LLOYD HELICOPTERS INTERNATIONAL PTY. LTD. Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) VERY interesting questions arise for consideration in this application under section 245Q(1) of the Income -tax Act, 1961 ('the Act') filed by Lloyd Helicopters International Pty. Ltd., a company incorporated in Australia and not resident in India within the meaning of the Act. The applicant, and two allied companies, are subsidiaries of an Australian holding company. This group of companies along with Helicopter Services A/S of Norway and Bond Helicopters of the U.K., carry on business in the operation of helicopters on a world -wide basis. It has a variety of helicopter operations such as search and rescue services, ambulance and emergency services, under slung load lifting, offshore oil and gas support, help in military operations, assistance to mining industries, tourism charters, taxi services and media work.

(2.) THE Command Petroleum (India) Pty. Ltd. ('the Command'), another Australian company, had entered into a contract on 28 -10 -1994 with three more companies, the Oil and Natural Gas Corporation Ltd. of India (ONGC), Videocon Petroleum Ltd., Ravva Oil (Singapore) Pty. Ltd. and the Government of India for the development of the Ravva Offshore Oil and Gas Field which includes, inter alia, extraction and production of mineral oil. This contract is in the nature of joint venture on a production sharing basis for the above purpose. The fuller details of this contract are not relevant for the purposes of this case.

(3.) IN pursuance of the wishes of its co -venturers and in order to effectively carry out its activities in terms of the above contract, Command entered into an agreement on 13 -9 -1995 with the applicant -company under which the applicant -company is required to provide helicopter services to facilitate the operations of the joint venture. The Ravva Oil and Gas Field has its bases, drilling units and operation platforms at various places whose geographical coordinates are set out as follows in Schedule I to the agreement : Location Latitude Longitude Ravva -A Platform 16 degrees 28'N28 degrees 11'E Ravva -B Platform 16 degrees 23'N82 degrees 07'E Surasaniyanam Plant Facility16 degrees 29'N82 degrees 05'E Surasaniyanam Living Quarter 16 degrees 28'N82 degrees 06'Eand Heli -Pad Rajahmundry17 degrees 00'N81 degrees 45'E Vishakhapatnam17 degrees 42'N83 degrees 15'E Drilling Unit and other new Within 20 nautical miles of Ravva -A platformsPlatform. The joint venture, therefore, needed transport for the frequent conveyance of men and materials from their fixed bases such as at Rajahmundry, Vishakhapatnam and Surasaniyanam to the actual work -spots and it is this need that is sought to be fulfilled by the agreement with the applicant - company.