ISSUE:
Whether an Indian importer can be subject to the levy of Integrated Goods and Services Tax (IGST) on the component of ocean freight paid by the foreign seller to a foreign shipping line, on a reverse charge basis?
Whether GST Council recommendations are binding on Union and States?
RULE:
The levy of IGST on the service component of the transaction violates the principle of composite supply under the CGST Act.
The four canons of taxation require clear identification of taxable event, person liable to pay, rate of tax, and value to which rate applies.
A transaction having territorial nexus with India can be taxed even if some aspects occur outside Indian territory, provided there's statutory backing.
The doctrine of cooperative federalism requires that federal units have equal legislative powers unless explicitly stated otherwise in the Constitution.
The principle against double taxation prevents levying tax twice on the same transaction when it's already included in a composite supply.