WP/10473/2023 of M/S. MOSAIC INDIA PVT LTD., Vs THE PRINCIPAL COMMISSIONER OF CENTRAL TAX on 16 March 2026

1. M/S. MOSAIC INDIA PVT.LTD.,, D. NO. 2-34-14, GROUND FLOOR, PALLAMRAJU NAGAR, SAI NAGA VIGNESWARA NILAYAM, KAKINADA, ANDHRA PRADESH 533 003.

...PETITIONER AND

1. THE PRINCIPAL COMMISSIONER OF CENTRAL TAX, VISAKHAPATNAM CGST COMMISSIONERATE, GST BHAVAN, PORT AREA, VISAKHAPATNAM 530035

2. THE DEPUTY COMMISSIONER OF CENTRAL TAX, , KAKINADA CGST DIVISION, D. NO. 16-23-6211, 2ND FLOOR, G.S.T. BUILDING, PALLAMRAJU NAGAR, KAKINADA 533 001.

3. THE COMMISSIONER OF CENTRAL TAX APPEALS, , D. NO. 3- 30-15, RING ROAD, GUNTUR 522 007.

4. THE ADDITIONAL COMMISSIONER OF CENTRAL TAX APPEALS, , D. NO. 3-30-15, RING ROAD, GUNTUR 522 007.

5. THE UNION OF INDIA, THROUGH ITS REVENUE SECRETARY, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE,128-A NORTH BLOCK, NEW DELHI 110001.

...RESPONDENT(S): Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased topleased to issue a Writ, Order or direction particularly one in the nature 'WRIT OF MANDAMUS a). setting aside the impugned Order-in-Appeal No. VIZ-GST 000-APP-029-20-21 dated 26.11.2020 passed by the Respondent No. 4. b) directing the Respondents to refund Rs. 11,94,034 pertaining to month of June, 2018 in full with applicable interest which is presently at the rate of 6per annum. and c) Pass IA NO: 1 OF 2023 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased pleased to grant provisional refund of 90% of the refund amount in terms of terms of sub-section (6) of section 54 of the CGST Act read with Rule 91 of the CGST Rules and pas IA NO: 1 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased Pleased to grant leave for filing Rejoinder affidavit in the writ petition No. 10455 of 2023 and pass Counsel for the Petitioner:

1. LAKSHMI KUMARAN SRIDHARAN Counsel for the Respondent(S):

1. HARINATH N (DEPUTY SOLICITOR GENERAL OF INDIA))

2.

3. Y N VIVEKANANDA

The Court made the following common order:(per Hon’ble Sri Justice R Raghunandan Rao)

The petitioner imports bulk fertilizers into India and supplies the same to the domestic market. The said fertilizers were imported by the petitioner under a cost and freight contract, wherein the cost of freight borne by the overseas seller is included into the total cost payable by the petitioner.

2. Thereafter, the petitioner had sought a refund of the IGST paid under the reverse charge mechanism. This application filed under Section 54 was rejected by order dated 12.03.2020. The appeal filed against the said order was also dismissed by proceedings dated 26.11.202, in WP No.10455 of 2023. The details of the orders of rejection as well as the appellate orders are set out in the table given below: S. No. Writ Petition No. Order in Appeal Order in Original Impugned Period Refund Amount

1. W.P.No.10491/2

VIZ-GST- 000-APP- 026-20-21 dated 26.11.2020 C.No.V/18/3 /2020-GST dated 12.03.2020 December,

Rs.20,62,70 5/-

2. W.P.No.10473/2

VIZ-GST- 000-APP- 027-20-21 dated 26.11.2020 C.No.V/18/4 /2020-GST dated 12.03.2020 February,

Rs.13,90,29 4/-

3. W.P.No.10463/2

VIZ-GST- 000-APP- 028-20-21 dated 26.11.2020 C.No.V/18/5 /2020-GST dated 12.03.2020 May, 2018 Rs.8,63,706 /-

4. W.P.No.10455/2

VIZ-GST- 000-APP- C.No.V/18/6 /2020-GST June, 2018 Rs.11,94,03 4/-

029-20-21 dated 26.11.2020 dated 12.03.2020

5. W.P.No.10460/2

VIZ-GST- 000-APP- 030-20-21 dated 26.11.2020 C.No.V/18/7 /2020-GST dated 12.03.2020 August,

Rs.19,50,74 8/-

6. W.P.No.10461/2

VIZ-GST- 000-APP- 031-20-21 dated 26.11.2020 C.No.V/18/8 /2020-GST dated 12.03.2020 October,

Rs.34,16,67 6/-

7. W.P.No.10493/2

VIZ-GST- 000-APP- 032-20-21 dated 26.11.2020 C.No.V/18/9 /2020-GST dated 12.03.2020 January,

Rs.17,14,72 7/-

8. W.P.No.10462/2

VIZ-GST- 000-APP- 033-20-21 dated 26.11.2020 C.No.V/18/1 0/2020-GST dated 12.03.2020 March,

Rs.19,83,66 6/-

Total Rs.1,45,76, 556/-

3. Aggrieved by the said orders of rejection as well as the appellate orders, the petitioner has approached this Court by way of the present set of writ petitions. As all these writ petitions raise a similar issue, they are being disposed of by this common order.

4. The issue before this Court is whether the GST paid on freight charges is liable to be refunded to the petitioner. This issue had come up for consideration before the Hon’ble Supreme Court in the case of Union of India and Anr. Vs. M/s.Mohith Minerals1. The Hon’ble Supreme Court had held that the GST cannot be levied on freight charges in cases 1 (2022) 10 SCC 700

of CIF contracts. A Division Bench of this Court, after considering the question whether such exemption would also be available in cases of FOB contracts, rendered its decision in M/s.Sembcorp Energy India Limited Vs. Union of India2.

5. In the circumstances, following the aforesaid judgments, these writ petitions are allowed, setting aside the orders rejecting the refund as well as the appellate orders, with a further direction to the respondents to process the petitioner’s refund application strictly in accordance with the law laid down by the Hon’ble Supreme Court in M/s.Mohit Minerals Pvt. Ltd. and the judgment of this Court in M/s.Sembcorp Energy India Limited.

There shall be no order as to costs. As a sequel, pending applications, if any, shall stand closed. _______________________

R RAGHUNANDAN RAO, J

________________

T.C.D. SEKHAR, J

Dt.17.03.2026 DSB

2 2023 SCC OnLine Mad 2943

HON’BLE SRI JUSTICE R RAGHUNANDAN RAO AND HON’BLE SRI JUSTICE T.C.D. SEKHAR

WP.Nos. 10455, 10460, 10461, 10462, 10463, 10473, 10491 & 10493/2023 Dated 17.03.2026

U DSB