Case Details: Amar Marine Enterprises vs. Commissioner of Central Excise, Mangalore (2025) 35 Centax 189 (Tri.-Bang)
Judiciary and Counsel Details
- P.A. Augustian, Member (J) & R. Bhagya Devi, Member (T)
- Shri Pradyumna G.H., Advocate, for the Appellant.
- Mrs Money Jain, Joint Commissioner (AR), for the Respondent.
Facts of the Case
The assessee was engaged in the repair and maintenance of ships. During the audit, it was observed that in respect of repair and maintenance carried out on foreign ships, since the payments are received in convertible foreign currency, service tax was not discharged by them. The matter reached the South Zonal Bench of CESTAT.
CESTAT Held
The Tribunal held that the assessee had undertaken repair and maintenance service of the foreign ships docked at the Indian Port. After repair, they leave the Indian Territorial Waters and enter the International Maritime Zone. It was also a fact that for the above repairs, payments were received in convertible foreign currency. Thus, the conditions laid down vide Rule 3(2) of the Export Service Rules read with the Board Circular No. 111/5/2009-S.T., dated 24.02.2009 and the clarification by TRU-141/10/2011, dated 13.05.2011 stands satisfied. The Circular states that “used outside India should be interpreted to mean that the benefit of the service should accrue outside India”.
List of Cases Cited
- Arcelor Mittal Stainless (I) Pvt. Ltd. v. Commissioner — 2023 (11) Centax 269 (Tri. – L.B.) — Followed [Paras 3.1, 7]
- Commissioner v. B.A. Research India Ltd. — 2010 (18) S.T.R. 439 (Tribunal) — Referred [Para 3.1]
- Commissioner v. Motor World — 2012 (27) S.T.R. 225 (Kar.) — Relied on [Para 4]
- Commissioner v. SGS India Pvt. Ltd. — 2014 (34) S.T.R. 554 (Bom.) — Referred [Para 3.1]
- SGS India Pvt. Ltd. v. Commissioner — 2011 (24) S.T.R. 60 (Tribunal) — Referred [Para 3.1]
List of Departmental Clarification Cited
- C.B.E. & C. Circular No. 111/5/2009-S.T., dated 24-2-2009 [Paras 3, 8, 9]
- C.B.E. & C. Circular No. 141/10/2011-TRU, dated 13-5-2011 [Paras 3, 9]
List of Notifications Cited
- Notification No. 21/2003-S.T., dated 20-11-2003 [Paras 2, 3]
- Notification No. 9/2005-S.T., dated 3-3-2005 [Para 3]
- Notification No. 10/2005-S.T., dated 3-3-2005 [Paras 2, 3]
