In re Global Vectra Helicorp Limited (GST AAAR Gujarat)
In terms of the valuation provisions under GST legislation, amount recovered as reimbursement by the appellant M/s. Global Vectra Helicorp Ltd. from the customer, for the fuel procured for use in the helicopter provided on rent to customer is required to be included in the value of services provided by the Appellant
FULL TEXT OF ORDER OF APPELLATE AUTHORITY OF ADVANCE RULING, GUJARAT
The appellant, M/s.Global Vectra Helicorp Limited (GVHL), employs a fleet of around 30 helicopters (aircrafts) for providing services classifiable under Service Accounting Code 996603 (i.e. Rental services of aircraft including passenger aircrafts, freight aircrafts and the like with or without operator) in terms of Annexure to Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017. The appellant has submitted that they are responsible for providing rental services of aircraft (with or without operator) and in respect of Aviation Turbine fuel (ATF), it was agreed that provision of the same for the purpose of flying of aircrafts would be the responsibility of the customers; that at locations where the customers are unable to provide the fuel, in order to ensure continuity of flying, the contract requires GVHL to procure the fuel on behalf of the customers and subsequently the cost of the fuel is reimbursed by customers at actual (without charging any mark-up); that GVHL undertakes the activity of procurement of fuel as a ‘pure agent’ on behalf of the customers.
2. The appellant has filed their submission along with the appeal filed on 21.08.2020 against Advance Ruling Order No. GUJ/GAAR/R/21/2020 dated 02.07.2020 passed by the Gujarat Advance Ruling Authority (herein after referred to as the ‘GAAR’). In their submissions, the appellant has mentioned that the relevant clauses of Contract No. ONG/COL/HMM/CSR/AL/CH/HELICOPTER/CREWCHANGE/09/2014/P76BC4008-GR-1 dated 31.07.2015 with M/s. Oil and Natural Gas Corporation Ltd.(ONGC) are as under:
