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2021 (12) TMI 113 - AAR - GSTInput Tax Credit - services procured for the operation and maintenance of Diving Support Vehicle owned and used for supplying port and terminal handling services - services procured for hiring, and for operation and maintenance of Security Patrol Vessel used for supplying port and terminal handling services - blocked credit or not - HELD THAT:- 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 - Scope of Contract entered with the said Contractors cannot fall merely under the Repair and Maintenance category on these vessels. Thus Section 17(5)(ab) CGST Act does not come into picture in present case. Section 17(5)(b)(i) CGST Act pertains to blocked credit on renting or hiring of vessels. As already discussed in the aforementioned paragraphs of this Ruling, we find no merit to term and limit the services supplied by the Contractors to M/s Sikka as merely hiring/ renting of vessels, for the services are for the Operation and Maintenance of Vessels to perform and enable, inter alia, i. Transportation/ discharge of cargo; ii. security patrolling services. 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 - ITC is available for both the cases - application allowed.
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