IGST on ocean freight was found unsustainable, with the related notifications treated as ultra vires after Mohit Minerals.

IGST on ocean freight for transportation of goods by vessel from a place outside India to the customs station in India was described as unsustainable after the Supreme Court in Mohit Minerals Pvt. Ltd. held that the recipient was not liable to pay IGST in that situation. Applying that binding position, the challenged levy could not survive and the related Notification No. 8/2017-Integrated Tax (Rate) and entry 10 of Notification No. 10/2017-Integrated Tax (Rate) were treated as beyond the powers conferred by law and quashed as ultra vires.

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Issues: Whether the levy of IGST on ocean freight for services supplied by a person located in a non-taxable territory for transportation of goods by vessel from a place outside India up to the customs station of clearance in India was sustainable, and whether Notification No. 8/2017-Integrated Tax (Rate) dated 28.06.2017 and entry 10 of Notification No. 10/2017-Integrated Tax (Rate) dated 28.06.2017 were liable to be quashed.

Analysis: The issue was treated as settled by the Supreme Court decision in Mohit Minerals Pvt. Ltd., which held that the recipient was not liable to pay IGST on ocean freight in the stated situation. In light of that binding position, the challenged levy and the corresponding notification entries could not survive scrutiny and were beyond the powers conferred by law.

Conclusion: The petitioner was held not liable to pay IGST on ocean freight, and the impugned notification and entry were quashed as ultra vires.

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