Parakh Agro Industries LTD. vs. The Union Of INDIA And Anr

Held

The Court disposed of the petition on the ground that the issue was squarely covered by the judgment of the Apex Court in Union of India & Ors. Vs. M/s Mohit Minerals Pvt Ltd. (2022 Scconline SC 657). While the specific findings of the Supreme Court judgment are not detailed within this High Court order, the High Court's decision to dispose of the petition implies that it found the Petitioner's argument, based on the Supreme Court's precedent, to be valid. Consequently, the Court likely agreed that the challenged phrase in the notification was indeed ultra vires the IGST Act, as per the Apex Court's ruling. No specific operative directions beyond the disposal of the petition are mentioned, and no issues were expressly left undecided.

Facts

The Petitioner, Parakh Agro Industries Ltd., filed a writ petition before the Bombay High Court challenging a specific phrase within Notification No. 8/2017 – Integrated Tax (Rate) dated June 28, 2017. The phrase in question pertains to services provided or agreed to be provided by a person located in a non-taxable territory to another person in a non-taxable territory, specifically concerning the transportation of goods by vessel from outside India to an Indian customs station. The Petitioner sought to strike down this phrase as ultra vires the provisions of Section 5(1) read with Section 7 of the IGST Act, seeking consequential reliefs. The Petitioner argued that the issue was squarely covered by a Supreme Court judgment.

Key Issues

1. Whether the phrase "services provided or agreed to be provided by a person located in non-taxable territory to a person located in 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" in Sl. No. 9(ii) of Notification No. 8/2017 – Integrated Tax (Rate) dated 28.6.2017 is ultra vires the provisions of Section 5(1) read with Section 7 of the IGST Act. Petitioner's contention: The Petitioner argued that the impugned phrase in the notification is ultra vires the provisions of Section 5(1) read with Section 7 of the IGST Act. They relied on the judgment of the Apex Court in Union of India & Ors. Vs. M/s Mohit Minerals Pvt Ltd. to support their claim. Respondents' contention: The judgment does not record any specific arguments made by the Respondents (The Union of India & Anr.).