2018 (9) TMI 852 - HC - GST

Court rules IGST applies to petitioner's inter-state iron export; directs contentions to GST Officer for adjudication to avoid financial consequences.

The Court ruled that the Integrated Goods and Services Tax (IGST) is applicable to the petitioner's iron export business due to the inter-state nature of ... Levy of IGST - determination of place of supply of receipt of services by suppliers at Paradip Port Trust - location of of supplier of services and place of supply of services - Section 12 of the Customs Act, 1962 - Held that:- Keeping in mind the petitioner’s grievance that unless its concerns are properly dealt with or adjudicated, it is likely to lose substantial amounts on account of the impending finality with respect to the refund claimed (the last date mandated for the purpose is 30.09.2018), the Court is of the opinion that in case the petitioner urges these along with any other contention before the concerned GST Officer, he should while ruling upon them deal with all arguments and ensure that the assessments are complete before that date i.e. 30.09.2018 - petition disposed off. Issues:1. Applicability of Integrated Goods and Services Tax (IGST) for commercial activities.2. Jurisdiction of the Court to adjudicate on the applicability of IGST Act.3. Concerns regarding impending finality of refund claimed.Analysis:1. Applicability of IGST:The petitioner, a GST-registered entity engaged in iron export business, contended that IGST is applicable to its transactions due to the inter-state nature of its supplies. The petitioner highlighted the distinction in locale between the supplier and the recipient, emphasizing that the supplies should be treated as inter-state trade. The argument was supported by reference to Section 7 of the IGST Act, asserting that the determination of the place of service supplier should align with Section 12 of the Customs Act, 1962.2. Jurisdiction of the Court:The Revenue's counsel raised a procedural objection, stating that the pleadings did not establish the territorial jurisdiction of the Court to delve into the matter and make a definitive ruling on the applicability of the IGST Act. It was proposed that the appropriate course of action would be to allow the concerned GST Officer to adjudicate on the merits of the petitioner's claim. The Court considered the nature of the grievances raised and the petitioner's concerns regarding potential financial losses due to the impending finality of the refund claimed by a specified deadline.3. Impending Finality of Refund:Given the urgency of the petitioner's situation and the potential financial impact of delayed resolution, the Court provided specific directions for the petitioner to present all contentions, including those related to the impending refund, before the GST Officer. The Court emphasized the need for comprehensive assessments and timely resolution of all arguments before the specified deadline of 30.09.2018 to prevent any adverse financial consequences for the petitioner. Consequently, the writ petition was disposed of in accordance with the outlined directions, and any pending applications were also resolved as a part of the judgment.