Supply of goods to offshore installations i.e. EEZ will not be subject to sales tax, especially Central Sales Tax, since EEZ does not form part of territory of India

Larsen & Toubro Ltd Vs Union of India (Gujarat High Court)- The High Court examined in detail the provisions of the Maritime Zones of India Act, 1976 (MZA) and observed that Union of India had no sovereignty over the EEZ. The Union of India only had certain sovereign rights over the EEZ. The High Court further observed that MZA empowers the Central Government to issue specific notifications to extend the ambit of certain laws to any part of the EEZ and to make such provisions as are necessary for the enforcement of such laws in the EEZ.

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