2023 (1) TMI 679 - SCH - GST

Supreme Court Rejects Petition, Upholds Prior Ruling on Mineral Company Dispute Under Established Legal Precedent

The SC dismissed the petition, following precedent established in a previous case involving Mohit Minerals Pvt Ltd. The bench, comprising two justices, ... Constitutional Validity of Sr. No. 9(ii) of the N/N. 8/2017-Integrated Tax (Rate) dated 28.06.2017 - N/N. 10/2017 – Integrated Tax (Rate) dated 28.06.2017 - Levy of IGST - services by way of transportation of goods by vessel from a place outside India - Scope of 'Importer' within meaning of Section 2(26) of the Custom Act, 1962 - recipient of service - HELD THAT:- In view of the decision of this Court in UNION OF INDIA & ANR. VERSUS M/S MOHIT MINERALS PVT. LTD. THROUGH DIRECTOR [2022 (5) TMI 968 - SUPREME COURT], where it was held that The impugned levy imposed on the ‘service’ aspect of the transaction is in violation of the principle of ‘composite supply’ enshrined under Section 2(30) read with Section 8 of the CGST Act. Since the Indian importer is liable to pay IGST on the ‘composite supply’, comprising of supply of goods and supply of services of transportation, insurance, etc. in a CIF contract, a separate levy on the Indian importer for the ‘supply of services’ by the shipping line would be in violation of Section 8 of the CGST Act, the petition stands dismissed. The Supreme Court of India, in a judgment by DR. D. Y. CHANDRACHUD and MS. HIMA KOHLI, JJ., dismissed the petition based on the decision in Union of India v M/s Mohit Minerals Pvt Ltd through Director [Civil Appeal No 1390 of 2022 decided on 19 May 2022]. Any pending application was disposed of.