A writ petition was filed before the Gujarat High Court challenging Notification 8/2017 and Notification 10/201713. Core taxable event under GST Regime is supply of goods or services, or, both, either individually or as composite supply, which composite supply cannot be dissected and taxed separately or additionally if the composite supply itself is taxable. The impugned levy imposed on the ‘service’ aspect of the transaction is in violation of the principle of ‘composite supply’ enshrined under Section 2(30) read with Section 8 of the CGST Act. Since the Indian importer is liable to pay IGST on the ‘composite supply’, comprising of supply of goods and supply of services of transportation, insurance, etc. in a CIF contract, a separate levy on the Indian importer for the ‘supply of services’ by the shipping line would be in violation of Section 8 of the CGST Act. Thus, having paid the IGST on the amount of freight which is included in the value of the imported goods, the impugned notifications levying tax again as a supply of service, without any express sanction by the statute, are illegal and liable to be struck down.” Paras 164 to 170 and 171.5

[Union of India v. Mohit Minerals (P) Ltd., (2022) 10 SCC 700]

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