Page 151 - GSTL_20th August 2020_Vol 39_Part 3

2020 ] IN RE : HALLIBURTON OFFSHORE SERVICES INC. (DRILL BITS) 365
the Assistant Commissioner of State Tax, as the case may be, (having juris-
diction over the supplier of goods, at the time of outward supply of goods),
a certificate from a duly authorized officer of the Directorate General of
Hydro Carbons in the Ministry of Petroleum and Natural Gas, Government
of India to the effect as specified therein the Notification”.
RULING
Question a : Whether the import of drill bits for supply to ONGC at its
location in India on consumption basis involves two sup-
plies namely,
- Import into India of drill bits; and
- Indigenous movement from the port of import to
ONGC’s location.
Answer a : Affirmative
Question b : If two supplies are involved in the abovementioned
transaction then whether two Essentiality Certificates
(‘EC’) are required to be issued i.e.
(i) one for import of drill bits into India under Serial
No. 404 of Notification No. 50/2017-Cus., dated 30
June, 2017; and
(ii) another for indigenous movement under Notifica-
tion No. 3/2017-Central Tax (Rate), dated 28 June,
2017 respectively
Answer b(i) : In terms of Serial No. 404 of Notification No. 50/2017-
Cus., dated 30 June, 2017 (‘Customs Notification’), a con-
cessional rate of Customs duty (BCD - NIL and IGST -
5%) is prescribed for specified goods mentioned in List
33, required in connection with petroleum operations un-
dertaken under petroleum exploration license or mining
leases granted by the Government to ONGC and the ben-
efit of concessional rate of Customs duty (i.e. BCD - NIL,
IGST - 5%) is available subject to fulfilment of conditions
listed in Sl. No. 48 of the Customs Notification including
the producing to the jurisdictional Deputy Commissioner
of Customs or Assistant commissioner of Customs, a cer-
tificate from a duly authorized officer of the Directorate
General of Hydro Carbons in the Ministry of Petroleum
and Natural Gas, Government of India to the effect as
specified therein the Notification”.
Answer b(ii) : The entitlement or eligibility or applicability of exemp-
tion from central tax under Notification No. 3/2017-
Central Tax (Rate), dated 28-6-2017 to the supply of goods
(drill bits) to the delivery stations of ONGC is only upon
fulfilment of conditions specified in the said Notification -
including the one of :
“producing to the Deputy Commissioner of Central Tax
or the Assistant Commissioner of Central Tax or the
Deputy Commissioner of State Tax or the Assistant
Commissioner of State Tax, as the case may be, (having
GST LAW TIMES  20th August 2020  151