Mohit Minerals P Ltd Gurat High Court
SPECIAL CIVIL APPLICATION No. 726 of 2018
The importer is neither supplier nor the recipient of ocean transportation services provided by shipping line outside India, they are not liable to pay IGST on such transactions.
- Under Section 9(3) of the CGST Act, only a recipient of a service can be vested with the liability to discharge service tax. The term ‘recipient’ has to be interpreted literally. In case of CIF Contracts, importer of goods into India cannot be said to be recipient of ocean freight services. The shipping services has been availed by the exporter (seller outside India) and so importer does not have any role in the play.
- The transaction of ocean freight service by foreign shipping line is neither an inter- State nor intra-State supply as per IGST Act.
- Ocean freight has already suffered IGST as a part of value of goods imported. Dual levy of IGST cannot be imposed treating it as supply of service. Double taxation, through delegated legislation, where statute does not provide, is not permissible.
