Narendra Plastic Private Limited vs. Union Of INDIA & Anr.
Held
The Court held that Notification No. 8/2017-Integrated Tax (Rate) dated 28th June, 2017 and entry 10 of Notification No. 10/2017-Integrated Tax (Rate) dated 28th June, 2017 are ultra vires the Integrated Goods and Services Tax Act, 2017. The Court found that no tax is leviable under the Integrated Goods and Services Tax Act, 2017 on ocean freight for services supplied by 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. This decision was based on the Supreme Court's ruling in Union of India vs. Mohit Minerals Pvt. Ltd. The ratio decidendi is that the levy of IGST on ocean freight under the impugned notifications is not permissible under the IGST Act, 2017.
Facts
The petitioners, including Swiss Singapore India Private Limited, Agarwal Coal Corporation Private Limited, Saraogi Udyog Private Limited, and Narendra Plastic Private Limited, filed writ petitions challenging the levy of Integrated Goods and Services Tax (IGST) on ocean freight. The impugned orders were based on Notification No. 8/2017-Integrated Tax (Rate) and entry 10 of Notification No. 10/2017-Integrated Tax (Rate), both dated June 28, 2017. The core of the dispute revolved around whether IGST was leviable on services supplied by a person located in a non-taxable territory, specifically for the transportation of goods by vessel from outside India to the customs station of clearance in India.
Key Issues
1. Whether Notification No. 8/2017-Integrated Tax (Rate) dated 28th June, 2017 and entry 10 of Notification No. 10/2017-Integrated Tax (Rate) dated 28th June, 2017 are ultra vires the Integrated Goods and Services Tax Act, 2017, specifically concerning the levy of IGST on ocean freight for services supplied by 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 the matter had been decided in their favour by the Supreme Court in the case of Union of India vs. Mohit Minerals Pvt. Ltd. (2022 SCC Online SC 657). Revenue's contention: The learned counsel for the respondents did not dispute the fact that the Supreme Court had decided the matter in favour of the petitioners.
Sections Cited
Section 8/2017-Integrated Tax (Rate), Section 10/2017-Integrated Tax (Rate)
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$~11-14 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 13586/2018 SWISS SINGAPORE INDIA PRIVATE LIMITED ..... Petitioner Through: Mr. Abhishek A Rastogi, Advocate versus THE UNION OF INDIA & ORS. ..... Respondents Through: Mr. Satish Kumar with Mr. Anish Raj and Mr. Dhruv, Advocates for R-2 & 3 12 + W.P.(C) 8720/2017 & CM APPL.35735/2017 AGARWAL COAL CORPORATION PRIVATE LIMITED ..... Petitioner Through: Mr. J K Mittal with Ms. Vandana Mittal and Ms. Aashna Suri, Advocates versus UNION OF INDIA & ANR. ..... Respondents Through: Mr. Dev P Bhardwaj and Ms. Anubha Bhardwaj, Advocates for UOI Mr. Harpreet Singh with Ms. Suhani Mathur and Mr. Jatin Kumar, Advocates 13 + W.P.(C) 8735/2017 & CM APPL.35793/2017 SARAOGI UDYOG PRIVATE LIMITED ..... Petitioner Through: Mr. J K Mittal with Ms. Vandana Mittal and Ms. Aashna Suri, Advocates This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 19/06/2026 at 18:57:36
versus UNION OF INDIA & ANR. ..... Respondents Through: Mr. Harpreet Singh with Ms. Suhani Mathur and Mr. Jatin Kumar, Advocates 1
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