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ARUN BHANSALI, NARENDRA SINGH DHADDHA
Chambal Fertilisers And Chemicals Limited – Appellant
Versus
Union of India – Respondent
ORDER :
This writ petition has been filed by the petitioner seeking the following reliefs:-
2. Declare the provisions of section 99 of the CGST Act and Section 99 of the RGST Act to the extent it prescribes for constitution of the AAAR which consists of Chief commissioner of central tax and Commissioner of state tax as its members as arbitrary and unconstitutional and accordingly quash impugned notification dated 22.12.2017 (Annexure-5);
3. Declare Entry 10 of the Impugned Notification dated 28.06.2017 (Annexure-1) to the extent it notifies 'importer' as the 'recipient' of service for the levy of IGST on reverse charge mechanism and authorizing levy on the Importer in case of import of goods on CIF basis as ultravires to section 5(3) of the IGST Act, 2017;
4. Declare proviso to section 5(1) of
The court ruled that imposing IGST on service components of composite supplies is impermissible under GST law, reaffirming the non-binding nature of GST Council recommendations.
Double taxation on the same transaction is impermissible, as established in the context of both C.I.F. and F.O.B. contracts.
Refund of IGST is mandated when earlier notifications were found unconstitutional, confirming unavailability of time-bar arguments.
The court affirmed that an unlawful tax collection obligates the government to refund with interest, reinforcing the principle of unjust enrichment and constitutional mandates under Article 265.
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Rule 96(10) of the CGST Rules was declared ultra vires Section 16 of the IGST Act for imposing unjust restrictions on exporters' right to claim IGST refunds.
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