Anamika Mishra
[Sub Editor]
The global shipping industry is undergoing a major transformation. With the increasing concern for climate change and sustainability, companies are now focusing on greener and more environmentally friendly ways to transport goods across the world. One of the most impressive examples of this shift is the MSC Türkiye, the world’s largest green cargo ship, which recently docked at a major international port.
The MSC Türkiye is a state-of-the-art container ship operated by the Mediterranean Shipping Company (MSC), one of the biggest names in global logistics and maritime transport. This massive ship is not just remarkable for its size, but also for its environmentally friendly design. It uses the latest green technologies to reduce its impact on the planet, setting a new standard for the shipping industry.
When the MSC Türkiye arrived at port, it was a historic moment. The ship is part of a new generation of vessels that aim to cut down harmful emissions and reduce the carbon footprint of global trade. As supply chains become more complex and globalized, the need for efficient and sustainable shipping solutions has never been more important. MSC Türkiye is a step forward in that direction.
The ship is designed to carry thousands of containers at a time, making it one of the most efficient cargo carriers in the world. What sets it apart is its use of alternative fuels and advanced energy systems. Unlike traditional cargo ships that run on heavy fuel oil, the MSC Türkiye is powered by liquefied natural gas (LNG) and features hybrid propulsion systems. This significantly reduces greenhouse gas emissions, sulfur oxides, nitrogen oxides, and other pollutants that are typically released by standard cargo vessels.
In addition to its green fuel usage, the ship is equipped with an advanced energy management system. This system ensures that energy is used efficiently throughout the vessel, from lighting and heating to cargo handling and navigation. Solar panels and battery storage also contribute to the ship's energy mix, helping to lower its overall energy demand and reduce dependency on fossil fuels.
Another important aspect of the MSC Türkiye’s design is its ability to reduce underwater noise pollution. Marine life is often disturbed by the loud noises produced by ships. The MSC Türkiye uses quiet propellers and engines that are designed to minimize disturbance to marine ecosystems, making it more ocean-friendly.
The arrival of this ship marks a major milestone not only for MSC but for the entire shipping industry. It signals a shift toward more sustainable logistics practices and highlights the urgent need for innovation in maritime transport. As global trade continues to grow, ships like the MSC Türkiye will play a crucial role in ensuring that economic growth does not come at the cost of environmental damage.
The port where MSC Türkiye docked welcomed the ship with great excitement. Port authorities and logistics companies were eager to see the new green technologies in action. The ship’s docking also gave a strong message about the future of port operations. Ports around the world are now investing in green infrastructure, such as shore power systems, electric cranes, and digital tracking tools to support eco-friendly vessels.
MSC’s commitment to sustainability goes beyond this one ship. The company has announced plans to build a whole fleet of green cargo ships in the coming years. This is part of a larger industry goal to achieve net-zero carbon emissions by 2050, as agreed upon in international climate conferences. By investing in clean technologies and promoting green innovation, MSC is helping to lead the way in the fight against climate change.
The story of MSC Türkiye is a reminder that the future of global trade can be both productive and sustainable. It proves that with the right technology, design, and vision, the shipping industry can significantly lower its environmental impact. This ship is not just a marvel of engineering, but a symbol of hope for a cleaner, greener future.
As more companies adopt such solutions, and governments provide incentives for sustainable transport, we can expect to see more green giants like MSC Türkiye sailing across our oceans. These ships will not only carry goods but also carry the promise of a better world—one where progress and the planet go hand in hand.
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Anamika Mishra
[Sub Editor]
In a significant judgment, the Gujarat High Court recently ruled that the Integrated Goods and Services Tax (IGST) paid voluntarily on ocean freight is refundable, even if the application for refund is filed after the time limit mentioned under the GST laws. This decision brings relief to importers and exporters across India who had paid IGST on ocean freight charges under protest or by
mistake.
To understand this better, let’s look at the background. When goods are imported into India via sea routes, there are shipping charges involved, known as "ocean freight." Earlier, under the interpretation of GST laws, the government required importers to pay IGST on these charges under the reverse charge mechanism. In simple words, importers were made responsible for paying tax on services provided by foreign shipping companies. Many businesses, to stay on the safer side, paid this IGST voluntarily. However, the situation changed after the Supreme Court, in the landmark Mohit Minerals Pvt. Ltd. case, ruled that IGST on ocean freight in CIF (Cost, Insurance, and Freight) contracts was not valid under GST law. This left many importers wondering whether they could claim a refund for the amounts they had already paid.
In the case recently heard by the Gujarat High Court, an importer had paid IGST on ocean freight and later applied for a refund after the Supreme Court’s judgment. The GST department, however, rejected the refund application, saying that it was filed after the two-year time limit allowed under Section 54 of the CGST Act. The importer challenged this rejection before the Gujarat High Court. The court, after hearing the arguments, ruled in favor of the importer. It stated that the IGST collected on ocean freight was not legally due and hence not considered a "tax paid" under GST law. Since the payment was made due to a mistake of law, it should be treated as a deposit or mistaken payment, and not as a regular tax. Because of this, the general law of refunds would apply, and not the time limits mentioned in GST law.
The court emphasized that the government cannot retain money that was collected without proper legal authority. It highlighted that when a taxpayer pays money believing it to be a tax when it’s later declared not to be, it becomes the government’s responsibility to return it. Denying the refund just because the application was late would amount to injustice. The court firmly stated that the time limit under Section 54 does not apply to such mistaken payments, and taxpayers have the right to get their money back. This ensures that public money is not kept by the government without a lawful basis.
This ruling is crucial because it brings clarity for many importers across the country who paid IGST on ocean freight and were later denied refunds because of the time bar. It not only allows them to claim refunds now but also strengthens the principle of fairness in tax administration. It means the government cannot profit from rules that were later struck down as illegal. Businesses affected by this issue should now review their past transactions and check whether they have paid IGST on ocean freight. If they have, they can apply for a refund even if the two-year period has passed, by citing this Gujarat High Court decision. If refund claims are still rejected, they can consider going to court with stronger legal backing.
In conclusion, the Gujarat High Court’s judgment is a big win for fairness and justice. It supports taxpayers who followed rules that were later found invalid, ensuring they are not punished for doing what they thought was legally correct. The ruling sets a positive example for how tax disputes should be handled, with compassion, logic, and fairness. It is now hoped that GST authorities and other High Courts across India will follow the same approach and ensure that businesses get the refunds they rightfully deserve.
Explore the latest edition of Journal of Supply Chain Magazine and be part of the JOSC Daily News Bulletin.
Discover all our upcoming events and secure your tickets today.
Journal of Supply Chain is a Hansi Bakis Media brand.
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