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of <h1>High Court Invalidates Tax on Ocean Freight under GST Act</h1> <h3>M/s. ANMOL INDIA LIMITED Versus UNION OF INDIA</h3> The High Court declared impugned Notifications under the Integrated Goods and Services Tax Act, 2017, regarding tax on ocean freight for transporting ... Levy of IGST on Ocean Freight - Reverse Charge - Vires of N/N. 8/2017-Integrated Tax (Rate) dated 28.06.2017 and Entry 10 of the Notification No.10/2017 Integrated Tax (Rate) dated 28.06.2017 - services supplied by a person located in 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 - HELD THAT:- This petition need not be adjudicated further in view of the decision in the case of MOHIT MINERALS PVT LTD VERSUS UNION OF INDIA & 1 OTHER [2020 (1) TMI 974 - GUJARAT HIGH COURT] where it was held that The impugned Notification No.8/2017 – Integrated Tax (Rate) dated 28th June 2017 and the Entry 10 of the N/N.10/2017 – Integrated Tax (Rate) dated 28th June 2017 are declared as ultra vires the Integrated Goods and Services Tax Act, 2017, as they lack legislative competency. Both the Notifications are hereby declared to be unconstitutional . Application disposed off. Issues involved:Challenge to impugned Notifications under Integrated Goods and Services Tax Act, 2017 regarding levy of tax on ocean freight for transportation of goods by vessel from non-taxable territory to India.Analysis:The petitioner, an import company, filed a writ-application challenging the impugned Notifications under Article 226 of the Constitution of India. The relief sought included quashing the Notifications and declaring them ultra vires to the Integrated Goods and Services Tax Act, 2017, and hence, unconstitutional. The petitioner also requested the court to issue directions for placing records of recommendations and decisions related to the Notifications. Additionally, interim reliefs were sought, including staying the operation of the Notifications and the levy and collection of tax on ocean freight during the pendency of the petition.The High Court, in its judgment, referred to a previous case and concluded that no tax is leviable under the Integrated Goods and Services Tax Act on ocean freight for services provided by a person in a non-taxable territory for transporting goods by vessel to India. The court held that the levy and collection of tax on such ocean freight under the impugned Notifications were not permissible in law. Consequently, the impugned Notifications were declared ultra vires the Integrated Goods and Services Tax Act, 2017, due to lack of legislative competency, and were deemed unconstitutional. The court disposed of the writ-application based on the precedent set in the mentioned case, thereby providing relief to the petitioner and declaring the impugned Notifications invalid.
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