Assessee entitled to get refund of IGST paid on ocean freight along with interest: HC

Case Details: Torrent Power Ltd. v. Union of India - [2022] 142 taxmann.com 314 (Gujarat)

Judiciary and Counsel Details

• • N.V. Anjaria & Bhargav D. Karia, JJ.
  • Uchit N. Sheth for the Petitioner.
  • Priyank P. Lodha for the Respondent.

Facts of the Case

The petitioner was a registered public limited company which was engaged in business of importing natural gas. It paid IGST at 5% on ocean freight under reverse charge. It filed petition under Article 226 of the Constitution of India and prayed to direct the authorities to grant refund of the amount of GST and interest thereon.

High Court Held

The Honorable High Court observed that the levy of IGST on ocean freight through notification had been declared ultra vires by the Apex Court in case of Union of India vs. Mohit Minerals Pvt. Ltd [2022] 138 taxmann.com 331 (SC).

The Court noted that since the impugned Notifications have already been declared as ultra vires in decision of Mohit Minerals Pvt. Ltd. (supra), the present petition deserves to be allowed.

Therefore, the claim for refund of the petitioner towards IGST was liable to be favourably considered and the department was directed to verify the amount of refund and grant such refund of the amount of IGST paid by the petitioner within eight weeks.