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2016 (2) TMI 220 - CESTAT MUMBAI

2016 (2) TMI 220 - CESTAT MUMBAI - 2016 (45) S.T.R. 341 (Tri. - Mumbai) - Place of receipt of services - within in domestic services or outside India - location of fixed establishment. - RIL was not paying service tax on the belief that the imported services are used outside the territorial waters of India viz., beyond 12 nautical miles (NM) to which provisions of the Finance Act, 1994 are not extended. - Application of provisions of Taxation of Services (Provided from Outside India and Received .....

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ons etc in the CS and EEZ in contradistinction to Not 14/2010 which also extends the taxable territory to the whole of the sea-bed and thus the services provided to the sea-bed are not taxable. - Service tax is payable on the services namely “Commercial Training and Coaching service” and “Management Consultant Service”. Appropriate interest on demand confirmed in respect of these two services is payable. However no penalty is imposable - Decided partly in favor of assessee. - Appeal No. ST/8 .....

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under Production Sharing Contracts(PSC). It uses services of different persons/companies for exploration and extraction activities. It is alleged that RIL has been receiving services from service providers who have a fixed establishment or have their permanent address or usual place of residence from where service is provided, in a country other than India. As per provisions of Section 66A of the Finance Act, 1994 read with Taxation of Services (Provided from Outside India and Received in India .....

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services are used outside the territorial waters of India viz., beyond 12 nautical miles (NM) to which provisions of the Finance Act, 1994 are not extended. Revenue viewed that provisions of Chapter V of the Finance Act, 1994 are extended to installations, structures and vessels in the continental shelf of India (CS) and the exclusive economic zone of India(EEZ) vide Notification No. 1/2002-Service Tax dated 01-03-2002, as amended by Notification No. 21/2009-Service Tax dated 07-07-2009, and he .....

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volumes of hydrocarbons. * Carry out an economic analysis based on the prognosticated volumes. * Estimate the activities to be carried out at the prospecting stage and post-prospecting stage in order to firm up the Minimum Work programme. Stage 2 : Prospecting Stage It is up to a stage when probable sites for drilling are earmarked : * Reprocessing of the existing 2D / 3D seismic data, if any, obtained in the data packages obtained from DGH. * In case any wells have been drilled earlier on the s .....

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processing and interpretation of geological data like multi-beam, seabed survey, measurement of heat flow in sub-surface, etc. * Integration of all available evidence from geological, geophysical, petro-physical studies to identify leads for drilling Stage 3 : Post-prospecting stage Once sites which merit attention are identified, further activities are carried out. Stage 3.1. Evaluation of lead upto prospect maturation: * Advanced geo-scientific studies like basin / structure modeling, petroleu .....

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The end result of this stage is a prospect which is handed over to the exploration team. Stage 3.2 Exploration Drilling of recommended prospect & Notify the discovery to Govt. of India, if any, hydrocarbon is encountered during drilling Stage 3.3. Appraisal * Submission of appraisal plan to ascertain the potential commercial interest of the discovery for development * Carry out Appraisal activities which include, inter-alia, acquisition, processing and interpretation of additional 2 D, 3 D .....

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roduction. * Operate & maintain the production facilities like pipeline, platform, manifolds, umbilical, etc. (Sub-surface, sub-sea and on land) for hydrocarbon extraction 3. RIL provided details of payments made in foreign currency, vendor-wise upto 2009-2010 for services received by them as service recipient from different foreign service providers in connection with exploration and production of oil and gas; however, they had not paid the Service Tax in some cases, citing the reason that .....

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rvice tax. Further, in case of vessels, the services provided from the vessel to the sea bed or to other outer areas which are not part of India will not attract service tax. So, on such taxable services rendered by foreign service providers, they, as recipient of service, were not liable to pay Service Tax, prior to 27-02-2010. 5. In the SCN it is stated that different equipments and vessels along with the required manpower to operate the same are used for the exploration of oil & gas by .....

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bilical to extract the oil & gas form a structure or installation individually and severally on its own. The various services received for the erection of entire structure are the important part of the exploration activity carried, leading to It is further stated that in complete formation, which will lead to extraction of oil. Only after completion of the entire formation is the extraction activity of the oil & gas carried out, which may require trouble free and unhindered maintenance o .....

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road or India but consumed at locations to which provision of Finance Act, 1994 are not extended ... It is further stated in the SCN that .. Moreover, RIL claim of their fixed establishment at blocks allotted to them is contrary to their own claim that there is no structure or installation in the CS and EEZ of India. The SCN goes on to state .. As clarified by CBEC vide circular dated 27-07-2005, a fixed establishment should have both the technical and human resources necessary for providing or .....

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gorized the services provided under different classifications and vide SCN dated 21.04.2011 demanded service tax under various categories of services provided to installations, structures and vessels by the service providers who are not having fixed establishment in India, under the reverse charge mechanism prescribed in Section 66(A) of Finance Act, as shown in the table below. Penalties were also sought to be imposed under Sections 76,76 and 78 of the Finance Act. TABLE DETAILS OF SERVICE TAX .....

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mercial Training & Coaching Service Zzc 3(ii) 947,336 97,576 Consulting Engineering Service G 3(iii) 9,509,584 979,487 Erection, Commissioning & Installation service Zzd 3(ii) 323,233,458 33,293,046 Management or Business Consultants Service R 3(iii) 19,764,254 2,035,718 Management, Maintenance & Repair Service Zzg 3(ii) 39,120,054 4,029,366 Manpower Recruitment & Supply Agency Service K 3(iii) 162,414,863 16,728,731 Scientific & Technical Consultancy Service Za 3(iii) 21,35 .....

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4/- already paid by the respondent towards Management maintenance or repair service . The proceedings initiated under Show cause notices V.ADJ(SCN)15-32/LTU-M/2011-12 dated 8.03.2012 ; V.ADJ(SCN) 15A-11/LTU-M/2011-12 dated 08-06-2012 & F.No. LTU/MUM/GLT-3A/RIL/SCN-DGCEI-Ahmd/05/2011-12 dated 27.05.2013 were also dropped. 7. The Ld Advocate Shri V K Jain appearing on behalf of RIL made the following submissions. 7.1. RIL, either individually or along with other members of the consortium such .....

