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2014 (6) TMI 557 - AT - Service TaxClassification under Section 65 (105)(zzzzj) - supply of tangible goods - reverse charge mechanism - vessels were not located in India - The contention of the appellant is that there is no supply of vessels by the ship owners to the appellant - Held that:- The conditions precedent for Notification of reverse charge in respect of Supply of Tangible Goods from foreign service provider, the expression during the period of use appear under Rule 3 (iii) of the Rules has been interpreted by the Tribunal in the case of Petronet LNG (2013 (11) TMI 1011 - CESTAT NEW DELHI) relied upon by the appellant. The Tribunal held that for being tangible goods must be located in India during the entire period of use and it is not so located in India for any part of the period it cannot be said to be located in India and the Service Tax in respect of the same cannot be levied under the reverse charge mechanism. It is clear from the definition of "India"as extracted above that for the purpose of Import of Service Rules, non-designated area in the Continental Shelf and the Executive Economic Zone of India during the relevant period even after the amendment definition "India" included only the installations, structures and vessels in the Continental Shelf of India and the Exclusive Economic Zone itself. Apart from the above a ship is plying in the Continental Shelf and the Exclusive Economic Zone of India carrying goods or persons cannot be regarded as India for the purpose of Import of Service Rules. Further the expression ‘vessels' is preceded by the words "installation and structures". Applying the principle of Noscitur A Sociis the vessels covered therein would be such vessels which are akin to installation and structures and which are to be stationed at a fixed location in the Continental Shelf and Exclusive Economic Zone of India while rendering services. In our opinion such vessels may be of the type such as floating or submersible drilling of production platforms, generally designed for the discovery or the exploitation of offshore deposits of oil and natural gas. The vessels in question are offshore supply vessels which are different from function in a fixed or stationary position. Appellant cannot be held to be under the reverse charge mechanism in respect of vessels not located in India during the entire period of their use. In view of above, we find that the ratio of the decision of the Tribunal in the case of Petronet LNG (2013 (11) TMI 1011 - CESTAT NEW DELHI) is squarely applicable to the facts of the present case - Decided in favour of assessee.
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