- The Bombay High Court set aside a Show Cause Notice issued by the Revenue Department based on a Notification that has been held ultra vires by the Gujarat High Court and affirmed by the Supreme Court.
- The High Court held that the Show Cause Notice should not have been issued for payment of Integrated Goods and Services Tax (IGST) on reverse charge basis for Free-on-Board (FOB) contract-related services.
- The Court relied on previous judgments and held that the Notification, which included payment of IGST on reverse charge basis for CIF and FOB contracts, was ultra vires, and therefore the Show Cause Notice was rendered without jurisdiction. The Court allowed the writ petition and directed the refund of the tax amount deposited by the petitioner.
Source A2ztaxcorp
