ATO Interpretative Decision

ATO ID 2004/899 (Withdrawn)

Excise

Energy Grants (Credits) Scheme: marine transport - reefer sitting on a wharf
FOI status: may be released

This ATO ID is withdrawn from 1 July 2012, the date the Energy Grants (Credits) Scheme Act 2003 was repealed.
Despite its withdrawal, this ATO ID continues to be a precedential ATO view in respect of the period the Act was in force, 1 July 2003 up to and including 30 June 2012.

This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

Status of this decision: Decision Withdrawn 1 July 2012

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

This ATOID provides you with the following level of protection:

If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.

Issue

Is the use of diesel fuel to power a reefer's generator, whilst the reefer is sitting on a wharf awaiting transportation or following transportation, 'use in marine transport' for the purposes of section 36 of the Energy Grants (Credits) Scheme Act 2003 (EGCSA)?

Decision

No. The use of diesel fuel to power a reefer's generator, whilst the reefer is sitting on a wharf awaiting transportation or following transportation is not 'use in marine transport' for the purposes of section 36 of the EGCSA.

Facts

An entity purchase diesel fuel which they place in a 'reefer'.

A reefer is a refrigerated container that ordinarily uses diesel fuel from its own tank to power the reefer's refrigeration plant. The reefer's refrigeration plant must be kept running at all times to ensure that the contents of the reefer are kept at the required temperature.

A reefer is placed on the entity's vessel and transported between two places by sea.

Prior to being loaded onto the vessel, the reefer may remain on a wharf for variable periods of time. Once the vessel arrives at its destination, the reefer is unloaded from the vessel, but may remain on the wharf for a period of time prior to being transported to its ultimate destination.

Reasons for Decision

Subsection 53(1) of the EGCSA provides that an entity is, subject to certain conditions, entitled to an off-road credit if they purchase diesel fuel for a use by them that qualifies. Under subsection 53(3) of the EGCSA, 'use in marine transport' is a use that qualifies.

Section 36 of the EGCSA sets out the meaning of the expression 'use in marine transport', which includes various uses. All of the uses covered by section 36 require the fuel to be used 'in a vessel' or 'in equipment in or on a vessel.'

In this instance, the reefer is sitting on the wharf, either awaiting loading onto the vessel or following its unloading from the vessel. At neither time is the reefer actually on the vessel and therefore the use of diesel fuel to chill the reefer cannot be considered to be 'use in equipment in or on a vessel.'

Accordingly, the use of diesel fuel to power a reefer's generator, whilst the reefer is sitting on a wharf awaiting transportation or following transportation, is not 'use in marine transport' as defined in section 36 of the EGCSA.

Date of decision: 4 November 2004

Legislative References:
Energy Grants (Credits) Scheme Act 2003
   section 36
   subsection 53(1)
   subsection 53(3)

Keywords
EGCS marine transport
EGCS marine transport incidental use

Business Line: Indirect Tax

Date of publication: 19 November 2004

ISSN: 1445-2782

history

	Date:	Version:
	4 November 2004	Original statement
You are here →	1 July 2012	Archived

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