Sandesh Ltd VS Union Of India

In the case presented, Mr. Uchit N. Sheth, representing the petitioner, and Mr. Nikunt Raval, representing the respondents, were heard.

The petitioner is a company involved in printing and selling newspapers, registered under the Central Goods and Services Tax Act, 2017 (GST Act). The company imports newsprint from foreign countries on a Cost and Freight (C&F) basis. This means that the exporter of the goods arranges and pays for the transportation of the goods up to the port of India.

Heard learned advocate Mr. Uchit N. Sheth for the petitioner and learned advocate Mr. Nikunt Raval for the respondents.

The petitioner company is engaged in the business of printing and selling newspapers and is registered under the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the “GST Act”). The company imports newsprint from outside the country on a Cost and Freight (C & F) basis. The transportation of the goods up to the port in India is arranged by the exporter, who also pays the freight. When the goods are imported by the petitioner, they file the bill of entry for home consumption. This process takes place at the time of clearance of the goods.

The petitioner company, represented by Mr. Uchit N. Sheth, is engaged in the business of printing and selling newspapers and is registered under the Central Goods and Services Tax Act, 2017 (GST Act). The company imports newsprint from abroad on a Cost and Freight (C & F) basis, with transportation and freight costs handled by the exporter. Upon import, the petitioner files a bill of entry for home consumption and pays the necessary customs duties, including countervailing duty and other related charges, based on the C & F value of the goods.

Section 5(3) of the Integrated Goods and Services Tax (IGST) empowers the government to specify categories of goods or services for which tax must be paid on a reverse charge basis by the recipient. Entry No. 10 of the Reverse Charge Notification lists the specific categories of supply of services subject to this provision. Mr. Nikunt Raval represents the respondents in this matter.

In the case involving the petitioner company and the respondents, the learned advocate Mr. Uchit N. Sheth represented the petitioner, while Mr. Nikunt Raval represented the respondents.

The petitioner company, engaged in the business of printing and selling newspapers, is registered under the Central Goods and Services Tax Act, 2017 (GST Act). The company imports newsprint on a Cost and Freight (C & F) basis, meaning the exporter arranges and pays for the transportation of goods to the port in India. Upon importing the goods, the petitioner files a bill of entry for home consumption and pays customs duty, countervailing duty, and other applicable duties on the total value of the goods, including the C & F value.

Section 5(3) of the Integrated Goods and Services Tax (IGST) empowers the government to specify categories of supply of goods or services for which tax must be paid on a reverse charge basis by the recipient. The supply of services category is mentioned in Entry No. 10 of the Reverse Charge Notification.

The petitioner filed the present petition under Article 226 of the Constitution of India, seeking a directive for the respondents to grant a refund of the IGST paid pursuant to Entry No. 10 of Notification No. 10 of 2017, dated 28.06.2017, with interest. This request is made in respect of services for which no input tax credit was availed by the petitioner.

With the introduction of the Goods and Services Tax from 1.7.2017, Notification No. 8 of 2017, dated 28.6.2017, stipulated that IGST at the rate of 5% would be levied on inter-state supply of services when goods are transported by vessel. Additionally, Notification No. 10 of 2017, dated 28.6.2017, specified that services supplied by a person located in a non-taxable territory by way of transportation of goods by vessel would also be subject to this levy.

The petitioner, represented by Mr. Uchit N. Sheth, is a company involved in printing and selling newspapers and is registered under the Central Goods and Services Tax Act, 2017 (GST Act). This company imports newsprint on a Cost and Freight (C&F) basis, meaning the exporter arranges and pays for the transportation of goods to the Indian port. Upon importing, the petitioner files a bill of entry for home consumption and pays customs duty, countervailing duty, and other applicable duties based on the C&F value of the goods.

Section 5(3) of the Integrated Goods and Services Tax (IGST) Act allows the government to specify categories of goods or services that must be taxed on a reverse charge basis, where the recipient of the goods or services pays the tax. Entry No. 10 of the Reverse Charge Notification lists these categories. The petitioner seeks a refund of IGST paid under this entry for which no input tax credit was availed, with interest.

With the introduction of GST on July 1, 2017, Notification No. 8 of 2017 stipulated a 5% IGST on inter-state supply of services for goods transported by vessel. Notification No. 10 of 2017 required the importer to pay IGST on services provided by a non-taxable territory person for transporting goods by vessel to India. A corrigendum on June 30, 2017, adjusted the IGST rate to 10% of the CIF value under certain conditions.

The petitioner refers to a previous case, Mohit Minerals Pvt. Ltd. vs. Union of India, where the court deemed Notifications No. 8 and 10 of 2017 unconstitutional. The petitioner seeks a similar ruling to grant a refund of the IGST paid.

Download PDF:

For Reference Visit:

Read Another Case Law:

GST Case Law: