TMI Blog2019 (11) TMI 715X X X X Extracts X X X X X X X X Extracts X X X X ..... exemption from import duty to such imported stores. The Applicant does not claim that its supplies of stores to the foreign going vessels are restricted to warehoused goods. In any case, at the time of supply, both the supplier (the Applicant) and the recipient (the foreign going vessel) are located in India. The supply of stores imported or otherwise, to foreign going vessels cannot, therefore, be construed as export unless it is marked specifically for a location outside India. It is not a zero-rated supply. The Applicant is, therefore, liable to pay tax on such supplies under the GST Act or the IGST Act, as the case may be - However, the Applicant s supplies to the foreign going vessels shall be treated neither as a supply of good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cussion is necessary in the context of the ruling. The order, to that extent, needs to be rectified. This Authority, therefore, proceeds to amend the said order on its own accord under section 102 of the GST Act. As the rectification is not going to enhance the tax liability or reducing the amount of admissible input tax credit from the original order, the requirement under proviso to section 102 of the GST Act does not apply. The amended order as it stands after rectification is provided below. The amended portion is included under the third bracket. 1. Admissibility of the Application 1.1 The Applicant supplies foreign going vessels stores like paint, rope, spare parts, electronic equipment etc. It seeks a ruling on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt submits that the above provisions of the IGST Act and the 1962 Act if read together, confirm that supply of stores in a foreign going vessel is export and a zero-rated supply in terms of section 16 of the IGST Act. 2.3 The Applicant also refers to the ruling of AAR, Andhra Pradesh in Fairmacs Shipstores Pvt Ltd {Order No. AAR/AP/10(GST)/2018 dated 20/08/2018} = 2018 (11) TMI 486 - AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH . 2.4 The concerned officer from the Revenue agrees with the Applicant s view. 3. Observations findings of the Authority 3.1 Warehoused goods, as defined under section 2(44) of the 1962 Act, refer to the goods imported and allowed to be deposited in a licensed warehouse. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the IGST Act (and the 1962 Act as well), therefore, has a much narrower meaning. A foreign going vessel anchored within the territory of India is not a place outside India and taking the stores on board such a vessel does not amount to supply to a location outside India. Section 69 of the 1962 Act cannot, therefore, cover within the ambit of export the case where the warehoused goods are taken on board a foreign going vessel. A special provision needs to be made under section 88(a) of the 1962 Act to extend the facility of exemption from import duty to such imported stores. 3.4 Moreover, section 69 or 88(a) of the 1962 Act has little relevance unless the stores being supplied are warehoused goods. The Applicant does not claim th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re not similar or that specific. Foreign going vessels obtain stores and spare parts while staying anchored at a port in India. There is no reason why the part of such stores that [the recipient sources from inland and consumes or uses for repairing or servicing of the vessel while in India should be treated as export]. In view of the foregoing, we rule as under. RULING The Applicant s supply of stores to foreign going vessels, as defined under section 2(21) of the Customs Act, 1962 Act, is not export or zero-rated supply, unless it is marked specifically for a location outside India. The Applicant is, therefore, liable to pay tax on such supplies under the GST Act or the IGST Act, as the case may be. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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