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aring Contract (PSC) with the Government. 7.2. Referring to the Hon ble Bombay High Court decision in the case of Greatship India Ltd vs CST 2015 (39) STR 754 it was submitted that the law that a judgment is a binding precedent till it is not stayed or set aside by a higher forum is settled by the Apex Court in the case of Kamalakshi Finance Corporation Ltd. 1991 (55) ELT 43 (SC). 7.3. On the reference to the Taxation of Services (Provided from Outside India and Received in India) Rules, 2006 Ru .....

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il of the submarine areas in the CS and EEZ of India, said seabed should be regarded as part of India after 7.7.2009. Ld. advocate contended that the exploration services in dispute were provided to, as also consumed by, the seabed in the CS and EEZ and were not provided to or consumed by installations, structures and vessels in the CS and EEZ of India. In respect of all services provided to and consumed by installations, structures and vessels in the CS and EEZ, applicable service tax had been .....

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ded in Row-9 of Form ST-7 that the services received by RIL were for survey and exploration of mineral oil and natural gas at offshore locations in the CS and EEZ of India. It was submitted that survey and exploration is a pre-construction activity, these services were consumed in the block (sea-bed) in the CS and EEZ where there were no installations, structures and vessels. 7.5. With effect from 1.7.2012 India has been defined in Section 65(B)(xxvii) of the Finance Act to mean India means - .....

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vessels located in the continental shelf of India and the exclusive economic zone of India, for the purposes of prospecting or extraction or production of mineral oil and natural gas and supply thereof; Legislature has treated the CS and EEZ of India as distinct from the installations, structures and vessels in the CS and EEZ of India for the purpose of prospecting or extraction or production of mineral oil and natural gas and supply thereof. Undisputedly service tax is a destination based cons .....

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ed consequent to withdrawal of exemption Notification No.6/99 dated 9.4.1999 by which exemption had been granted from the levy of service tax in respect of all services for which payment was received in convertible foreign exchange. 7.6. The services of survey and exploration have been consumed by the block (sea-bed) and each of the blocks being a separate venture, all members of the consortium for each particular block have agreed to maintain separate accounts qua each block. Since the services .....

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t open to Ld. AR Commissioner to contend that only provision of service was the criteria and not consumption thereof. If the argument being advanced by the Ld. AR Commissioner was taken to its logical conclusion it would imply that a company which is incorporated in India and has global operations would be liable to tax even in respect of services which are consumed for business operations being undertaken overseas. For example, if TCS undertakes rendition of software services from USA, UK and .....

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s operating outside India, were to be operators then going by the arguments advanced by the Ld. AR Commissioner, the two being overseas entities, the services in question would have been consumed outside India and would not have attracted liability to service tax. What is to be seen is whether the business for which the services are consumed is carried on in India or otherwise. 7.8. In the appeal filed by Revenue the ground of liability to tax under the Taxation of Services (Provided from Outsid .....

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lation, structure or vessel, of India, the levy to service tax itself is not attracted and consequently the question of resorting to the Rules for determining whether such services were received in India does not arise. The judgment of the Supreme Court in the case of Ispat Industries Ltd. v. CCE reported in 2006 (202) ELT 561 (SC) is relied upon in support of this proposition. The judgment of the Apex Court in the case of Nautam Prakash DGSVC, Vadtal and Ors. V. K K Thakkar AIR 2006 SC 2075 is .....

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as to be stationed at a fixed location and intended to be stationed permanently (permanence is the test) in the CS & EEZ. The Hon ble CESTAT in the respondents own case reported in 2014-TIOL-940-CESTAT (supra), in the context of the very same notification for the very same period, has taken this very view. 7.10. The expression installations or structures had been borrowed from Notification No.1/2002-ST dated 1.3.2002, by which provisions of the Finance Act, 1994 were extended to the designa .....

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ng, co-ordinates of which were specified therein as the designated areas. A perusal of the said schedule to the said Notification would show that the installations, structures and platforms being referred to therein were permanent structures established for the purpose of production of mineral oil and natural gas with specific co-ordinates and do not cover a vessel rendering services while traversing across the CS & the EEZ. Since the expression installations or structures has been borro .....

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tly stationed like a FPSO/platform having fixed co-ordinates and not a vessel traversing across the CS and EEZ while rendering the services. 7.11. The review ground that soon after the construction activity starts, a structure comes into existence is also beyond the scope of the allegations leveled in the notice. The admitted position in the notice is that there were no installations or structures. Shri Raghavan in his statement specifically stated that only after a well which is drilled is cove .....

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the Finance Act, 1994 was extended to the whole of CS & EEZ of India as against only to installations, structures and vessels located in the CS and EEZ of India by Notification No. 21/2009. 7.13. Revenue s ground that the individual contracts were required to be examined to buttress the argument regarding services having been received in India, by applying the Rules 2006, is not taken in the Appeal. This is against settled law. Reliance is placed on the judgment in the case of CCE vs Oswal V .....

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PSO would be handed over to RIL who were free to appoint its own master and crew. Such a bare boat charter could not be taxed under the head of STGU as the effective control had been passed on to RIL. Reliance is placed on Section 115V(a) of the Income Tax Act, which defines the term bare boat charter and on the order dated 10.12.2008 passed by Additional Director of Income Tax (International Taxation) wherein the income tax authorities had, after taking cognizance of the fact that the contrac .....

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. Vol. 43, para 401, it is said : A contract for the carriage of goods in a ship is called in law a contract of affreightment. In practice these contracts are usually written and most frequently are expressed in one or other of two types of document called respectively a charterparty and a bill of lading. In para 402 we read that a contract by charterparty is a contract by which an entire ship or some principal part of her is let to a merchant, called the charterer, for the conveyance of goods .....

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rvices of the master and crew. 43. Thus for the purposes of ascertaining the responsibility of a charterer in respect of the cargo shipped and landed, it would be necessary to know not only the stipulations between the shipper i.e. the owner of the cargo and the charterer, evidenced by the bill of lading and also those between the charterer and the owner of the ship. If the charter is by way of demise the problem would be simple inasmuch as the bill of lading will be purely between the shipper a .....

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crew, or bareboat charter", where the hull is the subject matter of the charterparty, and (2) charter with master and crew, under which the ship passes to the charterer in a state fit for the purposes of mercantile adventure. In both cases the charterer becomes for the time being the owner of the ship; the master and crew are, or become to all intents and purposes, his employees, and through them the possession of the ship is in him. The owner, on the other hand, has divested himself of al .....

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Although a charterparty which does not operate as a demise confers on the charterer the temporary right to have his goods loaded and conveyed in the ship, the ownership remains in the original owner, and through the master and crew, who continue to be his employees, the possession of the ship also remains in him. Therefore, the existence of the charterparty does not necessarily divest the owner of liability to third persons whose goods may have been conveyed on the ship, nor does it deprive him .....

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a demise, the charterers right vis-a-vis the owner depends upon the terms of the contract. The contract of carriage is personal to the charterer, and he cannot call upon the shipowner to undertake liabilities to third persons or transfer to third persons his own liabilities to the shipowner unless the contract so provides. A charterparty has to be construed so as to give effect, as far as possible, to the intention of the parties as expressed in the written contract. The stipulations of char .....

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r. Where there is a bill of lading relating to the goods, the terms of the contract on which the goods are carried are prima facie to be ascertained form the bill of lading. However, if a shipper chose to receive a bill of lading in a certain form without protest he should ordinarily be bound by it. Thus, it cannot be said that the bill of lading is not conclusive evidence of its terms and the person executing it is not necessarily bound by all its stipulations, unless he repudiates them on the .....

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e charterer the bill of lading may in some cases have the effect of modifying the contract as contained in the charterparty, although, in general, the charterparty will prevail and the bill of lading will operate solely as an acknowledgement of receipt. There being no dispute in the present case that the master and crew was to be appointed by the Respondent, the hire of the FPSO was a bare boat Charter where the effective control vested with Respondent and consequently no service tax was leviabl .....

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2010-11 dated 21.05.2010 and the Honble Tribunal 2014-TIOL-940-CESTAT held that the demand was unsustainable. 7.16. In respect of hiring of remote operated vehicles (ROV) with M/s Oceaneering International AG, the service tax authorities had assessed and appropriated service tax under the head of mining services, when being rendered within 12 nautical miles of the territory of India. It was only in respect of services rendered beyond 12 nautical miles, that tax was being demanded under the head .....

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CST) (supra). 7.17. The fourth contract that has been referred to by Ld AR was with M/s Aker Kvaerner Subsea Ltd. The said contract was for technical direction and onsite supervision during installation & pre commissioning of subsea facilities / equipment. Since the said service was consumed by the Respondents business located in an offshore location i.e. the sea bed beyond 12 NM where no installation, structure or vessel existed, the said service does not attract the levy. 7.18. The fifth .....

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was performed totally outside India. Therefore, the said service does not attract the levy. 7.19 The ground in Revenues appeal that every activity of Survey & Exploration leads to construction of installations/structures is both incorrect, baseless, and beyond the scope of allegations levelled in the notice. Nothing can illustrate this better than the fact that out of the 33 blocks which were licensed to the respondent and where Survey & Exploration work was carried out, as many as 30 h .....

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ns: (1) Show Cause Notice does not seek to apply Notification No. 14/2010 dated 27.02.2010 retrospectively. Paragraph numbers 9.2 & 9.3 of SCN elaborate the applicability of Notification No. 21/2009, and also bring out the fact that the facilities for production, including the pipeline, platform, umbilicals etc., are called structures. Further Notification No. 21/2009 is much wider in scope than the Notification No. 14/2010. The SCN only says that Not 14/2010 reinforces the intention of the .....

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ng services to rigs. (ii) Another major element of demand relates to hiring of equipment which was to be placed on rigs or used on the vessels and was thus covered within the scope of Notification No. 21/2009; (iii) A major contract was for hiring of Remote Operated Vehicle Packages(ROV) operated by a crew out of a cabin placed on the rig. They are linked to the rig by either a neutrally buoyant tether or, often, when working in rough conditions or in deeper water, a load-carrying umbilical cab .....

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of the judgment of Hon ble High Court; (vi) Appeal against Greatship (India) judgment is admitted by Honble Supreme Court which while admitting the appeal and the stay application had observed Parties are directed to complete the pleadings at the earliest. The matter will be heard on the SLP paper books . It was accordingly submitted that applying the ratio of the judgment of Honble High Court of Bombay in the case of Commissioner of Customs, C. Ex and Service Tax vs. Jolly Board Ltd. 2015(32 .....

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n was being sought to be created that Notification No. 21/2009 sought to tax services only provided to structures, installations and vessels in the EEZ and CS of India. For the purpose of provisions of Chapter V of Finance Act, 1994, the services provided by any person from or through or upon or to these vessels etal will be treated as services provided in India. Services are received by a person, and not by an inanimate object, and in these cases the person is providing service to RIL. Reliance .....

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d on an incorrect reading of the case of Indian National Ship Owners Associations and All India Federation of Tax Practitioners. RIL had sought to highlight that service tax is a destination based consumption tax. The Honble Supreme Court while dealing with the said issue had specifically used the word consumption with respect to the consumer and had observed that the tax so liable is to be paid by the consumer. The terms destination was used with reference to the place where such service was .....

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the SCN and are thus liable for tax as they have been provided in India. (iii) Under the existing laws there are three words which are used in the service tax statute viz., service provided, service received and services performed. The destination of the services can only be determined by (i) location of the service provider (ii) location of the recipient (consumer) of the services and (iii) place whether the service has been performed. It cannot be said that the service has been consumed by an .....

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ffshore oil exploration activity. It is mentioned in the Bill of Entry for FPSO: NO FOREIGN EXCHANGE REMITTANCE IS MADE AGAINST THESE SUPPLIES . These facts negate M/s. RIL s claim of import of FPSO. RIL had an option to purchase the FPSO anytime during the term of contract but it had not been purchased till February, 2010. Ledger produced by RIL shows that lease rent was paid upto February, 2010. Thus, RIL is liable to pay service tax as a recipient of service in India; Case of United Shippers .....

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second for renting, each of which is a distinct transaction. It was highlighted that Bill of Entry is a statutory document for bringing of any goods into India and the taxability under the service tax is to be examined and levied in terms of a contract. On the point raised by RIL that the transaction was not covered under service tax as it was bareback charter with actual transfer of possession and control , it was argued that this is an absolutely new issue which was not raised either at the t .....

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ing which falls under Rule 3 (ii) of Taxation of Services (Provided from Outside India and Received in India) Rules, 2006 (iii) Management Consultant service is covered under Rule 3(iii) of Taxation of Services (Provided from Outside India and Received in India) Rules, 2006. RIL, being a service receiver having fixed establishment in India, is liable to pay service tax. (iv) Manpower Recruitment or Supply Agency Service On examination of contracts entered by RIL with M/s. AGR Peak Consultancy S .....

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3(iii) of Taxation of Services (Provided from Outside India and Received in India) Rules, 2006. RIL, being a service receiver having fixed establishment in India, is liable to pay service tax on the services provided to installations, structures and vessels in respect of their oil and exploration activities carried out in offshore fields. As per Section 65 (104a) of the Finance Act, 1994, survey and exploration of mineral means geological, geophysical or other prospecting, surface or sub-surf .....

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or refining, processing and production. The service tax under this category would be limited to the services rendered in relation to survey and exploration only and not on the activity of actual extraction after the survey and exploration is complete. The transport, refining, processing or production of the extracted products would also be out of the ambit of service tax. Activities such as seismic survey, collection/ processing/interpretation of data and drilling or testing in relation to surve .....

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received from outside India by RIL were used for survey and exploration. As per the above said CBEC circular dated 17.09.2004, these activities are not covered under survey and exploration. (8) RIL has co-ordinated all their offshore activities from their onshore bases located at Kakinada, Paradip, Visakhapatnam and Pipavav. The agreements which RIL entered into with service providers from outside India who are not having a fixed establishment in India reveal that contractors (i.e., service pro .....

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vi Mumbai 400 701, India. Thus (i) M/s RIL is incorporated in India; (ii) Their fixed establishment is in India and all the correspondence has been made from these addresses; and (iii) An address cannot exist at an undefined place without any fixed building etc. Accordingly, the above referred terms of agreements / contracts satisfy the provisions of sub-sections (1) (a) and 1(b) of the Section 66A of the Finance Act, 1994, thereby rendering such services, as discussed supra, chargeable to ser .....

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vide NotificationNo.14/10 dated 24/2/2010 by which the provisions of the Finance Act were extended to the whole of the CS and EEZ for specified purposes. The Commissioner came to the conclusion that Notification 14/2010 could not be given retrospective effect. He relied on various decisions including CC Vs. Spice Telecom[2006(203) ELT 538] and Bombay Industries Pvt Ltd. Vs. UOI[1995(77) 32(SC)]. Therefore he dropped the entire demand of service tax except an amount of ₹ 33,94,064 being th .....

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the Continental Shelf of (CS) and Exclusive Economic Zone (EEZ) of India. (b) Commissioner held that Notification No. 1/2002 as amended does not apply to installations that are under construction. Whereas any service rendered during the construction and installation can be delivered only through a vessel. Further soon after construction activity starts, a structure comes into existence which is further built into an installation. Therefore all services related to oil exploration or prospecting o .....

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ty of the provisions of Chapter V of the Finance Act only to services provided in relation to prospecting or extraction or production of oil or natural gas. 10. The issue in the present case requires an answer to the following question:- Whether the services received by RIL and listed in the Table in para 6 above are taxable services provided in the taxable territory under the provisions of Notification No. 21/2009 dated 7/7/2009. 10.1. We find that the proceedings center around various notifica .....

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ection 6, and clause (a) of sub-section (7) of section 7, of the Territorial Waters, Continental Shelf, Exclusive Economic Zone and Other Maritime Zones Act, 1976 (80 of 1976), the Central Government hereby extends the provisions Chapter V of the Finance Act (32 of 1994) to the designated areas in the Continental Shelf and Exclusive Economic Zone of India as declared by the Notifications of the Government of India in the Ministry of External Affairs Nos. S. O. 429 (E) dated the 18th July 1986 an .....

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e (a) of sub-section (7) of section 7 of the Territorial Waters, Continental Shelf, Exclusive Economic Zone and Other Maritime Zones Act, 1976 (80 of 1976), the Central Government hereby makes the following amendments in the Government of India in the Ministry of Finance (Department of Revenue) Notification No. 1/2002-Service Tax, dated the 1st March, 2002, published in the Gazette of India Extraordinary, vide number G.S.R. 153(E), dated the 1st March 2002, namely :- In the said notification, fo .....

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Zone of India - Notification No. 1/2002-S.T., superseded. In exercise of the powers conferred by clause (a) of the section (6) of section 6 and clause (a) of sub-section (7) of section 7 of the Territorial Waters, Continental Shelf, Exclusive Economic Zone and Other Maritime Zones Act, 1976 (80 of 1976), and in supersession of the Government of India in the Ministry of Finance (Department of Revenue) notification No. 1/2002-Service Tax, dated the 1st March, 2002, published in the Gazette of Ind .....

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clusive Economic Zone of India Purpose (1) (2) (3) 1. Whole of continental shelf and exclusive economic zone of India Any service provided for all activities pertaining to construction of installations, structures and vessels for the purposes of prospecting or extraction or production of mineral oil and natural gas and supply thereof. 2. The installations, structures and vessels within the continental shelf and the exclusive economic zone of India, constructed for the purposes of prospecting or .....

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w proposed by Revenue. The review Order states that Not 21/2009 will apply to installations under construction because services rendered during the construction can be delivered only through a vessel. Under the Taxation of Services (Provided from Outside India and Received in India) Rules 2006, as they stood in the relevant period, India includes the installations, structures and vessels located in the Continental Shelf and Exclusive Economic Zone of India. This means that under the provisions .....

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rvice Tax. 2013-TIOL-1900-CESTAT-MU which held that pre-construction activity and during-construction activity is not included in the scope of the notification. We find that it was only on supersession of Notification1/2002-ST by Not 14/2010 that the concept of service tax on services for pre-construction activity was introduced. In the Not 14/2010, the scope of service tax was bifurcated into two parts: services for pre-construction and during-construction activities and services for existing i .....

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n. That is, where the associated words are susceptible of an analogous meaning, they are to be read in a cognate sense. It was held by the Tribunal in the case of Reliance Industries vs Commissioner of Central Excise & Service Tax LTU 2014-TIOL-940-CESTAT-MUM, that the word vessel in the phrase installations, structures and vessels must be taken to mean a stationary vessel when read with the words installations and structures. The Tribunal held that the vessels covered therein would be such .....

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ixed or stationary position . We may see the issue from another perspective too. We find that even in Not 14/2010, the phrase used is activities pertaining to construction of installations, structures and vesselsin the CS and EEZ. It would be incongrous to think of construction of vessels in the CS and EEZ for the obvious reason that vessels are not constructed in the ocean as such. Therefore the contention of Revenue that the Notification extends the ambit of taxable territory to vessels traver .....

