#Supply of Tangible Goods

CESTAT Chennai rules that payments under voyage charter agreements for coastal cargo transport constitute taxable transportation services, not supply of vessels for use, thereby excluding them from reverse charge under service tax law. This clarifies the tax treatment for shipping intermediaries and manufacturers relying on third-party vessels, ending ambiguous classification of freight-based payments as goods rental.

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.