In a significant development, the Supreme Court Friday recalled its April 10 verdict by which it had held that duty free shops at arrival and departure terminals at international airports are outside the purview of the Customs law and they cannot be saddled with indirect taxes like service tax.
A Special Bench comprising Chief Justice D.Y. Chandrachud and Justices J.B. Pardiwala and Manoj Misra heard Additional Solicitor-General N Venkatraman, appearing for the Centre and the Commissioner of Central Goods and Services Tax (CGST) and Central Excise of Mumbai East, and allowed their review plea against the April 10 judgement of a two-judge Bench of the top court on the issue.
While recalling the order, the Bench agreed to the contention of the law officer that there was a “breach of principle of natural justice” as the government department was not accorded the hearing.
