Saraogi Udyog Private Limited vs. Union Of INDIA & Anr.
Held
The Court held that the issue had been decided in favour of the petitioners by the Supreme Court in Union of India vs. Mohit Minerals Pvt. Ltd. (2022 SCC Online SC 657). This fact was not disputed by the respondents. Consequently, the Court quashed Notification No. 8/2017-Integrated Tax (Rate) dated June 28, 2017, and entry 10 of Notification No. 10/2017-Integrated Tax (Rate) dated June 28, 2017, finding them to be ultra vires the Integrated Goods and Services Tax Act, 2017. The Court further held 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. The writ petitions were disposed of with these directions.
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 before the Delhi High Court. The core issue revolved around the levy of Integrated Goods and Services Tax (IGST) on ocean freight for services supplied by persons located in non-taxable territories, specifically for the transportation of goods by vessel from outside India to the customs station of clearance in India. The impugned actions under challenge were Notification No. 8/2017-Integrated Tax (Rate) dated June 28, 2017, and entry 10 of Notification No. 10/2017-Integrated Tax (Rate) dated June 28, 2017. The tax periods are not explicitly stated but pertain to the period when these notifications were in effect.
Key Issues
1. Whether Notification No. 8/2017-Integrated Tax (Rate) dated June 28, 2017, and entry 10 of Notification No. 10/2017-Integrated Tax (Rate) dated June 28, 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 Supreme Court had already decided this issue in their favour in the case of Union of India vs. Mohit Minerals Pvt. Ltd. (2022 SCC Online SC 657), holding that IGST is not leviable on ocean freight in such circumstances. Respondent's contention: The respondents did not dispute the fact that the Supreme Court had decided the matter in favour of the petitioners.
Sections Cited
Notification No. 8/2017-Integrated Tax (Rate), Notification No.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 18:57:34
versus UNION OF INDIA & ANR. ..... Respondents Through: Mr. Harpreet Singh with Ms. Suhani Mathur and Mr. Jatin Kumar, Advocates 1
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