9911796707
TMI Blog2019 (10) TMI 1138X X X X Extracts X X X X X X X X Extracts X X X X ..... while staying anchored at a port in India. There is no reason why the part of such stores that the crew consume or is used for repairing or servicing of the vessel while in India should be treated as export. The Applicant s supply of stores to foreign going vessels, as defined under section 2(21) of the Customs Act, 1962 Act, is not export or zero-rated supply, unless it is marked specifically for a location outside India - The Applicant is, therefore, liable to pay tax on such supplies under the GST Act or the IGST Act. - Case Number 36 of 2019 and Order No. 20/WBAAR/2019-20 - - - Dated:- 21-10-2019 - Ms. Susmita Bhattacharya and Mr. Parthasarathi Dey, Member Applicant s representative heard: Sri Abhishek Dugar, FCA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovision of the CST Act. The concerned officer from the Revenue does not object to the admission of the Application. 1.3 The Application is, therefore, admitted. 2. Submissions of the Applicant and the Revenue 2.1. Customs frontier of India, as defined under section 2(4) of the IGST Act, means the limits of a customs area as defined in section 2 of the Customs Act, 1962 (hereinafter the 1962 Act). Section 88(a) of the 1962 Act provides that any warehoused goods may be taken on board any foreign going vessel as stores without payment of import duty if a shipping bill or a bill of export has been presented in respect of such goods in the prescribed form, the export duty etc. has been paid and the proper officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oing vessel, may be construed as being taken to a place outside India. 3.2 Warehoused goods can either be cleared for home consumption or exported. However, when used as stores in a foreign going vessel, such goods are neither taken out of India (unless they are specifically marked for a foreign destination) to a place outside India nor cleared for home consumption. At the same time, they need documentation like export because such goods cross the limits of the customs area when taken on board the foreign going vessel. 3.3 In terms of the Central Sales Tax Act, 1956, a sale in the course of export takes place when the goods cross the limits of the customs area. However, the export of goods under section 2(5) of the IGST Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.5 The Applicant s reference to the ruling of the AAR, Andhra Pradesh, referred to above, is misplaced. The supplier there is supplying warehoused goods as stores to the merchant ships on the foreign run where the goods are not to be consumed until the vessel crosses the territorial waters of India. In other words, the foreign going vessel is merely transporting the stores until it reaches a location outside India. Facts of the Applicant s case are not similar or that specific. Foreign going vessels obtain stores and spare parts while staying anchored at a port in India. There is no reason why the part of such stores that the crew consume or is used for repairing or servicing of the vessel while in India should be treated as export. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
