Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *   CBIC issues draft rules for Customs valuation *  Top Headlines: Threshold for Benami deals, green bond investors, and more *  Govt aims 1-hour clearance for goods at all ports *  Exporters Allowed To Use RoDTEP, RoSCTL Scrips To Pay Customs Duty, Transfer Them; Rules Amended *  Millions of labourers to be affected by brick producers’ strike over hike in GST, coal rates *  Inauguration of ‘kendriya GST parisar’ *  Transporter can seek Release of Conveyance alone, not Goods under GST Act: Madras HC *  GST: Quoting of DIN Mandatory for Responding to Notice, Govt Modifies Portal *  Firms can soon file claims for GST credits of ?400 cr *  CBIC issues modalities for filing transitional credit under GST. *  Mumbai: Man creates 36 fake GST firms, arrested for input tax credit fraud of Rs 23 cr *  Report to restructure Commerce Ministry under study; idea is to set up trade promotion body: Goyal *  Firms can soon file claims for GST credits of ?400 cr *  Gambling Alert! Govt May Levy Up To 28% GST; UP, Bengal Back Move *  EPFO backs raising retirement age to ease pressure on pension funds *  India Moving Up Power Scale, Set to Become Third Largest Economy By 2030 *  Airfares Get Expensive: What Changes for Flyers From Today? *  IRCTC Latest News: Passengers to Pay More For Cancelling Confirmed Rail Tickets Soon. *  IBC prevails over Customs Act, says Supreme Court. *  As GST enters sixth year, a time for evaluation and reassessment *  There’s GST on daily essentials as Centre needs money to buy MLAs: Arvind Kejriwal *  Now, GST on cancellation of confirmed train tickets, hotel bookings *  GST kitty for top States could rise 20% in FY23, says Crisil *  French customs officials seize another cargo vessel over Russia sanctions *  TradeLens builds on Asia momentum with Pakistan Customs deal *  Hike tax on tobacco, reduce affordability & increase revenue: Civil society organizations to GST council *  Bihar: ?10 crore tax evasion on tobacco products detected in raids *  Centre failed on GST, COVID; would it be anti-national? Rajan on Infosys row *  Service Tax not Chargeable on Income Tax TDS portion paid by recipient: CESTAT grants relief to TVS *  Foreign portfolio investors make net investment of Rs 7575cr in Sep so far
Subject News *  Run-up to Budget: Monetary threshold for GST offences may rise to Rs 25 cr *   GST (Tax) E-invoice Must For Businesses With Over Rs 5 Crore Annual Turnover *   Both Central GST and excise duty can be imposed on tobacco, rules Karnataka high court *   CBIC Issues Clarification On Extended Timelines For GST Compliance *   CBIC Issues Clarification On Extended Timelines For GST Compliance *  Budget 2023- 9.6 crore gas connections *  GST: Tamil Nadu Issues Instructions for Assessment and Adjudication Proceedings *  GST: CBIC Extends Last Date for filing of ITC *  GST collection in September surpasses Rs 1.4 lakh crore for straight seventh time *  Dollar smuggling case: Customs chargesheet names M Sivasankar as key conspirator. *  Hike in GST rates fuels inflation *  Assam: CBI arrests GST commissioner in Guwahati *  GST fraud worth ?824cr by 15 insurance Cos detected *  India proposes 15% customs duties on 22 items imported from UK *  Decriminalising certain offences under GST on cards *  Surge in GST collections more due to higher inflation: India Ratings *  MNRE Notifies BCD and Hike in GST Rates as ‘Change in Law’ Events But With a Condition | Mercom India *   Solar projects awarded before customs duty change allowed cost pass-through *  Rajasthan High Court Dismisses Writ Petitions Challenging Levy Of GST On Royalty *   GST revenue in September likely at Rs 1.45 lakh crore *  Govt working on decriminalising certain offences under GST, lower compounding charge *  Building an institution like GST Council takes time, trashing is easy: Sitharaman *  GST collections in Sept may touch ?1.5 lakh crore *  KTR asks Centre to withdraw GST on handlooms *  After Gameskraft, More Online Gaming Startups To Receive GST Tax Claims *  Madras HC: AAR Application Filed Under VAT Does Not Survive After GST Enactment *  Threshold for criminal offences under GST law may be raised *  Bengaluru: Gaming company faces biggest GST notice of Rs 21,000 crore *  CBIC clarifies Classification of Cranes for GST, Customs Duty *  Customs seize gold hidden in bicycle in Kerala airport  

Comments

Print   |    |  Comment

GST Update No 137 GST on Ocean Freight-A never ending fight!

