Ocean freight taxability under GST: tribunal allows appeals relying on prior rulings that struck down freight tax provision.

The question of GST liability on ocean freight was resolved by reference to prior higher-court and tribunal rulings that struck down the provision treating ocean freight as taxable. The tribunal concluded the issue is no longer res integra and, relying on those precedents, held that the demand for GST on ocean freight cannot be sustained; accordingly the appeals were allowed and consequential relief granted to the taxpayers. The decision rests on precedent and does not re-examine the substantive merits beyond applying the binding authorities relied upon.

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Issues: Whether ocean freight for the period April 2017 to June 2017 is liable to GST, and whether the demand of Rs. 5,00,982/- raised on ocean freight can be sustained.

Analysis: The question of GST liability on ocean freight was examined in light of higher judicial and tribunal rulings addressing the taxability of ocean freight, including the decision of the Gujarat High Court in Sal Steel Ltd v. Union of India and subsequent Tribunal decisions that have struck down or negated the impugned provision or its application to ocean freight. The appeal record shows reliance on those precedents and no contrary analysis persisting in the lower authorities that would warrant sustaining the demand. Considering those binding or persuasive authorities on the same issue, the demand cannot be sustained for the period in question and consequential relief follows.

Conclusion: The appeal is allowed; the demand of Rs. 5,00,982/- raised on ocean freight for April 2017 to June 2017 is set aside in favour of the assessee.

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