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e service for construction of an installation is delivered through a vessel. We find this contention self-defeating. The construction of the notification is such that it aims to extend the taxable territory of India to installations, structures and vessels in the CS and EEZ. That is, the vessel itself becomes taxable territory. A vessel could even be traversing, during the oil exploration work beyond the 200 miles limit of the EEZ (taxable territory) and within this territory, back and forth. Wo .....

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he CS and EEZ only in respect of installations, structures and platforms. The validity was not extended to vessels. Therefore the meaning of the word vessels used in the Not 21/2009 does not appear to be intended to include vessels traversing across the CS and EEZ. Even in Not 14/2010 the taxable territory stands extended to installations, structures and vessels within the continental shelf and the exclusive economic zone of India, constructed for the purposes of prospecting or extraction or pro .....

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comes into being which becomes an installation. The SCN alleges (para 4.8) that These vessels, the equipments, the drilling pipes and related structures, leading to survey and exploration of oil & gas, putting up of manifolds and umbilical to extract the oil & gas form a structure or installation individually and severally on its own. The various services received for the erection of entire structure are the important part of the exploration activity carried, leading to complete formatio .....

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ion vs IOCL AIR 1991 SC 686. We have gone through this judgement. It decides an issue relating to rateable value of land and buildings under the Bombay Municipal Corporation Act. The question which arose in that case was whether storage tanks built on land would get covered under the definitions of land and buildings and be exigible to property tax. The definition of land under Section 3(r) of the said Act includes things attached to the earth The definition of building under Section 3(s) incl .....

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d and building and thereby exigible to property tax. When we compare the facts of that case with the facts in the present case, we find them incomparable. In the said case the finding was based on statutory definitions of building and land in the said Act which were interpreted by the Hon ble Court. In the present case no such statutory definition guides us as to what is a structure. Therefore, as enunciated by the Hon ble Court, in the present case we have to view the matter in the context of l .....

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grounds for review, which was argued vehemently by both sides, is the relevance of Not 14/2010 in the present dispute. The Commissioner held in his order that Revenue sought to give retrospective effect to the Notification 14/2010. The Ld. A.R. strongly contested this. He argued that the words Any service provided for all activities pertaining to construction of installations, structures and vessels for the. in notification 14/2010 dated 27.02.2010 are not sought to be applied retrospectively. .....

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ion of India was inserted in Section 65B of the Finance Act 1994 with effect from 1.07.2012 as under: (27) "India" means,- (a) the territory of the Union as referred to in clauses (2) and (3) of article 1 of the Constitution; (b) its territorial waters, continental shelf, exclusive economic zone or any other maritime zone as defined in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976; (c) the seabed and the subsoil underlying the ter .....

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forced the intention of the Government of India to levy service tax on the services received and utilized in the whole of continental shelf of India and Exclusive Economic Zone of India for all activities pertaining to construction of installations, structures and vessels for the purposes of prospecting or extraction or production of mineral oil and natural gas supply thereof. Therefore it cannot be said that service tax on the services used for the purposes of prospecting or extraction or produ .....

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ry of services for construction activities in the Not 14/2010. And in any case if the argument of Revenue is that the Not is not intended to be applied retrospectively, then its contention fails all the more. This is because then, the Not 21/2009 should be applied in the strictest manner and not in a manner to give it an intended meaning. Revenue s contention that Not 14/2010 was referred to in the SCN only to emphasize that the extent of taxability was limited merely for the oil exploration act .....

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These two categories of taxable territory are distinct. The statute included the activities pertaining to contruction only from 2012. It is established law that the primacy of the statute cannot be bypassed by reading some intention in a notification. Reliance is placed on the Apex Court decision in the case of Ispat Industries ltd. Vs. Commissioner [2006(202) ELT 561(SC)]. 24. If we read Rule 9(2) of the Rules independently without considering it along with Section 14 of the Act, then of cours .....

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have been promulgated. The actual price paid for the goods can only be taken into consideration provided the sale is in the ordinary course of trade under fully competitive conditions and the other provisions of Rule 4 are satisfied. 26. In our opinion if there are two possible interpretations of a rule, one which subserves the object of a provision in the parent statute and the other which does not, we have to adopt the former, because adopting the latter will make the rule ultra vires the Act .....

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on which helps us solve a difficulty. In certain situations Maxwells principles would be more appropriate, while in other situations the Mimansa principles may be more suitable. One of the Mimansa principles is the Gunapradhan Axiom, and since we are utilizing it in this judgment we may describe it in some detail. Guna means subordinate or accessory, while Pradhan means principal. The Gunapradhan Axiom states : If a word or sentence purporting to express a subordinate idea clashes with the pr .....

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, it must be given a meaning which is in accordance with the object of Section 14. The object of Section 14 is primary whereas the conditions in Rule 9(2) are the accessories . The accessory must, therefore, serve the primary . From the above it is clear that the definition of India in notification 21/2009-ST cannot be given a presumed meaning and therefore the services provided for pre-construction and during-construction activities will not fall within the ambit of the notification. What is .....

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(Provided from Outside India and Received in India) Rules, 2006 has been stated at length in the SCN and also discussed by the Ld AR. Therefore we proceed to the larger issue of territorial jurisdiction i.e. from the perspective of territorial jurisdiction of the Finance Act 1994. 11A. Both sides have argued vehemently in this regard. The ld. advocate submits that the provisions of chapter V of the Finance Act, 1994 were, for the first time, extended only with effect from 27.02.2010 to the whol .....

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ification 14/2010ST. And since there were no installations or structures in the CS and EEZ of India for which services were provided and the services were consumed by the block (sea-bed), by no stretch of imagination the levy could have been extended to services provided to and consumed by the seabed in the CS and EEZ of India during the relevant period in terms of notification 21/2009 -ST dated 7.7. 2009. 11B. On the other hand, the Ld Commissioner AR refers to Section 66(A) (1) and argues that .....

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ering such services chargeable to service tax as services received from outside India and treating the recipient, that is RIL, as provider of the service. He further argues that the Service tax statute considers (1) service provided, (2) service received and (3) services performed as the critical elements to determine whether service is provided in India. The destination of the services can only be determined by (i) location of the service provider (ii) location of the recipient (consumer) of th .....

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tion of service tax law is laid down in Section 64 which states that chapter V of the Finance Act 1994 extends to the whole of India except the State of Jammu and Kashmir. By virtue of notification 21/2009, the provisions of chapter V were extended to the installations, structures and vessels in the CS and EEZ of India. It is in the background of this statutory matrix that we have to address the issue. We refer to some judicial pronouncements on territorial jurisdiction. The Supreme Court in the .....

