The Gujarat Authority of Advance ruling (AAR) that the service of transportation of goods from Magdalla Port, Surat to its General Lighterage Area of Magdalla Port is not covered under exemption contained at Sr. No. 18 of Notification No. 12/2017-Central Tax (Rate). the service of transportation does not fall in the definition of ‘Inland waterways’.
The applicant, M/s. Shreeji Shipping is in the business of providing services in relation to transportation of goods from Magdalla Port to the General Lighterage Area (Anchoring Point of Mother Vessel) or vice versa.
The applicant submitted that transportation of goods is being done from anchorage point to the Magdalla Port, Surat in a channel or belt fixed for the same on the River Tapi, and is done in the territorial waters. The transportation is being done on the River Tapi.
The applicant sought the advance ruling on the issue whether the service of transportation of goods from Magdalla Port, Surat to its General Lighterage Area of Magdalla Port (from where the Mother Vessel are anchored) or vice versa, is covered under exemption contained at Sr. No. 18 of Notification No. 12/2017- Central Tax (Rate) and whether the service of above transportation falls in the definition of ‘Inland waterways’.
The Authority consisting of Sanjay Saxena and Mohit Agarwal ruled that the service of transportation of goods from Magdalla Port, Surat to its General Lighterage Area of Magdalla Port is not covered under exemption contained at Sr. No. 18 of Notification No. 12/2017-Central Tax (Rate). the service of transportation does not fall in the definition of ‘Inland waterways’.
“The applicant is providing service relating to the transportation of goods in the waterway, i.e. from Magdalla Port to its General Lighterage Area (Anchoring Point of Mother Vessel) or vice versa. This waterway is a part of the Arabian Sea. Whereas, the term “Other waterway on any inland water” covers any canal, river, lake, or other navigable water within a State only. The waterway, between which the service of transport is performed by the applicant, is the part of the “Arabian Sea” and not a part of any canal, river, lake, or other navigable water within a State. Thus, their contention, that the transportation is being done on the River Tapi, appears to be incorrect,” the Authority noted.
The authority concluded that the service of transportation of goods in barrages from mother vessel to daughter’s vessel from Magdalla Port, Surat to its General Lighterage Area of Magdalla Port is neither covered in the definition of ‘national waterways’, as defined in Clause (h) of section 2 of the Inland Waterways Authority of India Act, 1985 nor covered in the definition of ‘other waterway on any inland water’, as defined under Clause (b) of Section 2 of the Inland Vessel Act, 1917.
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