The Sandesh LTD. vs. Union Of INDIA
Held
The Court held that the impugned Entry No. 10 of Notification No. 10 of 2017-IGST (Rate) dated 28.06.2017 has already been declared ultra vires the Act by this Court in the case of Mohit Minerals Pvt. Ltd. vs. Union of India, a decision that has been consistently followed in subsequent cases. The Court noted that the respondents' advocates could not dispute this established legal position. Consequently, the petitioner's claim for refund of IGST paid pursuant to the said ultra vires notification is liable to be favourably considered. The competent authority of the respondents is directed to verify the refund amount and grant the refund of IGST paid by the petitioner, along with the statutory rate of interest, within eight weeks from the receipt of the order.
Facts
The petitioner, The Sandesh Ltd., engaged in printing and selling newspapers, imports newsprint on a Cost and Freight (C & F) basis. The exporter arranges and pays for transportation to the Indian port. The petitioner files a bill of entry for home consumption and pays customs duty, countervailing duty, and other duties on the C & F value. The petitioner seeks a refund of IGST paid under Entry No. 10 of Notification No. 10 of 2017 dated 28.06.2017, for which no input tax credit was availed, along with interest. This notification mandated payment of IGST on reverse charge basis by the importer for services of transportation of goods by vessel from outside India up to the Custom Clearance Station in India. A corrigendum dated 30.06.2017 stipulated the IGST rate at 10% of the CIF value.
Key Issues
1. Whether Entry No. 10 of Notification No. 10 of 2017-IGST (Rate) dated 28.06.2017, issued under the Integrated Goods and Services Tax Act, 2017, is ultra vires the Act, as argued by the petitioner. 2. Whether the petitioner is entitled to a refund of IGST paid pursuant to the said notification, along with interest, as argued by the petitioner. The petitioner contended that the aforementioned notifications were declared unconstitutional and ultra vires by this Court in Mohit Minerals Pvt. Ltd. vs. Union of India and subsequent decisions, and that the Supreme Court also dismissed appeals related to similar issues. The petitioner relied on these precedents. The respondents did not dispute the position and law emanating from the decision in Mohit Minerals Pvt. Ltd.
Sections Cited
Section 5(3) of the Integrated Goods and Services Tax Act, 2017, Notification No. 10 of 2017 dated 28.06.2017, Notification No. 8 of 2017 dated 28.06.2017
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Cause title — parties, addresses and appearances
ORAL ORDER (PER : HONOURABLE MR. JUSTICE N.V.ANJARIA) Heard learned advocate Mr. Uchit N. Sheth for the petitioner and learned advocate Mr. Nikunt Raval for the respondents.
The petitioner company, which is engaged in the business of printing and sale of newspapers and registered under the Central Goods and Services Tax Act, 2017 (hereinafter referred to as "GST Act") imports news print from outside the country. The imports are made on Cost and Freight (C & F) basis. The transportation of the goods up to the port of India is arrange
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