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he tax is leviable on services provided within the country. A judgement directly relatable to the facts of the present case is Cox and Kings India Ltd versus Commissioner of Service tax, New Delhi 2014 (35) STR 817 (TRI-Del). We refer to the relevant paragraphs (g) Board Circular 36/4/2001 dated 8-10-2001 also clarifies the issue that since (at present) levy of Service Tax Extends to the Whole of India except the State of Jammu and Kashmir; and India includes the territorial waters of India wh .....

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ritorial waters will not attract service tax. (i) Qua the text and context of provisions of the Act, it is clear that service tax is a destination based consumption levy. The taxable event, in all events, qua the provisions of the Act, in particular provisions of section 65, is on provisions of a taxable service. Thus, where a service is provided and consumed outside the territorial locus of the Act, the consideration received thereof would not be subject to levy of service tax, under the substa .....

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ices or components thereof fall within the ambit of the Act and the services that fall outside such ambit. As services provided for outbound tours are provided and consumed outside the Indian territory; are beyond the province and purview of the provisions of the Act, the consideration received which corresponds and is relatable to services provided outside the Indian territory required to be excised by applying the doctrine of apportionment. On such vivisection, the consideration attributable t .....

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ity, in our considered view, is applying the provisions of the act (which authorizes the levy and collection of service tax as a destination and consumption based tax and in respect of a service defined and enumerated in the Act to be a taxable service), to a service provided and consumed beyond Indian territory, within which alone the legislation operates and authorises the levy and collection of tax. As pointed out in Ahmedbhai Umarbhai &Co, the very territorial limits to the operational e .....

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even if falling within the scope of the amended definition of tour operater ; (provided by the assessee and consumed by the tourist customers beyond Indian territory), is not liable to levy collection of service tax, under provisions of the act. We hold that provisions of the Act do not have an extraterritorial operation…… The above judgements elucidate the law that service tax is not a charge on business but on the consumer on the provision of a taxable service in the taxable ter .....

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il. Had this been the intention or the definite implication, there would have been no need to introduce this phraseology specifically in the notification 14/2010 dated 27.02.2010. The list of activities enumerated in the table in Para 6 above have to be seen in relation to the various contracts entered into by RIL with the service providers. The details of the contracts clearly show that many of the activities related to the construction of installations or mere exploration. The fact that ultima .....

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isting installations as falling in the territory of India. The review directions/grounds of appeal further confuse the issue. On the one hand, the services provided to/ by installations structures etc are sought to be taxed. On the other hand, the services enumerated in the table in para 6 pertain to activities in respect of installations which are not installed as yet. For example the supply of FPSO under the STGU service which constitutes the major chunk of the demand, is sought to be taxed fo .....

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service has to be provided to a service receiver who is a person. But first the jurisdiction of Service Tax law has to be seen. Essentially, the jurisdiction of service tax law under Section 64 is such that only service provided in the taxable territory is the service that can be taxed. Only the installations and structures as notified under the Notification fall in the ambit of the definition of India which is the taxable territory. If the services are provided anywhere in the seabed of the CS .....

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Rules, 2006 Rules. The jurisdiction is laid in the Finance Act, 1994. The Rules will come into play only when the jurisdiction is there. A good analogy given by the ld advocate as a rebuttal to Ld ARs argument is that if the office of RIL is located in India and service contracts are executed with RIL in India for execution of services provided abroad, they cannot be taxed being the services provided outside the taxable territory of India. This example shows that if the reasoning of the ld AR .....

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r corners of the statute. Therefore, in the present case, the confirmation of demand beyond taxable territory is clearly ultra-vires. 11D. Apart from merits in favour of the respondent, we also find that the issue in the present case stands decided by the High Court of Mumbai in case of Greatship India Ltd. vs. Commissioner of Service tax [2015(39) STR 754(Bom)]. The relevant paras of the judgment are reproduced below: 35. In the present case, we find that the plain reading of the 2009 Notificat .....

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nomic Zone of India were not brought under the purview of Service Tax net. Only by the Notification of 2002, the said provisions were made applicable to the areas in the Continental Shelf and Exclusive Economic Zone of India, only insofar as the areas which were covered under the 1986 and 1996 notifications. By amendment to 2002 Notification by the 2009 Notification, the services rendered to installations, structures and vessels were brought in the Service Tax net irrespective of the fact that a .....

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at, it is presumed that each and every word used by the legislature is with some intention. It is equally settled that each and every word used by the legislature is to be required to be given meaning and not ignored. It is to be noted that in the 2010 notification no such words like it is clarified for removal of doubts or it is declared are used. However, even in the absence of such words, a statute could be construed to be declaratory or clarificatory, if upon interpretation of the same s .....

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rom the following words : except as things done or omitted to be done before such supersession. It would thus be seen that what has been saved by the notification upon supersession is only in respect of things done or omitted to be done before supersession, i.e., before 27-2-2010. The words used are Central Government hereby extends . It is thus clear upon plain reading of 2010 Notification, that the legislative intent of 2010 Notification is (i) that it supersedes the 2002 Notification, it cons .....

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at in 2002 Notification, as amended in 2009, this Court should construe that the legislature not only intended to make the provisions applicable to the installations, structures and vessels in the Continental Shelf and Exclusive Economic Zone of India but also by the installations, structures and vessels. We find that if the contention as raised by the Revenue is to be accepted, then between the word to and the installations, structures and vessels in the Continental Shelf and Exclusive Economic .....

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tion widens the tax scope and amongst various other services also brings into the Service Tax net the services rendered to or by the installations, structures and vessels. It can thus be seen that the present transaction, which is in the nature of providing services by the vessels of the appellant for the purpose of prospecting mineral oil and as such is a service consumed by the seabed of Continental Shelf of India would come in the tax net only after 2010 Notification came into effect. We are .....

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Hon ble High Court decided that the services provided to the sea-bed do not fall in the ambit of Not 21/2009. We have held in above paras that the services provided by the installations have to be viewed from the perspective of taxable territory and any service provided outside the taxable territory cannot be taxed. The Ld AR prayed that in view of the Mumbai High Court decision in the case of Commissioner vs Jolly Board 2015(323)ELT 80(Bom), reliance cannot be placed on the Greatship judgement .....

