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Indian territorial waters,

Kamal Jha (Article) (56 Points)

18 April 2009

Dear sir,

how much distance stands extended under the Indian territorial waters, 12 nautical miles or 200? (as applicable for the current A.Y.), for the purpose of Excise. with reference to case-'ABAN LOYD CHILES OFFSHORE Ltd.' 2008, Supreme court considred 200 nautical miles as under indian territorial waters.

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2 Replies

MOHIT MAHAJAN (LCS, ACA) (2050 Points)
Replied 18 April 2009

Hello Kamal

Territorial waters means that portion of sea which is adjacent to the shores of a country. At present it's 12 nautical miles. (Its since 1967 and can't be ordinarily changed)

There is another term 'Exclusive economic zone' which extends to 200 nautical miles from the base-line for our country.

In territorial waters a country has complete control in respect to airway, sea route as well as sea bed; however in exclusive economic zone although country has exclusive rights to use it for economic purposes , other countries have right of navigation and over-flight rights. Other countries can lay submarine cables and pipelines with consent of Indian Government.

Although I havent read the case but I think court has referred territorial waters in terms of 'Exclusive Economic Zone' of our country.

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Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 23 April 2009

When we say India, territorial water (12 nautical miles) is considered part of India. The provision of service tax extend in india, and hence in Indian territorial waters. However, provision of service tax, in certain cases has been extended to exclusive economic zone.