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2019 (9) TMI 988 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRALevy of GST or IGST - Marine Duty hydraulic equipment, which is being designed and custom built by us for being fitted on a Barge - Serial No 246 of Schedule. I of GST Notification No 1/2017 dated 28th June 2017 - Input tax credit - indigenous and imported inputs which are being used for manufacture of the above equipment. HELD THAT:- The Marine Duty Hydraulic Cylinders and Hydraulic Power Packs will be supplied by them to their client M/s Mandovi Drydocks who will be using the same for the barges being manufactured by them. The barges that will be manufactured will be used for transporting cargo/goods to mid-sea where they would be unloaded/dumped. Hence there is no doubt that such barges would fall under Chapter 8901, as claimed by the applicant. The barge will be carrying materials which will be discharged in mid-sea. Therefore it can be assumed that the barge will be used for transporting materials to be unloaded at mid-sea. We also find that the said products, being tailor made for being fitted only on such barges, cannot be used elsewhere and without the same the barge will not be able to function for the purpose for which it is built, namely for unloading materials in mid-sea. Hence the subject products i.e. Marine Duty Hydraulic Cylinders and Hydraulic Power Packs, can be considered as an integral part of such barge and therefore would fall under Sr. No. 252 of Schedule I of GST Notification No. 1/2017 as Parts of goods of headings 8901. GST @ 5% (CGST of 2.5% and SCGT of 2.5%) or IGST @ 5% [under Serial No. 252 of Schedule I of GST Notification No. 1/2017], will be applicable for the above mentioned Marine Duty hydraulic equipment, which is being designed and custom built for being fitted on a Barge falling under Serial No 246 of Schedule. I of GST Notification No 1/2017 dated 28th June 2017. Input tax credit - indigenous and imported inputs which are being used for manufacture of the above equipment - HELD THAT:- Chapter V of the CGST Act, 2017 comprising of Sections 15 to 21, contains provisions pertaining to availment and utilization of Input Tax Credit. Subject to satisfying the provisions of Chapter V, we are of the opinion that the applicant can claim input tax credit in such a situation.
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