Page 163 - GSTL_20th August 2020_Vol 39_Part 3

2020 ] IN RE : OCEAN SPARKLE LIMITED 377
terms of S. No. 17(vii) of the Notification No. 1/2018-I.T. (Rate), dated 25-1-2018
(as amended), which covers “Time charter of vessels for transport of goods.”
Before proceeding with the submission on merits, it would be pertinent
to refer to the competing entries under which the services rendered by the Tug
Jupiter, let out on charter basis by the Applicant to RIL, could be classified,
which are set out as below vide Notification No. 1/2018-I.T. (Rate), dated 25-1-
2018 read with Notification No. 8/2017-I.T. (Rate), dated 28-6-2017.

S. Chapter, Section, Description Rate Condition
No. Heading of Tax
10 Heading 9966 (ii) Time 5 Provided that credit of in-
(Rental services charter of put tax charged on goods
of transport vehi- vessels for (other than on ships, vessels
cles) transport of including bulk carriers and
goods. tankers) has not been taken

The Explanatory Notes to the classification of services under the GST Act pro-
vides as under :
Service Accounting Code 996602 : Rental services of water vessels including
passenger vessels, freight vessels etc., with or without operator :
“This service code includes rental services of all types of self-propelled pas-
senger/freight vessels including tankers, bulk dry cargo vessels, cargo and
freight vessels, tugboats and fishing vessels for coastal, inland and transo-
ceanic water transport with/without crew
Service Accounting Code 997319
S. Chapter, Section, Service Code Service Description
No. Heading or Group (Tariff)
232 Heading 9973 Leasing or rental services with or
without operator
233 Group 9973 Leasing or rental services concern-
ing machinery and equipment
with or without operator
997319 Leasing or rental services concern-
ing other machinery and equip-
ments with or without operator.

The Explanatory Notes to the classification of services under the GST Act pro-
vides as under :
Service Accounting Code 997319 : Leasing or rental services concerning oth-
er machinery and equipment with or without operator :
This service code includes :
- leasing, renting or hiring services concerning all kinds of ma-
chinery, whether or not electrical, except personal or house-
hold goods, generally used as capital goods by industry, such
as engines and turbines, machine tools, mining and oilfield
equipment, lifting and handling equipment, coin/card operat-
ed gambling machines, exhibition material, professional, sci-
entific measuring and control apparatus, accommodation and
office containers, other commercial and industrial machinery
etc.
- To expand the scope of ‘Leasing or rental services concerning oth-
er machinery and equipments with or without operator.’ as given in
the basic definition by bringing within its ambit, the im-
pugned services of leasing of Jupiter Tug’ would not normally
get covered by any stretch of imagination as the definition in-
GST LAW TIMES  20th August 2020  163