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2022 (7) TMI 180 - AUTHORITY FOR ADVANCE RULING, WEST BENGALClassification of goods - three-wheeled electrically operated vehicle, commonly known as e-rickshaw, when sold without battery - classifiable as an “electrically operated motor vehicle’ under HSN 8703 or not - rate of tax - HELD THAT:- Chapter 87 of the First Schedule to the Customs Tariff Act,1975 classifies “Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof” - Furthermore, ‘Other vehicles, with only electric motor for propulsion” under Tariff item 8703 80 covers ‘Three-wheeled vehicles’ having HSN Code 8703 80 40. It appears that e-rickshaw being a three-wheeled electrically operated vehicle would be classifiable under tariff item 8703 80 40. But the issue in hand is not to decide the HSN code of e-rickshaw rather the issue, as it is found, is confined to decide whether fitting of battery is a pre-condition or not so as to qualify an e-rickshaw as an electrically operated vehicle. In the present case, the power of a battery operated vehicle is solely generated from the rechargeable battery since it doesn’t have any other source of propulsion. “Electrically operated vehicles” as it has been explained in serial number 242A of the Notification No. 12/2019-Central Tax (Rate) dated 31.07.2019 requires a single factum that the vehicles will run solely on electrical energy derived from an external source or from one or more electrical batteries fitted to such road vehicles. There is not an iota of doubt that unless the battery is fitted to an e-rickshaw, it will not be capable to run. But the question arises that when an e-rickshaw, having a motor fitted on it, is supplied without battery, does it lose its original character and can be termed as ‘chassis’. Thus, when a vehicle which is solely operational on battery power is supplied without battery, the same will qualify as a supply of electrically operated vehicle and therefore shall be classifiable under tariff item 8703.
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