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2021 (12) TMI 573 - AAR - GSTClassification of goods - Pure supply of goods or not - rate of tax on supply of goods - parts of diesel marine engine or genset supplied or to be supplied by the Applicant to the Indian Navy - chargeable to 5% IGST or 2.5% CGST + 2.5% SGST as 'parts of heading of 8902, 8904, 8905, 8906 and 8907'? - applicability of Sr. No. 252 of Notification No. 11/2017-Central Tax (Rate), dated 28 6-2017 - HELD THAT:- The applicant referred to documents produced at Annexure B to Annexure F of the application, and referred to goods as mentioned therein. The applicant has produced the tender documents; Standard sourcing process; Purchase order raised by the customer i.e. Indian Navy; Chartered Engineer's certificate which specifies that the parts supplied by the Applicant to the Indian Navy are capable of being used as part of the ships or vessels and Declaration-Certificate from the Indian Navy certifying that goods supplied by the Applicant are for the exclusive use of the Indian Navy, and fall under entry at Sr. No. 252 of Notification No. 1/2017-C.T.(R), dated 28th June, 2017.” By mainly and only placing the reliance on these documents, the applicant argued the case during final hearing. Hence, present decision shall apply to the situation or transaction where the said transaction is supported by such documents or similar documents and not to the any other transaction. The present ruling shall not apply to transactions where the documents similar to described above are absent. Parts of goods of headings 8901, 8902, 8904 to 8907 of any chapter are chargeable to CGST/SGST @ of 2.5% each. The Applicant has submitted that they supply parts of marine diesel engines and gensets to the Indian Navy, for application/ use in ships or vessels and the parts supplied by / to be supplied by the Applicant, includes numerous and diverse parts, intended for use in marine engines or gensets, of ships or vessels (of the Indian Navy) failing under Chapter No. 89 of Customs Tariff Act, 1975, typically under tariff heading number 8901,8902,8904,8905, 8906 and 8907 - in the case of IN RE: M/S. MAN ENERGY SOLUTIONS INDIA PRIVATE LIMITED (FORMERLY KNOWN AS MAN DIESEL & TURBO INDIA PRIVATE LIMITED) [2021 (8) TMI 49 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA], it was held that Marine Engines and parts thereof are essential requirements in manufacture of ship, vessels, boats, floating structures etc., falling under Tariff headings 8901, 8902, 8904, 8905, 8906, 8907, and therefore the said goods can be considered as parts of ship, boat, vessels etc. and accordingly, the said goods would be covered under Sr. No.252 of the above mentioned Notification. Thus, parts of diesel marine engine or genset supplied or to be supplied by the Applicant to the Indian Navy are chargeable to 5% IGST or 2.5% CGST + 2.5% SGST as 'parts of heading of 8902, 8904,8905, 8906 and 8907' in terms of Sr. No. 252 of Notification No. 1/2017-Central Tax (Rate), dated 28 6-2017, only if they are used in diesel marine engine or genset which are further used in ships and vessels falling under chapter headings 8902, 8904, 8905, 8906 and 8907 of the GST Tariff.
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