The Nagpur Bench of Bombay High Court has admitted on refund of unconstitutional GST levy on ocean freight.
The bench of Justice Anil L.Pansare and Justice Siddheshwar S.Thombre has admitted our writ petition challenging the denial of refund on account of limitation in respect of GST paid under RCM on the deemed ocean freight component in CIF contracts.
The bench noted that while the levy itself was already held unconstitutional by the Supreme Court in Mohit Minerals, taxpayers are still being denied refunds of such amounts merely on the ground of limitation and unjust enrichment. The petition sought to address this critical issue and ensure that taxpayers are not unjustly deprived of refunds of taxes that were never constitutionally payable.
The petitioners/assessee, who had paid the GST for the years 2018-19, the tax was imposed for services rendered. The petitioner submitted that the petitioner had imported certain goods on Cost, Insurance and Freight [CIF] basis. As such where the goods are supplied, the tax liability is borne by the supplier but the supplier is from foreign country. The Central Government and the State Government issued notifications directing the importer to pay GST on reverse charge.
The petitioner submitted the notifications across the country. The Gujarat High Court declared the notification as unconstitutional. The Central Government approached the Supreme Court in Civil Appeal No.1390 of 2022 (Union of India Vs. Mohit Minerals Private Limited).
The Supreme Court dismissed the appeal and thus upheld the order passed by the Gujarat High Court declaring both the notifications as ultra virus.
The court has held that since the order declaring notifications ultra virus attained finality, the petitioner approached the respondent for refund of tax paid by it. The request has been refused mainly on the ground of limitation.
Case Details
Case Title: Patanjali Foods Limited Vs. Deputy Commissioner of State Tax Wadi
Case No.: Writ Petition NO.5514/2025
Date: 19/09/2025
Counsel For Petitioner: Abhishek Naik, Advocate
Counsel For Respondent: K.R.Lule, AGP
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