As the issue is revenue neutral for the period between July 2019 and March 2021 during the subsistence of interim order when neither GST was collected nor paid, the first respondent and the jurisdictional officer of the first respondent shall not charge GST from the third respondent for such supply of service to the petitioner alone for renting of duty free shops within the Chennai Airport to the petitioner.
GST on Duty Free Shops –– The petitioner sought directions for the respondents to not to impose tax under the Act to the petitioner's Arrival and Departure Duty Free Shops operated at Chennai International Airport, in terms of the Concession Agreement dated 16.06.2016 and/or payments being made by the petitioner towards Minimum Guarantee / Revenue Share pursuant to and/or under Concession Agreement and consequently direct the respondents to refund a sum of Rs. 3,31,30,829.85/- to the petitioner as collected by the Airport Authority . The petitioner submitted that since the issue is revenue neutral and since it is engaged in zero rated supply at its Arrival and Departure Duty Free Shops inside the Airports, it is eligible for refund of input tax borne by it. The court observed that the petitioner is engaged in zero rated supply and the tax liability on account of supply of goods and service at the Airport Authority is revenue neutral issue in the hands of the petitioner. Therefore, there is no useful purpose in directing the Airport Authority to pay the tax for the past period and thereafter, it is for the petitioner to file refund claims.
Held that:- The Hon’ble High Court directed that GST paid by the Airport Authority for the period between 01.01.2018 and 30.06.2019 is ordered to be refunded back to the third respondent directly subject to the verification.
As the issue is revenue neutral for the period between July 2019 and March 2021 during the subsistence of interim order when neither GST was collected nor paid, the first respondent and the jurisdictional officer of the first respondent shall not charge GST from the third respondent for such supply of service to the petitioner alone for renting of duty free shops within the Chennai Airport to the petitioner.
GST on Duty Free Shops –– The petitioner sought directions for the respondents to not to impose tax under the Act to the petitioner's Arrival and Departure Duty Free Shops operated at Chennai International Airport, in terms of the Concession Agreement dated 16.06.2016 and/or payments being made by the petitioner towards Minimum Guarantee / Revenue Share pursuant to and/or under Concession Agreement and consequently direct the respondents to refund a sum of Rs. 3,31,30,829.85/- to the petitioner as collected by the Airport Authority . The petitioner submitted that since the issue is revenue neutral and since it is engaged in zero rated supply at its Arrival and Departure Duty Free Shops inside the Airports, it is eligible for refund of input tax borne by it. The court observed that the petitioner is engaged in zero rated supply and the tax liability on account of supply of goods and service at the Airport Authority is revenue neutral issue in the hands of the petitioner. Therefore, there is no useful purpose in directing the Airport Authority to pay the tax for the past period and thereafter, it is for the petitioner to file refund claims.
Held that:- The Hon’ble High Court directed that GST paid by the Airport Authority for the period between 01.01.2018 and 30.06.2019 is ordered to be refunded back to the third respondent directly subject to the verification.