Union of India & Anr vs Mohit Minerals Pvt. Ltd. Through Director

Bench: 3 — D.Y. Chandrachud

In Brief

The Union of India challenged a Gujarat High Court judgment that struck down two GST notifications levying tax on ocean freight in CIF (Cost-Insurance-Freight) coal import contracts. The Supreme Court dismissed the appeal, holding that while the notifications validly identify importers as service recipients under Section 5(3) and 5(4) of the IGST Act, they violate the 'composite supply' principle in Section 8 of the CGST Act. In CIF contracts, freight is part of the principal supply of goods; taxing it separately as services constitutes impermissible double taxation. The Court also held that GST Council recommendations are persuasive, not binding, to preserve fiscal federalism and simultaneous legislative power of Union and States.

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Goods and Services Tax Customs Law Excise and Indirect Taxation Constitutional Law Fiscal Federalism Administrative Law (Delegated Legislation) International Trade Double Taxation CIF Contracts

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