#bareboat charter

The Supreme Court held that arrest under Admiralty Act 5(2) requires an ongoing demise charterer status. A termination notice ending a bareboat charterparty ends that status, so arrest cannot be sustained and owners are protected from sister ship arrests.

CESTAT Chennai rules that bareboat charter agreements, which transfer possession and control of vessels to charterers, do not qualify as 'supply of tangible goods service' under service tax law. This decision exempts such arrangements from service tax liability, providing clarity for businesses engaged in vessel leasing and dredging operations.