Page 178 - GSTL_14th May 2020_Vol 36_Part 2

280 GST LAW TIMES [ Vol. 36
for management of commercial relationship with respect to SATCOM services
(MOU No. DOS/NSIL/MOU/2019 signed on 13 June 2019 enclosed as
Annexure-1)
As per MOU, Satellite Communication Program Office (SATCOM PO),
on behalf of DOS, allocates satellite transponders/space segment capacity to var-
ious customers and enters into an agreement/MOU with the Customers in this
regard. In this agreement/MOU, NSIL is designated as “Contract Manager” and
is vested with the rights and powers to administer the agreements/MOUs in its
entirety. Towards this, NSIL carries out activities related to interfacing with cus-
tomers and SATCOM-PO for formulating and finalizing the Agreements,
amendments, securing caution deposits and bank guarantees, invoice raising and
payment receipts. Provisioning of space segment capacity on a transponder from
a satellite to user, involves leasing of transponder capacity to the user for a spe-
cific period of time for his use. For ease of understanding, this activity could be
considered analogous to leasing out a Flat to a tenant, wherein the owner (in case
of transponder it is DOS/NSIL) lets out the flat (equivalent of transponder) and
the tenant (transponder capacity user) utilizes the flat (transponder capacity) for
his purpose for a specific period of time.
Following relevant clauses of the agreement indicating provisioning of
space segment capacity as leasing of transponder capacity is indicated below for
reference (Copy of agreement enclosed as Annexure-2).
(I) Article 2, Transponder capacity of the Agreement - It states that
DOS provides certain bandwidth capacity on a satellite (part of
INSAT/GSAT system) to the user and this space segment capacity
is known as transponder capacity. Both the term, space segment ca-
pacity and transponder capacity are used interchangeably.
(II) Article 5, Operational Requirements of the Agreement - It reflects
that the ownership of satellite rests with DOS, GOI and only the
transponder capacity is made available to the user to meet their re-
quirements. Hence only transponder capacity is leased to the cus-
tomer. The rights over transponder, satellite and orbital resource
rests with DOS/GOI.
(III) Frequency Allotment Letter - For example, DOS, vide Letter No.
SATCOM PO/F.631/157 dated February 12, 2020 allotted 3 MHz C
band capacity on Transponder No. C10 of GSAT-10 satellite. (A
copy of frequency allotment letter attached as Annexure-3). The cus-
tomer will be entitled to utilize this 3 MHz bandwidth for their up-
linking and downlinking of carriers and will pay a fixed charge for
the same on a periodical basis. Once the agreement ends, the said
leased capacity will automatically come back to DOS and will be
further available for leasing to other users for which separate allot-
ment and agreement will be entered into.
(IV) Few other relevant Definitions :
(a) INSAT/GSAT System [Annexure-1, Definitions (8)] - INSAT/
GSAT System means the system built and operated by
ISRO/DOS at a given orbital location and satellite capacity
leased by ISRO/DOS with Government approvals.
(b) Space Segment Capacity [Annexure-1, Definitions (16)] -
‘Space Segment Capacity’ or Transponder Capacity’ or ‘ca-
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