Helix Energy Solutions Group Inc. Vs Commercial Tax Officer Kakainada Another (Andhra Pradesh High Court)
Andhra Pradesh held that neither the State Legislature nor the Central Legislature would have power, to levy tax on the sale of goods made beyond the territorial waters of India. Accordingly, writ petition disposed of setting aside the assessment orders and remanded the matter back.
Facts- The petitioner is a company incorporated in the United States of America. It had entered into a sub-sea constructions and diving contract, dated 21.12.2006 with M/s. Allseas Marine Contractors S.A, for on off shore Gas field, developed by M/s. Reliance Industries Limited, in the Krishna Godavari Basin situated in the Bay of Bengal. Under the contract the material, was to be supplied by M/s. Allseas Marine Contractors and the petitioner was required to carry out engineering, planning and fabrication activities in relation to the installation of the sub-sea constructions. It is also the contention of the petitioner that about 80% of this work was done beyond 12 Nautical miles from the coast of Andhra Pradesh.
The petitioner had registered itself under the provisions of the Service Tax Act. Apart from this, the petitioner also obtained registration, as a dealer, under the provisions of the Andhra Pradesh Value Added Tax Act, 2005 and the Central Sales Tax Act, 1956. The petitioner, on the ground that less than 1% of the value of the contract involved transfer of goods, had approached the 1st respondent for quantification of taxable turnover for the purposes of deduction of tax at source. The 1st respondent is said to have issued a certificate, in Form 501D, dated 10.04.2008, determining the taxable turnover at 3.5% of the total value of the contract on which tax would be liable to be deducted at 4%.
