The respondent, Mohit Minerals Pvt. Ltd., filed a writ petition before the Delhi High Court challenging the levy of Integrated Goods and Services Tax (IGST) on ocean freight under the reverse charge mechanism. The contention was that such levy resulted in double taxation since the importer was already paying IGST on the entire value of goods, including freight, under the Customs Valuation Rules. The High Court ruled in favor of the respondent, holding the levy to be unconstitutional.

The Supreme Court considered appeals filed by the Union of India against the High Court’s decision. After examining the issues, the Court held that the levy of IGST on ocean freight under reverse charge was not sustainable as it led to double taxation and went beyond the scope of legislative competence. The writ petition was dismissed, and both civil appeals filed by the Union of India were allowed. The Court ordered that the parties shall bear their own costs and disposed of all pending applications accordingly.