Ocean freight GST levy treated as covered by binding precedent, with the challenge to the notification allowed.

The challenge to the levy and notification imposing integrated goods and services tax on ocean freight was treated as covered by binding precedent of the Gujarat HC, which had held that no tax was leviable on ocean freight for transportation of goods from outside India to the customs station of clearance in India and had declared the notification unconstitutional. On that basis, the Calcutta HC accepted the writ petition and allowed the challenge.

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Issues: Whether the impugned levy and notification imposing integrated goods and services tax on ocean freight were liable to be struck down as covered by the binding judgment of the Division Bench of the High Court of Gujarat.

Analysis: The writ petition was founded on the contention that the issue had already been decided by the Division Bench of the High Court of Gujarat, which had held that no tax was leviable on ocean freight for transportation of goods from a place outside India to the customs station of clearance in India and had declared the impugned notification unconstitutional. The challenge in the present petition was accepted as being covered by that decision.

Conclusion: The impugned challenge was accepted and the writ petition was allowed as covered by the binding precedent.

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