Page 161 - GSTL_20th August 2020_Vol 39_Part 3

2020 ] IN RE : OCEAN SPARKLE LIMITED 375
same provision under the APGST Act. Further, henceforth, for the purposes of
this Advance Ruling, a reference to such a similar provision under the CGST or
APGST Act would be mentioned as being under the GST Act.
3. Brief facts of the case :
M/s. Ocean Sparkle Limited is a company (hereinafter referred to as the
Applicant) incorporated on 26-7-1995 having its registered address at Plot No.
128, Srinagar Colony, Hyderabad, Telangana. The applicant is engaged in the
business of providing comprehensive port operations and management services
which inter alia includes provision of technical management of marine crafts,
harbour towage services, mooring services, pilotage services etc.
The applicant had filed an application in Form GST ARA-01, dated 31-7-
2019, by paying required amount of fee for seeking Advance Ruling on the fol-
lowing issues, as mentioned below.
4. Question raised before the Authority :
This application for Advance Ruling is being filed seeking the rate of
IGST on vessel charter hire charges?
On Verification of basic information of the applicant, it is observed that
the applicant falls under State jurisdiction, i.e. Assistant Commissioner (ST), Ka-
kinada Circle. Accordingly, the application has been forwarded to the jurisdic-
tional officer and a copy marked to the Central Tax authorities to offer their re-
marks as per Sec. 98(1) of CGST/APGST Act, 2017.
In response, remarks are received from the jurisdictional officer con-
cerned stating that there are no proceedings lying pending or passed relating to
the applicant on the issue, for which the Advance Ruling sought by the appli-
cant.
5. Applicant’s interpretation of law and facts :
5.1 The Applicant submits that the Tug Jupiter let out by it to RIL on
charter is correctly classifiable under SAC 996602 as ‘Rental Services of water ves-
sels including passenger vessels, freight vessels and the like with or without operator’ as
the said Code covers hiring of water vessel for transportation of goods and thus,
would attract GST @ 5% in terms of Sl. No. 10(ii) which covers ‘Time charter of
vessels for transport of goods.’
5.2 The expression ‘Goods’ has been defined in Section 2(52) of the
CGST Act, 2017 to mean “every kind of movable property other than money and securi-
ties but includes actionable claim, growing crops, grass and things attached to or forming
part of the land which are agreed to be severed before supply or under a contract of sup-
ply”. The Tug Jupiter has been chartered for undertaking inter alia the following
activities (the primary gamut of activities enlisted at para 7 of the Annexure-I to
this application) :
• Transporting the hawser and hose pipe to the tanker which has
been berthed for loading the crude oil from the FPSO.
• Passing mooring hawser pick-up rope and floating hose tail end
from FPSO to Off-take Tanker.
• Passing floating hose string from FPSO stern to Off-take tanker mid-
ship cargo manifold.
5.3 The Applicant submits that inasmuch as the primary function car-
ried out by the Tug Jupiter is one of transporting the hawser and hose pipe,
which in-turn is clearly covered within the scope and ambit of the expression
GST LAW TIMES  20th August 2020  161