Newsprint Importer Wins IGST Refund Claim After Challenging Notification No. 10 of 2017 as Invalid

HC allowed petitioner's claim for IGST refund on newsprint import, following precedent set in previous cases like Mohit Minerals Pvt. Ltd. The court declared Notification No. 10 of 2017 ultra vires and directed respondents to refund IGST with statutory interest within eight weeks, based on consistent judicial interpretations invalidating the challenged tax notification.

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Issues:
Refund of IGST paid under Entry No. 10 of Notification No. 10 of 2017 dated 28.06.2017 without availing input tax credit.

Analysis:
The petitioner, a company engaged in printing and selling newspapers, imported newsprint on Cost and Freight (C & F) basis. The petitioner paid customs duty, countervailing duty, and other duties on the total C & F value at the time of clearance. The petitioner sought a refund of the IGST paid under Entry No. 10 of Notification No. 10 of 2017 without availing input tax credit through a petition under Article 226 of the Constitution of India.

The Notifications No. 8 of 2017 and No. 10 of 2017 dated 28.06.2017, along with a corrigendum dated 30.06.2017, levied IGST on inter-state supply of services involving transportation of goods by vessel. However, the validity of these notifications was challenged in previous cases, including Mohit Minerals Pvt. Ltd. vs. Union of India, where the court declared the notifications unconstitutional and ultra vires. This decision was followed in subsequent cases like Gokul Agro Resources Ltd. vs. UOI, Bharat Oman Refineries Ltd. vs. Union of India, and Comsol Energy Private Limited vs. State of Gujarat.

In the case of ADI Enterprises vs. Union of India, the court directed the refund of IGST paid under Entry No. 10 of Notification No. 10 of 2017. The court noted that the notifications were declared ultra vires and directed the respondents to refund the IGST amount along with statutory interest within a specified time frame. The present petition sought a similar outcome based on the previous judgments and the invalidity of the notifications.

Considering the precedent set by the previous judgments, the court found the impugned notifications to be ultra vires and allowed the present petition for a refund of IGST paid by the petitioner. The competent authority was directed to verify the refund amount and grant it along with statutory interest within eight weeks from the date of the order. Consequently, the petition was allowed in favor of the petitioner for the refund of IGST paid under Entry No. 10 of Notification No. 10 of 2017.

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