Invalid IGST ocean freight levy supports refund claim after the notification was held unconstitutional.

Refund of IGST paid under the ocean freight levy followed from the prior declaration that the relevant IGST notifications were ultra vires and unconstitutional for want of legislative competence. The Court treated the issue as no longer res integra, held that the impugned levy had already been invalidated, and consequently accepted that tax collected under that notification could not be retained. The respondents were therefore required to sanction and pay the refund within the stipulated time.

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Issues: Whether the petitioner was entitled to refund of IGST paid under Entry No. 10 of Notification No. 10/2017-IGST (Rate) dated 28.6.2017, in view of the earlier declaration that the notification was ultra vires and unconstitutional.

Analysis: The issue was already covered by the earlier decision invalidating the relevant IGST notifications on the ground that they lacked legislative competence. The Court treated the challenge as no longer res integra and noted that the impugned levy on ocean freight had already been declared unconstitutional. In view of that binding determination, the respondents' liability to refund the tax already collected from the petitioner followed.

Conclusion: The petitioner was held entitled to refund of the IGST paid under the impugned notification, and the respondents were directed to sanction and pay the amount within the stipulated time.

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