Whether the vessels or ships that are afloat are not goods and immovable property? - CESTAT says Yes. - Whether GST would be applicable on sale / supply of floating vessels or ships?

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....of Central Excise And Service Tax (LTU) , Mumbai Versus The Shipping Corporation of India Ltd. - 2016 (8) TMI 852 - CESTAT MUMBAI The issue though has been discussed in the context of Service Tax but has far reaching implications. One of the reasons given by the Hon'ble tribunal (third member) while ascertaining the nature of transaction for the purpose of service tax is, "29 Not to b....

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....oods' in the Sale of Goods Act, 1930 is, however, attracted to certain appendages of land to the extent that they can be separated from land before sale as part of contract of sale. Hence, structures that can be detached from the land are considered to be moveable. Logically, the oceans and the seas are equivalences of land and the inextricability of a vessel or ship from the waters should bring t....

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....xable entry on 1st July 2003. Exclusion may not have been considered to be necessary for ships/vessels because the taxable entry came into effect on a much later date." Accordingly, tribunal has stated in clear terms that, "As conveyances, ships/vessels and motor vehicles move easily on water or land but, not being goods that are amenable to severance from land/water, are not distinguis....