GST Update No 137 GST on Ocean Freight-A never ending fight!
The hallmark of levy of tax as provided under Article 265 of Constitution of India is that there cannot be any levy without an authority of law. Any incidence of double taxation will be always outside the framework of taxation. One of the burning issues in GST era is levy of GST on the ocean freight under reverse charge mechanism to be paid by the importer. Although there is favourable decision rendered by the hon’ble Gujarat High Court in the case of MOHIT MINERALS PVT. LTD. but the AAR’s and AAAR’s continue to follow their own interpretation as regards the levy of tax on ocean freight. Recently, the issue regarding levy of GST on ocean freight was again raised before Uttar Pradesh AAAR in the case of M/s SANGAL PAPERS LTD. wherein the order of AAR confirming the taxability of IGST in case of ocean freight under reverse charge mechanism was upheld. The analysis of this decision is the subject matter of discussion of our present update. The AAAR referred to the provisions of notification no. 10/2017-Integrated Tax (Rate) dated 28.06.2017 to justify imposition of IGST on ocean freight under reverse charge mechanism. It was also held that levy of tax under RCM gives a level playing field to the domestic shipping lines. Moreover, the goods are transported from a place outside India upto the customs station in India for the importer and therefore, he is directly or indirectly the recipient of service. It was also stated that the view of AAR in confirming levy of tax on ocean freight is upheld as the decision pronounced by Gujarat High Court in case of MOHIT MINERALS PVT. LTD. has been challenged before Supreme Court and the final outcome is still pending. However, the operative portion of the AAAR order states that as the matter regarding levy of IGST on ocean freight is sub-judice and pending before Apex Court, it is inappropriate for AAAR to pass any order in the instant case. It is pointed that inspite of favourable decision rendered by Gujarat High Court on the issue under consideration, the AAR and AAAR’s refrain from following the said High Court judgment. Similarly, Rajasthan AAR in case of M/S. CHAMBAL FERTILISERS & CHEMICALS LIMITED, held that importer would be liable to pay GST under reverse charge mechanism for ocean freight for CIF contracts and tax paid under RCM would be eligible for credit. Likewise, there are numerous decisions rendered by AARs that run contrary to the analogy laid down by the hon’ble Gujarat High Court. In this context, we are inclined to recall the landmark judgment rendered by the Supreme Court in the case of UNION OF INDIA V KAMALAKSHI FINANCE CORPORATION LTD., wherein, the Apex Court held that, 'THE PRINCIPLES OF JUDICIAL DISCIPLINE REQUIRE THAT THE ORDERS OF THE HIGHER APPELLATE AUTHORITIES SHOULD BE FOLLOWED COMPLETELY BY THE SUBORDINATE AUTHORITIES'. In light of the above cited decision, the orders passed by the High Court is required to be unreservedly followed by the subordinate authorities but it is often observed that the decisions rendered by High Courts are simply ignored while passing orders by revenue authorities. Revenue authorities need to give due regard to the orders of the higher appellate authorities which are binding on them in view of the principle of judicial discipline so that unwarranted litigation can be avoided.
Department News


Query

 
PRADEEP JAIN, F.C.A.

Head Office : -

Address :
"SUGYAN", H - 29, SHASTRI NAGAR, JODHPUR (RAJ.) - 342003

Phone No. :
0291 - 2439496, 0291 - 3258496

Mobile No. :
09314722236

Fax No. :0291 - 2439496


Branch Office : -

Address:
1008, 10th FLOOR, SUKH SAGAR COMPLEX,
NEAR FORTUNE LANDMARK HOTEL, USMANPURA,
ASHRAM ROAD, AHMEDABAD-380013

Phone No. :
079-32999496, 27560043

Mobile No. :
093777659496, 09377649496

E-mail :pradeep@capradeepjain.com