HC Directs Authority to Give IGST Refund & Interest on Ocean Freight

A division bench of the Gujarat High Court including Justice A.J. Desai and Justice Bhargav D. Karia has allowed IGST refund along with interest in the light of the recent Supreme Court decision in Mohit Minerals v. Union of India.

The applicant, M/s Adi Enterprises has challenged the vires of Entry No.10 of Notification No.10/2017-IGST (Rate) on 28.6.2017 issued beneath the IGST Act, 2017. As per notification No. 8/2017-Integrated Tax (Rate) dated 28.06.2017, services furnished via an individual located in a nontaxable territory to the other individual located in the non-taxable territory through the method of transportation of goods by a vessel from one place outside India up to the customs station of the clearance in India would be levied with 5% tax rate.

The petitioner approached the High court post to the supreme court ruling and seeks for the essential direction to be provided to the GST council to refund the amount of tax furnished previously by the petitioner.

Permitting the application the division bench ruled that we had seen the advocates appearing for the respective parties and considered the decision of the Hon’ble Apex Court upholding the decision of the Division Bench of this Court effected in the group of writ petitions, directed to the above. Towards the above, we pose an opinion that the current application needs the acknowledgement and thus that would be permitted in terms of prayer 6(a).

The respondents are rendered to provide the GST refund of IGST which is furnished by the applicants pursuant to entry no. 10 of Notification No.10/2017-IGST (Rate) dated 28.6.2017 including with the statutory interest rate on the same refund within the duration of 4 weeks from the submission date of the needed documents by the petitioner.