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the requirements of judicial discipline and the need for giving effect to the Orders of the higher appellate authorities. In the present case we respectfully follow the Orders of the Hon ble High Court in Greatship India. 12. We have have come to a conclusion that service tax is not payable in the present case as the services provided in the CS and EEZ are services provided outside the taxable territory. We could have well concluded our findings on this basis alone because, as rightly pointed b .....

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ion activities, not services to existing installations etc. 12A. We find from the table that the main service considered is Supply of Tangible Goods for Use (STGU) service of which the most important in terms of quantum of duty is the supply of FPSO. The respondent have relied on the principal bench decision in the case Petronet LNG Ltd Vs. Commissioner of service tax [2013 TIOL-1700 CESTAT-Del] to say that in the present case there is transfer of effective control of the FPSO which involves dee .....

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t 32. The Supreme Court in British India Steam Navigation Co. Ltd. referred to a passage in Halsbury's Laws of England 4th edn. Vol. 43, para 401 to explain the distinction between "Voyage charterparty" and "time charterparty". Suffice it to observe that Halsbury at para 403 notices that charterparty by way of demise are of two types; (i) charter without master or crew, where the hull is the subject matter of the charterparty and (ii) charter with master and crew, under w .....

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ker is on the specifications of the assessee; the tanker is delivered to the assessee; remains in its possession during the tenure of the charter; personnel and crew are strictly governed and bound by directions and instructions issued by the assessee covering every relevant aspect of their functional responsibilities; and their services are terminable, by the owner on directions of the assessee in case of misconduct, there is, on a holistic consideration of the terms of the agreement, a demise .....

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find that Board Circular F. No. 334/1/2008-TRU dated 29/2/2008, while explaining the introduction of STGU service stated that: 4.4 Supply of tangible goods for use: 4.4.1. Transfer of the right to use any goods is leviable to sales tax/VAT as deemed sale of goods[Article 366(19A)(d) of the Constitution of India]. Transfer of right to use involves transfer of both possession and control of the goods to the use of the goods. 4.4.2 Excavators, wheel loaders, dump trucks, crawler carriers, compactio .....

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le goods, including machinery, equipment and appliances, for use, with no legal right of possession or effective control. Supply of tangible goods for use and leviable to VAT/Sales tax as deemed sale of goods, is not covered under the scope of the proposed service. Whether a transaction involves transfer of possession and control is a question of facts and is to be decided based on the terms of the contract and other material facts. This could be ascertainable from the fact whether or not VAT is .....

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n facility that houses both processing equipment and storage for produced hydro carbons. The basic design of most FPSOs encompasses a ship shaped vessel, with processing equipment aboard the vessel deck and hydro carbon storage below in the double hull. After processing, an FPSO stores oil or gas before offloading periodically to shuttle tankers or transmitting processed petroleum via pipe lines . The salient features of the contract are as below: 2.1The duration of the Contract shall be from th .....

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ecified in Exhibit C and the Contractors entitlement to be paid such rates shall be as specified in Exhibit C. All payments shall be made in United States dollars(USD) only and further Contractor shall not be eligible for any compensation for any exchange rate fluctuation for whatsoever reason. 3.4 The compensation payable to Contractor pursuant to Exhibit C covers and includes all the costs and expenses incurred by Contractor to provide or perform all of its obligations under the Contract (inc .....

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INVOICING AND PAYMENT 4.2 Contractor shall raise separate invoices for the following items: (a) Lease Rental; (b) Insurance premiums in respect of which the Contractor is entitle to be reimbursed by RIL pursuant to Clause 6.1; (c) mobilization fee (d) demobilization fee; and (e) other activities and transactions for which invoices may be raised pursuant to the contract. 5. INSURANCE 6. Contractor shall procure and maintain in full force and effect with respect to and for the duration of the Con .....

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ing of a ship for a stipulated period on terms which give the charterer possession and control of the ship, including the right to appoint the mate and crew; (b) bareboat charter cum-demise means a bareboat charter where the ownership of the ship is intended to be transferred after a specified period to the company to whom it has been chartered. Further an order has been issued on 08.03.2011 under section 197(1) of the Income Tax Act, 1961 which shows that under income tax provisions there is tr .....

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er Contracting FP AS for Chartering of Floating, Production, Storage and Offloading Facility in connection with extraction and production of Oil and Gas (viz. contract No. OGF/3627982 dated May, 9 2007). The contract entered with RIL is for providing Floating, Production, Storage and Offloading (FPSO) facility, along with STP buoy and mooring, meeting the FPSO classification and including all equipment, material, spare parts and supplies to be supplied on such FPSO in relation to development and .....

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facility (on bare boat basis) along with STP buoy and mooring which meets the FPSO classification and including all equipment, materials, spare parts and supplies to be supplied on such FPSO to RIL for use in relation to extraction and production of oil and gas at the assigned field. From the above we come to a conclusion that service is not rendered in the supply of FPSO because it is being considered as an asset. But the Ld AR protested that the evidences narrated above were never taken up be .....

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r STGU service includes various other contracts under which services are provided by various suppliers. These contracts are for vessel for offshore exploration, supply of winch, subletting of vessel for supporting a Rig operation, contract for running tools for expandable tubulars, chartering of PSV (Platform Support Vessel), contract for mud logging services, contract for wellbore services, hiring of Remote Operated Vehicles(ROVs), contract for chartering AHTS vessel Pacific Silver , contract f .....

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developing the installations and structures for oil exploration and production and not to the installations. We have already held that the scope of such services are outside the ambit of notification 21/2009 as they are not for providing service to existing installations, i.e. in taxable territory. The contract with Emas Offshore Pvt. Ltd. is for assignment of vessel Harrier to Reliance Exploration and Production for supporting the rig Blackford Dolphin for operation in offshore Oman. As the ope .....

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1/2009 has to be akin to a structure such as an installation and does not refer to vessels freely traversing in the waters. We have also held that service in the CS and EEZ generally is service provided outside taxable territory. The contract with International Tubulars concerns mobilization of equipment at RILs Kakinada shore base to execute KG-D6-B2 lower completion job in Blocks under exploration. This contract is for providing service for exploration activity and it has nowhere been establi .....

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ervice relates to development of wells and not to existing installations, structures etc. and therefore service is not provided in taxable territory. The contract with Vetco Gray Pvt. Ltd. relates to, interalia, supervision of installation of well heads systems at offshore and includes pre-installation testing. It is evident that the contract refers to a pre-installation activity and is therefore not covered under the scope of notification 21/2009. The contract with Deepwater Pacific (1) Inc sta .....

