Reverse charge on ocean freight invalidated as conflicting with composite supply and double taxation principles.
Notifications 08/2017 and 10/2017 that impose tax on ocean freight in CIF contracts by treating the importer as the recipient under a Reverse Charge Mechanism were challenged as ultra vires, producing double taxation because freight is included in customs value, lacking territorial nexus, and mischaracterising the exporter/importer relationship; the Supreme Court refused to treat GST Council recommendations as binding and held that separate taxation of the freight service contravenes the statutory composite supply framework.