Page 61 - GSTL_20th August 2020_Vol 39_Part 3

2020 ] IN RE : HALLIBURTON OFFSHORE SERVICES INC. (LIH) 275

2020 (39) G.S.T.L. 275 (A.A.R. - GST - A.P.)
BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
ANDHRA PRADESH
S/Shri D. Ramesh, Member (State Tax) and M. Sreekanth,
Member (Central Tax)
IN RE : HALLIBURTON OFFSHORE SERVICES INC. (LIH)

AAR No. 16/AP/GST/2020, dated 13-5-2020
Reimbursement towards Lost in Hole/Damage beyond Repair of
equipment/tool - Reimbursement of LIH equipment/tools entirely different
from liquidated damages/compensation for any breach of contract (including
delay) as agreed upon between parties - Equipment/tools are tangible and
movable - Amount of reimbursement of equipment/tools which damaged be-
yond repair or loss at an agreed depreciated value of original FoB price of such
equipment/tools - Going by methodology and by nature of equipment/tools,
activity of reimbursement towards lost in hole/damage beyond repair of
equipment/tools rightly classifiable as ‘Supply of Goods’ - Depending upon
nature of actual goods involved in subject activity and classification to be in
accordance with HSN notified for goods and Classification Rules made in this
regard - Provisions relating to chargeability and levy of GST under Central
Goods and Services Tax Act, 2017 and Rules made thereunder as applicable to
supply of goods will apply - Section 7 of Central Goods and Services Tax Act,
2017. [paras 7.5, 7.6, 7.7, 7.8, 7.9, 7.10]
Precedent - Advance Ruling - Applicable to individual applicant alone
- Cannot be made applicable to issue of different person. [para 7.5]
Ruling in favour of department
CASES CITED
Maharashtra State Power Generation Company Limited
— 2018 (13) G.S.T.L. 177 (A.A.R. - GST) — Referred .................................................... [Paras 6.23, 7.5]
Maharashtra State Power Generation Company Limited
— 2018 (17) G.S.T.L. 451 (App. A.A.R. - GST) — Referred .......................................... [Paras 6.23, 7.5]
REPRESENTED BY : Shri Shyam Sundar Bangaru, for the Assessee.
[Order]. - The present application has been filed u/s. 97 of the Central
Goods & Services Tax Act, 2017 and AP Goods & Services Tax Act, 2017 (herein-
after referred to CGST Act and APGST Act respectively) by Halliburton Offshore
Services Inc. (LIH) (hereinafter referred to as applicant), registered under the
Goods & Services Tax.
2. The provisions of the CGST Act and APGST Act are identical, except
for certain provisions. Therefore, unless a specific mention of the dissimilar pro-
vision is made, a reference to the CGST Act would also mean a reference to the
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 :
3.1 Halliburton Offshore Services Inc. is a global service provider, en-
gaged in providing various oilfield services to Exploration and Production com-
panies across the globe. Presently, the applicant has contracted for supply of
GST LAW TIMES  20th August 2020  61