Hapag-Lloyod Container Line GMBH Vs. ADIT (ITAT Mumbai)
Appeal No. ITA No. 8854/MUM/2010
Date of Judgment – 7 March 2012
Slot arrangement cannot be termed as pooling arrangement and in absence of owning, chartering or pooling of mother vessel, relief under the India-Germany tax treaty cannot be availed by a non resident.
ITAT held that profits from participation of cargo under ‘Slot Arrangement’ are not eligible for benefit of Article 8 of the India-Germany tax treaty (the tax treaty) in case the mother vessels are not owned, hired or chartered by the taxpayer.
Tribunal in the present case has reiterated the position that the benefit of the tax treaty would be available to the transportation of cargo by feeder vessels only if the taxpayer is able to establish a link between the transportation of cargo by feeder vessel with transportation of mother vessels, owned, leased or chartered by it. The Tribunal has declined the benefit in the present case in absence of satisfaction of owing, chartering and existence of pooling arrangement for the mother vessel.
