Case nº A.A.R. Nos. 1131, 1133 of 2011, 1415 and 1416 of 2012 of AAR Cases, April 04, 2016 (case In Re: Corpro Systems Ltd. Vs)
| Judge | For Appellant: Abhimanyu Jhamba, Sanjay Agarwal and Taranpreet Singh, FCA's and For Respondents: Nausheen J. Ansari, CIT, DR, AAR, ND, S.K. Chatterjee, Jt. CIT (IT) and S.S. Negi, JCIT, DR, AAR |
| President | V.S. Sirpurkar, J. (Chairman), A.K. Tewary, Member (R) and R.S. Shukla, Member (L) |
| Resolution Date | April 04, 2016 |
| Issuing Organization | AAR Cases |
Order:
V.S. Sirpurkar, J. (Chairman)
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This ruling will cover the AAR Application Nos. 1131, 1133, 1415 & 1416 as a common question is involved in all these four applications. All the four applications have been filed by one Corpro Systems Limited, UK. We shall use the facts in Application No. 1131 only as all the facts about the activity of the applicant are similar, if not identical It is stated as it is the claim of the applicant company that it is a tax resident of United Kingdom ('UK') and is engaged in rendering coring services/providing coring equipments and other associated services to global oil & gas companies. It is apparent from the further facts that one Schlumberger Asia Services Limited ('SASL'), Schlumberger Solutions Private Limited ('SSPL') and Dowell Schlumberger International Inc. 'DSI') formed a consortium and this consortium has entered into a contract with Oil & Natural Gas Corporation Limited ('ONGC for short). It is further pointed out that out of these three consortium companies, SSPL has entered into sub-contract agreement with Corpro (Sub-Contract agreement # 1603) for provision of coring services. The applicant has provided the agreement as Exhibit- 2 to this application. It is further explained that coring services generally include the removal of sample formation material from a wellbore for further analysis of the said samples. These samples are required to be taken in an undamaged and physically unaltered state This formation material might be solid rock, friable rock, conglomerates, unconsolidated sands, coal shale's, gumbos, or clays. These samples are then provided to clients for analysis to examine the presence of oil in the block for exploration purposes. It is on this basis that at least in the present Application No. 1131, the claim is made that all these activities will be covered in the services in connection with in the prospecting for or extraction or production of mineral oils. It is further claimed that even if the applicant company supplies plant and machinery on hire which is used or to be used in prospecting or extraction or production of mineral oils even the income generated from such activity would be covered specifically under Section 44BB. The applicant also points out that the mineral oil "includes" petroleum and natural gas as per the Explanation to Section. The applicant also points out that the term "plant" includes ships, aircraft, vehicles drilling units, scientific apparatus...
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