Case nº Ruling Nos. AAR/ST/02-03-2015, in Application Nos. AAR/44/ST/03 & 05/2013 of AAR Cases, July 03, 2015 (case Gspl India Transco Ltd. Vs)
| Judge | For Appellant: Shri Sujit Ghosh, Advocate. and For Respondent: Shri Amresh Jain, (AR). |
| President | V.S. Sirpurkar, Chairman and S.S. Rana, Member |
| Resolution Date | July 03, 2015 |
| Issuing Organization | AAR Cases |
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[Ruling]. -- 1. M/s. GSPL India Transco Limited (F. No. AAR/44/ST/ 03/13) and M/s. GSPL India Gasnet Limited (F. No. AAR/44/ST/05/13) (hereinafter referred to as applicant) are a subsidiary of Gujarat State Petronet Limited (GSPL), which is a Government company under the Companies Act, 1956. As the facts and question, on which Advance Ruling sought, is same in respect of above referred applicants, both applications are taken up for common ruling. 2. Both these cases had a checkered journey so far. Applicants filed applications before this Authority on 13-12-2011. However, the applications were rejected vide order dated 30-3-2012 as not maintainable. Thereafter, the applicants filed writ petition against aforesaid order of this Authority before the Hon''ble Gujarat High Court, who vide order dated 29-8-2012 allowed the writ petition and instructed this Authority to hear the applicant on merits. In the interim, Service Tax laws in 3. The applicant proposes to avail the benefit of Cenvat credit in respect of Service Tax that would be charged by its contractors for installation and commissioning related services on the input side for bringing into existence a pipeline and utilizing the same for discharging its output Service Tax liability. 4. According to the applicant, the activity of laying of pipeline begins with identification of route of the pipeline from the source to destination. The identification of the route involves a feasibility analysis to ensure that an acceptable route for the pipeline exists that provides the least impact to the environment and public infrastructure already in place. Once the route for the pipeline is identified, the next step is to acquire Right of Use and Right of Way on the said route. In this regard, the applicant would obtain the Right of Use (ROU) in respect of the land along the identified route either under the Gujarat Water & Gas Pipelines (Acquisition of Right of User in Land) Act, 2000 or the Petroleum and Minerals Pipeline (Acquisition of Right of User Inland) Act, 1962. The first one is 5. For the purpose of laying pipeline, the applicant would be required to procure steel pipes and valves and further would have to get the pipes and valves installed and commissioned along the identified routes so as to connect the source to the destination. In this regard, the applicant would either grant various turnkey contracts (EPC Contracts) involving supply of pipes as well as installation and commissioning of the said pipes to bring into existence a pipeline connecting the source to the destination or would procure the pipes themselves and separately obtain the services of construction contractors for installation and commissioning of the said pipes to bring into existence a pipeline. EPC Contractors, under no circumstances, have the complete responsibility of bringing into existence the pipeline. Inter-State pipelines like the one envisaged under the proposed business are... |
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