LS CABLE LIMITED Vs. DIRECTOR OF INCOME TAX

JUDGEMENT

(1.) FOUR applications are filed by the applicant, LS Cable Limited. The applicant is a company incorporated and located in Korea and is a tax resident of Korea. It is engaged in the business of manufacturing electric wire and cable for power distribution. The applicant was the successful bidder in the bids invited by the Delhi Transco Limited (DTL) for the supply, laying, jointing, testing and commissioning of the following projects:

(2.) IN AAR No. 858/2009, the following question is formulated by the applicant for seeking advance ruling from this Authority:

(3.) THE revenue submits that on perusal of the various documents submitted by the applicant, it is noticed that though the contracts were awarded separately, any breach under one contract was deemed breach of the other contracts and a right was conferred on the employer to terminate the other contracts at the risk and cost of the applicant. The award of separate contracts does not in any way dilute the responsibility of the applicant for successful completion of the facility as per the specifications. The three contracts are composite contracts and one cannot exist without the other. It then submits that the offshore supplies were on CIF basis and the contracts for offshore supply and onshore contracts were signed on the same date. The offshore supplies were made by the applicant and the onshore supplies of the services were also made by the applicant. The insurance requirement of the offshore supplies contract require that the applicant will take out and maintain insurance of cargo, installation, worker compensation, etc.