Circular No 67/16/2003-ST
Nov 10, 2003
F.No . 160/3/2002-CX-4
Government of India
Ministry of Finance
Department of Revenue
I am directed to say that a doubt has been raised regarding levy of Service Tax on ship repair during the dry docking by the person duly authorised in this behalf by port authorities. This involves removal of damaged parts and replacement by new parts. This may involve repairing the outside bottom area of a Ship/Vessel by supplying huge quantities of MS plates etc.
The matter has been examined, Port services means any service rendered by port or any person authorised by them, in any manner, in relation to a vessel or goods, Thus, all such services rendered, including during dry dock and repairs to the ship, are taxable which should include not only the minor repairs provided by ship chandlers but also the dry dock facilities and any repairs carried out to the vessels. However, the benefit of notification no. 12/2003-ST dated 20.6.2003 would be available.
2. A clarification issued by the Board in this matter vide letter of even number dated 1.7.2003 is also enclosed for information.
Under Secretary to the Govt. of India