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Delhi High Court - Orders

Tavrur Oils And Fats Pvt Ltd vs Commissioner Central Goods And Service ... on 11 January, 2023

Author: Vibhu Bakhru

Bench: Vibhu Bakhru

                   $~4 & 5
                   *    IN THE HIGH COURT OF DELHI AT NEW DELHI
                   +    W.P.(C) 17146/2022
                        TAVRUR OILS AND FATS PVT LTD           ..... Petitioner
                                         Through: Mr Rajat Mittal, Advocate.
                                         versus
                        COMMISSIONER CENTRAL GOODS AND
                        SERVICE TAX & ANR.                     ..... Respondents
                                         Through: Mr R. Ramachandran, Senior
                                                    Standing Counsel.
                                                AND
                   +    W.P.(C) 17152/2022
                        SOUTH INDIA KRISHNA OILS AND FATS
                        PVT. LTD.                              ..... Petitioner
                                         Through: Mr Rajat Mittal, Advocate.
                                         versus
                        COMMISSIONER, CENTRAL GOODS AND
                        SERVICE TAX & ANR.                     ..... Respondents
                                         Through: Mr R. Ramachandran, Senior
                                                    Standing Counsel.
                        CORAM:
                        HON'BLE MR. JUSTICE VIBHU BAKHRU
                        HON'BLE MR. JUSTICE AMIT MAHAJAN
                                         ORDER

% 11.01.2023

1. The petitioners have filed the present petitions, inter alia, claiming refund of the service tax collected on Ocean Freight. The petitioners claim that the Ocean Freight was paid by the supplier and the amendment seeking to impose service tax on Ocean Freight is unconstitutional.

2. The petitioners rely on the decision of the Gujarat High Court in M/s Sal Steel Ltd. and Ors. v. Union of India: (2020) 37 GSTL 1. The Gujrat High Court struck down the amendments made in the Service Tax Act as being ultra vires the provisions of the Finance Act, Signature Not Verified Digitally Signed By:Dushyant Rawal Signing Date:17.01.2023 1994 and held that the levy of service tax on Ocean Freight is unconstitutional. The petitioners claim that the Supreme Court in a later decision in Union of India and Anr. v. Mohit Minerals Pvt. Ltd.: (2022) 10 SCC 700 struck down the collection of IGST on Ocean Freight as being violative of the provisions of Central Goods and Service Tax Act, 2017.

3. Mr. Ramachandran, learned counsel who appears for the Revenue, has joined the proceedings through video-conferencing but is not audible.

4. In view of the above, the hearing of the present petitions is adjourned to 20.01.2023.

VIBHU BAKHRU, J AMIT MAHAJAN, J JANUARY 11, 2023 RK Signature Not Verified Digitally Signed By:Dushyant Rawal Signing Date:17.01.2023