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ory. There are contracts of remote operated vehicles (ROVs). In the scope of work for various ROVs the following is mentioned NEPTUNE EXPLORER Contract should provide; Type II ROV(Hydra Magnum-100 HP) package which shall be mobilized for rig Nepture Explorer and shall be replaced by Type I ROV (Hydra Magnum Plus-150HP) package along with MINIMUM ROV System DEEP DRILLER 1 Contract should provide; Type IV Spectrum or Equivalent -20HP) package which shall be mobilized for rig Deep Driller 1 As a .....

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Counsel insists that ROVs are floating vessels and department has not shown anywhere as to how they are attached to the rigs nor has any such averment been made in the show cause notice. We find the contention true that no such averment has been made in the show cause notice. Even otherwise as seen from the contract, the ROV is to be mobilized on, in the case of say rig Actinia, after completion of work under ongoing contract. The ongoing contract relates to installations and stuctures which are .....

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tax authorities had assessed and appropriated service tax under the head of mining services, when being rendered within 12 nautical miles of the territory of India. It is only in respect of services rendered beyond 12 nautical miles, that tax is being demanded under the head of STGU. Revenue cannot take a contrary stand now. For all the above reasons we are of the view that the question of providing service to installations does not arise. We conclude that above services are provided in locatio .....

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shown the contract with GX Technology EAME Limited for 3D Seismic Data special processing KGD4. The contract provides that input data will be transported to the contractors processing center in London. The Seismic Processing will be conducted at the contractors processing facility with equipment and personnel for the project as provided. The contract also provides that RIL will obtain necessary government clearance for sending data outside India. Revenue has not been able to show that the proc .....

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ng or installation service as defined under Section 65(39a). The contracts with M/s. Aker Installation FP reveal the scope of work to include (i) installation of the complete facilities and the related engineering (ii) application of and completion of the works in accordance with appropriate detail installation engineering etc. As per the SCN the service is provided on block in the CS and EEZ. The services are related to construction of installations in the CS and cannot be said to have been pr .....

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s Ltd, Allomax Associates Ltd, Richard Brent Kopulos and others. From the contracts shown in the SCN, we find that these services relate to provision of manpower to monitor rig site operations such as drilling personnel, subsea engineers, completion engineer, well completion supervisor etc. These activities relate to development stage (Stage shown at 3.4 in para 2 of our Order as extracted from the SCN) for development and exploitation and when production facilities are being established. It has .....

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d. Under this contract, we find the scope of work as follows: (a) Provide installation guidelines; review and approve installation procedures of any installation contractor appointed by Company; (b) Carrying out SATs as required herein; (c) Supervision during installation, pre-commissioning and Commissioning goods; (d) Supervision of installation, hook up and testing of Goods which are free issued to agents, contractors and sub-contractors(of any tier) of Company at the direction of Company; (e) .....

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es relate to pre-construction and during-construction activity to be performed at the time of erection of structures and installations in the ocean. Here again, we do not appreciate how the service tax becomes payable when the service is not provided in the taxable territory. Even for sake of repetition we may remind that the first condition of taxability is that it must be provided in taxable territory. The notification speaks of services to installations and structures already in existence and .....

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nstallation of various components of projects as defined above with the overall objective of obtaining the specified medium level certification. Another contract is with Moduspec International (L) Limited. The scope of the work is as follows: Contract for inspection of drilling rigs (floater) and inspection of offshore supply vessels/anchor handling TOE vessels. Scope of work include analysis of equipment condition and standards of maintenance, in accordance with API standards; the equipment man .....

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cks for all critical equipment on board the drilling unit, as applicable, will be conducted. A check that the proper safety devices are installed and are working correctly to prevent accidents and equipment failures. During inspection of the rig, the assistance of the crew shall be provided to open and prepare equipment for inspection, run the equipment for testing and to assist with pressure and load testing for various items . Our observations in the case of contract with Aver Kvaerner would a .....

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st-operation and management, Trouble shooting and technical services, including establishing systems and procedures for an existing plant. The SCN states that it appears M/s. Stephan Alam Graham (Copies of pages relating to scope of work not furnished), M/s. ECL Pty. Ltd (copy of agreement not produced), and Professor Octavian Catuneanu (copy of agreement not produced), have provided service to RIL for social consultancy project KG-D6. Classification of service has been determined under consulti .....

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with Eugro Geos Pte Ltd, Fusion Petroleum Technologies Inc and G. Shanmugam. We find that the contracts involve weather forecasting service for each block, geo pressure studies. As per SCN contract is to generate 3D geopressure cube and subsequently leading to prediction on identified prospects integrating previously drilled well data, existing PSDM /PSTM velocities from RIL's processing efforts and other geoscientific studies and risk quantification of drilling in toe thrust / gas chimney .....

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12(B)(v) Service tax has been demanded under the technical testing and analysis service defined under Section 65(106) (zzh) of the Finance Act. As per SCN contracts have been executed with Caleb Brett Usa Inc- Contract for PVT analysis and well fluid sampling and analysis for exploration wells to be drilled to establish hydrocarbon reserves in the wells.The contractor shall establish parameters and properties of produced formation fluid, PVT samples shall be collected using MDT/RCI, and DST sam .....

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parameters, petrophysical parameters and geological descriptions. The results will help in field development planning, reserve estimation and reservoir simulation. In phase I, Core preparation and fresh state parameter measurements are done. In phase II, conventional core analysis is performed to gather the basic reservoir rock parameters. The tests should start within a week of arrival of core samples in contractors laboratory. Sherry Laboratories- Contract for toxicity test of drilling mud fro .....

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India. The service being performed outside India, the question of levy of service tax does not arise. 12(C)(i) One of the services is the Commercial Training and Coaching Service provided by Donald R Lowe and Alan Graham on Deepwater Systems . We find the training was conducted by these persons at RIL premises at Mumbai which activity is taxable under Section 65(105)(zzc) read with Section 65(27). 12(C)(ii) Another service is Management consultant service under Section 65(105)(r) read with Se .....

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at focused on HSE Management Systems. The other contracts relate to provision of legal advise in relation to oil and gas exploration. The services provided under the contracts relate to different areas of Management and are provided at Mumbai. They are squarely covered in the ambit of management consultant service and taxable. 13. We note that RIL had declared in the ST returns that the services are performed or received at locations to which the provisions of the Finance Act do not apply. There .....

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