Order Date: 4 August2022

Facts-

• The Petitioner, Torrent power Ltd. is engaged in the business of importing natural gas.
• At the time of clearance of the goods for home consumption, the petitioner company pays customs duty, countervailing duty and other duties payable on the total value of goods which is the Cost, Insurance and Freight (CIF) value.
• The Notification No. 8 of 2017 dated 28.6.2017 provided that the IGST at the rate of 5% shall be levied on inter-state supply of services when the goods are transported in a vessel etc.. Another Notification No. 10 of 2017 dated 28.6.2017 came to be issued notifying that in respect of services supplied by a person located in the non-taxable territory by way of transportation of goods by vessel from a place outside India upto the Custom Clearance Station in India, the entire IGST shall be paid on the reverse charge basis by the importer. 
• By filing the present petition, the petitioner prayed to direct the respondent authorities to grant refund of the amount of GST and interest thereon, which was paid by the petitioner in view of Entry No. 10 of the Notification No. 10 of 2017 dated 28.06.2017, pursuant to the decision of Apex Court on 19.5.2022.

Issue-

• Whether the petitioner is eligible for refund when Entry no. 10 of Notification No.10/2017 of IGST has been declared ultra vires by the Apex Court?

Order-

• The Division bench judge of Hon’ble High Court observed that the similar issue came up for consideration before the co-ordinate Bench in ADI ENTERPRISES VERSUS UNION OF INDIA - GUJARAT HIGH COURT, wherein the question was about refund of the IGST paid pursuant to the aforementioned Notifications. The court directed respondents to refund the amount of IGST already paid by the applicants pursuant to Entry No.10 of Notification No. 10 of 2017.
• In view of the decision in MOHIT MINERALS PVT LTD VERSUS UNION OF INDIA & 1 OTHER GUJARAT HIGH COURT, since the impugned Notifications have already been declared as ultra vires, present petition deserves to be allowed.
• The Court held that the claim for refund of the petitioner towards IGST is liable to be favorably considered. The respondents are directed to grant of the refund amount of IGST already paid by the petitioner along with statutory rate of interest on such refund.
• The Petition is allowed.