The Central Board of Indirect Taxes and Customs Legal Cell has issued Letter vide F. No. 275/11/2022-CX.8A dated November 04, 2022 informed that the Board has decided that the GST department will not challenge the Supreme Court decision in Mohit Minerals case.
The ruling pronounced by the Supreme Court on May 19, 2022, asserted a landmark judgment on IGST on Ocean Freight. The Supreme Court's verdict affirms the Gujarat High Court's Order on January 23, 2020, which stated that there would be no separate IGST on transportation costs (i.e., freight), which forms a part of the customs valuation of goods when imported on a CIF (Cost, Insurance and Freight) basis.
In the aforementioned case, till date government was exploring all options to challenge the SC judgment regarding the imposition of IGST on ocean freight, including the filing of a review petition with no intention to grant a refund to taxpayers. However, now this has been sorted and Board has decided not to file a Review Petition in the subject matter.
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