TaxTMI 
TaxTMI 
2026 (1) TMI 1149
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....ces Act, 2017/ West Bengal Goods and Service Tax Act, 2017 (hereafter the said Act of 2017) as well as an order dated March 25, 2025 passed by the Proper Officer thereby rejecting the petitioner's application for rectification. FACTS OF THE CASE: 2. A proceeding under Section 74 of the said Act of 2017 had been initiated against the petitioner by issuing a notice to show cause dated September 8, 2021 alleging that the petitioner had failed to make payment of Integrated Goods and Services Tax (hereafter "IGST") on ocean freight (under reverse charge mechanism) for goods imported by it. The petitioner replied to the said notice to show cause on October 23, 2021. 3. Later on, another notice dated July 13, 2022 was issued to the petiti....
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....ort ocean freight. 8. The said application for rectification also got rejected by an order dated March 25, 2025. Being aggrieved thereby, the petitioner has approached this Court by way of the present writ petition. SUBMISSIONS ON BEHALF OF THE PETITIONER: 9. Mr. Mazumder, learned advocate appearing for the petitioner submits that the order impugned is wholly without jurisdiction inasmuch as the Proper Officer has imposed a tax liability on the petitioner in the teeth of the judgment of the Hon'ble Supreme Court in the case of Mohit Minerals (P.) Ltd. (supra). It is submitted that once the Hon'ble Supreme Court has categorically held that IGST was not leviable on ocean freight for import of goods, the Proper Officer had no jurisdic....
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.... this Court in the case of Union of India & Anr. vs. MCPI Private Limited & Anr. 2022 (6) TMI 768 whereby the Hon'ble Division Bench upon relying on the judgment of the Hon'ble Supreme Court in the case of Mohit Minerals (supra) dismissed the appeal filed by the revenue against the order passed by the Hon'ble Single Judge holding that no tax was (is) leviable under the Integrated Goods and Services Tax Act, 2007, on ocean freight for services provided by a person located in a non-taxable territory, by way of transportation of goods on a vessel from a place outside India up to Customs station of clearance in India. It is submitted by Mr. Mazumder that in the said case before the Hon'ble Division Bench the order impugned had been passed by th....
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....he judgment of the Hon'ble Gujarat High Court had been assailed before the Hon'ble Supreme Court in the following words:- "But the Hon'ble Supreme Court has admitted the plea of the Central Government to challenge Gujarat High Court's decision quashing Integrated Goods and Service Tax (IGST) on ocean freights under reverse charge mechanism". 16. While the adjudications proceedings were under way the Hon'ble Supreme Court rendered the judgment in the case of Mohit Minerals (P.) Ltd (supra) thereby holding as follows:- "Based on the above discussion, we have reached the following conclusion: (i) The recommendations of the GST Council are not binding on the Union and States for the following reasons: (a) ....
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....ST Act is bound by the recommendations of the GST Council. However, that does not mean that all the recommendations of the GST Council made by virtue of the power Article 279A (4) are binding on the legislature's power to enact primary legislations; (ii) On a conjoint reading of Sections 2(11) and 13(9) of the IGST Act, read with Section 2(93) of the CGST Act, the import of goods by a CIF contract constitutes an "inter-state" supply which can be subject to IGST where the importer of such goods would be the recipient of shipping service; (iii) The IGST Act and the CGST Act define reverse charge and prescribe the entity that is to be taxed for these purposes. The specification of the recipient - in this case the importer - b....
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....om October 1, 2023, the Proper Officer held against the petitioner while observing as follows:- "5.22. Instant case is related to the period of July, 2017 to March, 2018 and CBIC has freed to importer to pay IGST on ocean freight service on comprising of supply of goods and supply of services of transportation, insurance, etc. in a CIF (Cost Insurance Freight) contract with effect from 01-10-2023 only." 19. The Proper Officer was, thus, of the view that since the amendment in the notification took effect from October 1, 2023 therefore transactions pertaining to any period prior to the amendment of the said notification would attract GST on ocean freight for imports notwithstanding the judgment of the Hon'ble Supreme Court in the....