High Court interim order halts IGST on imported freight; petitioner challenge cited; revenue affidavit due 13th Dec

The High Court of Calcutta issued an interim order preventing the levy of Integrated Goods and Service Tax (IGST) on freight imported on a CIF basis, following a challenge by the petitioner. The court referenced similar interim orders from other High Courts and granted the revenue three weeks to file an affidavit for further proceedings scheduled on 13th December 2019.

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Issues: Challenge against levy of IGST on freight imported on CIF basis.

The judgment delivered by the High Court of Calcutta addressed the challenge against the levy of Integrated Goods and Service Tax (IGST) on freight imported on a Cost, Insurance, and Freight (CIF) basis. The petitioner argued that since customs duty was already paid, which includes a component for freight, there should not be an additional levy of IGST on the same. The petitioner's advocate referenced interim orders from the High Courts of Andhra Pradesh and Gujarat, which restrained the revenue from taking coercive action against similar challenges. The revenue, represented by its advocate, did not dispute this position and had chosen to proceed for adjudication on merits. Consequently, the High Court of Calcutta deemed it appropriate to issue a similar interim order in the present case, preventing any coercive action against the petitioners until further proceedings. The revenue was granted the liberty to file an affidavit within three weeks, with the petitioner entitled to respond upon receiving an advance copy. The case was listed for further proceedings on 13th December 2019.

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