https://www.taxtmi.com/caselaws?id=756313 Service tax was not leviable on ocean freight in CIF contracts from the importer under reverse charge. The governing High Court ruling held that, for transportation of goods by vessel from outside India to the customs station in India, the importer is neither the service provider nor the service recipient, and tax cannot be recovered from a third party. It further held that the relevant rule and notification framework was ultra vires the Finance Act, 1994, and that no machinery provision existed to value and recover the levy from importers. Lower authorities were required to follow that binding ruling, so the demand and impugned order could not be sustained. en-us Tue, 30 Jul 2024 00:00:00 +0530 Thu, 01 Aug 2024 08:31:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756313 Service tax was not leviable on ocean freight in CIF contracts from the importer under reverse charge. The governing High Court ruling held that, for transportation of goods by vessel from outside India to the customs station in India, the importer is neither the service provider nor the service recipient, and tax cannot be recovered from a third party. It further held that the relevant rule and notification framework was ultra vires the Finance Act, 1994, and that no machinery provision existed to value and recover the levy from importers. Lower authorities were required to follow that binding ruling, so the demand and impugned order could not be sustained. Case-Laws Service Tax Tue, 30 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756313