In Re Arya Tankers Private Ltd (CAAR Mumbai)
In the matter of Arya Tankers Private Ltd, the Customs Authority for Advance Rulings (CAAR) Mumbai addressed the tax implications for the vessel Kashi when it enters Indian waters for loading or unloading cargo. The ruling clarified that the vessel Kashi must file Bills of Entry and pay applicable Customs duties upon entering Indian waters. Furthermore, it was determined that the vessel is covered under entry no. 551, but not entry no. 557B, of Notification 50/2017-Customs dated 30 June 2017, necessitating the payment of Customs duties and IGST accordingly. Additionally, the applicable IGST rate for the import of Vessel Kashi is set at 5% as per Sr. No. 246 of Schedule-I of Notification No. 1/2017-Integrated Tax (Rate) dated 28 June 2017. The vessel’s entry into Indian waters for cargo operations qualifies as ‘supply’ under section 3(7) of the Customs Tariff Act, 1975, thereby subjecting it to IGST.
1) Whether Vessel Kashi when enters into Indian waters for loading/unloading of cargo shall be liable to file Bill of Entry and pay Customs Duty?
Vessel-Kashi when enters into Indian waters for loading/ unloading of cargo, the applicant is liable to file Bills of Entry and pay applicable Customs duties.
