Page 154 - GSTL_16th July 2020_Vol. 38_Part 3

392 GST LAW TIMES [ Vol. 38
partially smooth waters under clause (41) of Section 3 of the
Merchant Shipping Act, 1958 (44 of 1958);
14.2.1 The 1st category of the term “inland water” comprises of “any
canal, river, lake or other navigable water within a state”, as mentioned here-
inabove. According to this, waterways on any canal, river, lake or other naviga-
ble water within a State, will be the part of “Other waterway on any inland water”.
14.2.2 In this regard, we find that the applicant is providing service re-
lating to transportation of goods in the water way, i.e. from Magdalla Port to its
General Lighterage Area (Anchoring Point of Mother Vessel) or vice versa. This
waterway is a part of the Arabian Sea. Whereas, the term “Other waterway on any
inland water” covers any canal, river, lake or other navigable water within a State
only. The length of the waterway, between which the service of transport is per-
formed by the applicant, is the part of the “Arabian Sea” and not a part of any canal,
river, lake or other navigable water within a State. Thus, their contention, that the trans-
portation is being done on the River Tapi, appears to be incorrect.
14.3 As regard the contention that the entire activity is being done by
them under territorial water only, it is worthwhile to mention that the Arbian Sea
is not a part of the State of Gujarat and, hence, not covered under the term “Oth-
er waterway on any inland water” so as to be eligible for exemption of the Ser-
vices by way of transportation of goods by inland waterways.
14.4 Thus, we find that the service of transportation of goods in barrag-
es from mother vessel to daughter vessel from Magdalla Port, Surat to its General
Lighterage Area of Magdalla Port does not get covered in the definition of ‘other
waterway on any inland water’, as defined under Clause (b) of Section 2 of the In-
land Vessel Act, 1917.
15. In view of the above, we conclude that the service of transportation
of goods in barrages from mother vessel to daughter vessel from Magdalla Port,
Surat to its General Lighterage Area of Magdalla Port is neither covered in the
definition of ‘national waterways’, as defined in Clause (h) of Section 2 of the In-
land Water Ways Authority of India Act, 1985 nor covered in the definition of
‘other waterway on any inland water’, as defined under Clause (b) of Section 2 of the
Inland Vessel Act, 1917. Consequently, the same does not qualify for exemption
contained at Sr. No. 18 of the Notification No. 12/2017-Central Tax (Rate), dated
28-6-2017.
16. In light of the foregoing, we rule as under -
RULING
Ques. 1 : Whether the service of transportation of goods from Magdalla Port,
Surat to its General Lighterage Area of Magdalla Port (From where
the Mother Vessel are anchored) or vice versa, is covered under ex-
emption contained at Sr. No. 18 of Notification No. 12/2017-
Central Tax (Rate)?
Answer : Answered in the negative, as discussed above.
Ques. 2 : Whether the service of above transportation falls in the definition of
‘Inland waterways’?
Answer : Answered in the negative, as discussed above.
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GST LAW TIMES  16th July 2020  154