesaid issue stands covered in favour of the assessee/petitioners by a judgment of the Hon’ble Supreme Court dated 19th May, 2022 in the case of Union of India & Anr. vs. M/s. Mohit Minerals Pvt. Ltd. as well as by a decision of the Division Bench of this Court dated 15th June, 2022 in the case of Union of India & Anr. vs. MCPI Private Limited & Anr.(MAT 151 of 2021).
2 Following the aforesaid judgment of the Hon’ble Supreme Court and the decision of the Division Bench of this Court, this writ petition being WPA 6941 of 2018 is disposed of by declaring that the case of the petitioners will be governed by the aforesaid decisions and it is declared that no tax is leviable under the Integrated Goods and Services Tax Act, 2017 on the nature of service involved in this writ petition. ( Md. Nizamuddin, J. )
Reproduced from the public record of the Calcutta High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.