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Ativity of import and subsequent supply of drill bits by the Applicant to ONGC does not qualify as one single supply.

Classification of supply— In the instant case, applicant is a global service provider, engaged in providing various oilfield services to Exploration and Production companies across the globe. Presently, the Applicant has contracted to provide drill bits for drilling to ONGC at 12 different locations.

we find that the basic issue before us is whether the import of drill bits for supply to ONGC at its location in India on consumption basis involves two supplies namely, Import into India of drill bits; and Indigenous movement from the port of import to ONGC’s location; and If two supplies are involved in the abovementioned transaction then whether two Essentiality Certificates (‘EC’) are required to be issued for availing benefits with respect to concessional duties of IGST and CGST.

Held that— the import of drill bits for supply to ONGC at its location in India on consumption basis involves two supplies namely,-

- Import into India of drill bits; and

- Indigenous movement from the port of import to ONGC’s location.

In terms of serial no. 404 of Notification No. 50/2017-Customs dated 30 June 2017 (‘Customs Notification’), a concessional rate of Customs duty (BCD - NIL and IGST - 5%) is prescribed for specified goods mentioned in List 33, required in connection with petroleum operations undertaken under petroleum exploration license or mining leases granted by the Government to ONGC and the benefit of concessional rate of Customs duty (i.e. BCD - NIL, IGST - 5%) is available subject to fulfilment of conditions listed in Si. No. 48 of the Customs Notification including the producing to the jurisdictional Deputy commissioner of Customs or Assistant commissioner of Customs, a certificate from a duly authorized officer of the Directorate General of Hydro Carbons in the Ministry of Petroleum and Natural Gas, Government of India to the effect as specified therein the Notification”.

The entitlement or eligibility or applicability of exemption from central tax under Notification No.03/2017-CT (Rate) dated 28.06.2017 to the supply of goods (drill bits) to the delivery stations of ONGC is only upon fulfilment of conditions specified in the said Notification—Halliburton Offshore Services Inc. (Drill Bits), In Re… [2020] 21 TAXLOK.COM 132 (AAR-AP)

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