The Centre has decided against seeking a review of the SC's verdict in Mohit Minerals case wherein it quashed levy of Integrated Goods and Services Tax on ocean freight, a move that clears the decks for release of hundreds of crores of rupees worth of pending refunds to businesses. The Central Board of Indirect Taxes and Customs, has communicated its decision to field formations.“It is informed that the board has decided not to file a review petition in the subject matter. This is for your information for further action at your end, if any,” said an internal note dated November 4 sent out by CBIC to the field.
In May, a bench of Justices DY Chandrachud, Surya Kant, and Vikram Nath dismissed the appeal by the central government against an earlier Gujarat High Court judgement that held that IGST on ocean freight was unconstitutional.
In its ruling, the SC bench also said that union and state governments have simultaneous powers to legislate on GST and the GST Council must work in a harmonious manner to achieve a workable solution.
Subsequently, the Gujarat High Court on July 29 directed the CBIC to grant refund of IGST earned on ocean freight within six weeks with interest. But refunds have been stuck for want of a formal directive.
ET had on August 23 reported that both the law ministry and law committee of the GST Council were of the view that the IGST on ocean freight must be scrapped as per the Supreme Court verdict and there was no need for filing a review petition.
The latest directive will help clear the refund IGST that has been stuck for sometime.
Source: The Economic Times
https://economictimes.indiatimes.com/news/india/govt-wont-seek-review-of-sc-verdict-in-mohit-minerals-case/articleshow/95723684.cms
https://economictimes.indiatimes.com/news/india/govt-wont-seek-review-of-sc-verdict-in-mohit-minerals-case/articleshow/95723684.cms
