GST Ocean Freight Refund Dispute

The Calcutta High Court in M/s. Indorama India Private Limited v. State of West Bengal & Ors. dealt with a writ petition arising from rejection of a GST refund sanctioned in favour of the petitioner relating to Integrated Goods and Services Tax paid on ocean freight under the reverse charge mechanism. 

The dispute emerged in the aftermath of the Supreme Court’s landmark judgment in Union of India v. Mohit Minerals Pvt. Ltd., which had declared levy of IGST on ocean freight in CIF import contracts as unconstitutional. 

The High Court adopted a pragmatic approach and remanded the matter to the appellate authority after permitting the petitioner to furnish legible copies of the Bill of Lading and supporting records for reconsideration of the refund claim on merits. The ruling underscores the importance of procedural fairness and substantive adjudication in GST refund proceedings.