Swiss Singapore INDIA Private Limited vs. The Union Of INDIA & Ors.

Held

The Court held that the matter in 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 28th June, 2017, and entry 10 of Notification No. 10/2017-Integrated Tax (Rate) dated 28th June, 2017, as being 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 ratio decidendi is that the levy of IGST on ocean freight for services rendered by overseas shipping lines to Indian importers, where the supply is received by the importer in India, is not permissible under the IGST Act, as per the Supreme Court's ruling in Mohit Minerals.

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 certain notifications related to Integrated Goods and Services Tax (IGST). The core issue revolved around the levy of IGST on ocean freight for services provided by entities located in non-taxable territories, specifically for the transportation of goods by vessel from outside India to the Indian customs station. The tax period is not explicitly stated but pertains to the period when the challenged notifications were in effect. The impugned actions 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, issued by the revenue authorities.

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 impugned notifications were 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. They relied on this Supreme Court judgment to assert that no tax is leviable under the IGST Act on such ocean freight services. Revenue's contention: The learned counsel for the respondents did not dispute the fact that the matter had been decided by the Supreme Court in favour of the petitioners. Therefore, no specific arguments were recorded for the revenue.