Taxpayers are eligible to claim ITC on the services procured for the Operation and maintenance of vessels.
Input tax credit— Section 17(5) of CGST Act— In the instant case, applicant runs and operates a port and terminal handling facility at Sikka Port, Gujarat for receipt of crude oil and other feedstock as well as for evacuation of various finished products of the crude oil refinery set up by Reliance Industries Limited (‘RIL’) at Jamnagar.
Question on which Advance Ruling sought is as follows—
1. Whether the Applicant is entitled to avail Input Tax Credit (‘ITC’) on services procured for the operation and maintenance of Diving Support Vehicle owned by them and used by it for supplying port and terminal handling services?
2. Whether the Applicant is entitled to avail Input Tax Credit (‘ITC’) on services procured for hiring, and for operation and maintenance of Security Patrol Vessel used by it for supplying port and terminal handling services?
According to submission of revenue the subject vessels are not used for the purposes specified under Section 17(5)(a) of the Act and are, therefore, not also covered under exception provided under Section 17(5)(ab)(i) of the Act. it is opined that the applicant is not eligible for Input Tax Credit of GST paid on the subject vessels.
Section 17(5)(ab) CGST Act pertains to Blocked credit on services of repair and maintenance in so far as they relate to Vessels. Even this is not the case before us. The services supplied by the said Contractors to M/s Sikka is not limited merely to ‘Repair and Maintenance’ to Vessels but the essence and substance of the Contracts reads that the Services supplied by the said Contractors pertain to enabling discharge of liquid cargo into the sub sea pipelines and also the Services of Security Patrolling cum Pollution checks by way of operation and manning and maintenance of DSVs and SPVs respectively, by qualified crew.
The bar of blocked credit raised vide Section 17(5)(aa); Section 17(5)(ab); Section 17(5)(b)(i) CGST Act is not applicable in subject case. This authority therefore dismiss Revenue’s submission in this regard.
Held that— The applicant is entitled to avail ITC on the services procured for the Operation and maintenance of DSVs.
The applicant is entitled to avail ITC on the services procured for the Operation and maintenance of SPVs.
Taxpayers are eligible to claim ITC on the services procured for the Operation and maintenance of vessels.
Input tax credit— Section 17(5) of CGST Act— In the instant case, applicant runs and operates a port and terminal handling facility at Sikka Port, Gujarat for receipt of crude oil and other feedstock as well as for evacuation of various finished products of the crude oil refinery set up by Reliance Industries Limited (‘RIL’) at Jamnagar.
Question on which Advance Ruling sought is as follows—
1. Whether the Applicant is entitled to avail Input Tax Credit (‘ITC’) on services procured for the operation and maintenance of Diving Support Vehicle owned by them and used by it for supplying port and terminal handling services?
2. Whether the Applicant is entitled to avail Input Tax Credit (‘ITC’) on services procured for hiring, and for operation and maintenance of Security Patrol Vessel used by it for supplying port and terminal handling services?
According to submission of revenue the subject vessels are not used for the purposes specified under Section 17(5)(a) of the Act and are, therefore, not also covered under exception provided under Section 17(5)(ab)(i) of the Act. it is opined that the applicant is not eligible for Input Tax Credit of GST paid on the subject vessels.
Section 17(5)(ab) CGST Act pertains to Blocked credit on services of repair and maintenance in so far as they relate to Vessels. Even this is not the case before us. The services supplied by the said Contractors to M/s Sikka is not limited merely to ‘Repair and Maintenance’ to Vessels but the essence and substance of the Contracts reads that the Services supplied by the said Contractors pertain to enabling discharge of liquid cargo into the sub sea pipelines and also the Services of Security Patrolling cum Pollution checks by way of operation and manning and maintenance of DSVs and SPVs respectively, by qualified crew.
The bar of blocked credit raised vide Section 17(5)(aa); Section 17(5)(ab); Section 17(5)(b)(i) CGST Act is not applicable in subject case. This authority therefore dismiss Revenue’s submission in this regard.
Held that— The applicant is entitled to avail ITC on the services procured for the Operation and maintenance of DSVs.
The applicant is entitled to avail ITC on the services procured for the Operation and maintenance of SPVs.