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2022 (8) TMI 807 - AAR - GSTClassification of manufactured goods - rate of GST - amusement park ride karts commonly known as Go-karts - classifiable under Chapter Tariff Heading 9508 of the First Schedule to the Customs Tariff Act, 1975 or not? - Go-karts manufactured and supplied by the Applicant which are not roadworthy and cannot be registered as Motor Vehicles with the Regional Transport Authority (RTO for short) are classifiable as Motor Vehicles meant for carrying of passengers / persons under Chapter Tariff Heading 8703 of the First Schedule to the Customs Tariff Act, 1975 or not? - Applicability of Sl.No.441A of Schedule III to Notification No.1/2017-Central Tax (Rate) dated 28-06-2017 as amended by Notification No.18/ 2021-Central Tax (Rate) dated 28-12-2021 or Sl.No.453 of Schedule III to Notification No.1/2017-Central Tax (Rate), dated 28-06-2017. HELD THAT:- The applicant states that they are engaged in manufacture and supply of ‘amusement park ride karts' commonly known as 'Go karts', which are mainly used for joy riding or amusement ride by both children as well as adults. The Applicant submits that the products manufactured by them are designed and shaped to run or drive only on extremely smooth, specially designed tracks or closed circuits and not on track or normal automobiles are able to operate - the Applicant states that they were under the impression that “Go Karts” are classifiable under Chapter Tariff Heading (CTH) 9503 but were advised to classify under CTH 8703 and pay GST at 28%. So the applicant wants to know whether 'amusement park ride karts' commonly known as 'Go karts', are to be classified under CTH 8703 taxable at 28% or under CTH 9503 taxable at 18%. Further as per the provisions of Section 39 of the Motor Vehicles Act, 1988 motor vehicles are not permitted to drive on roads without registration with the registering authority i.e., RTO - The applicant submits that as per the Motor Vehicles Act, Children below the age of 18 years are not permitted to ride or drive motor vehicles and require driving license to drive the vehicle. However, no such restrictions are imposed under any of the statute to use Go-karts by children below the age of eighteen years. Further, the 'amusement park ride karts' supplied by the applicant neither qualify as 'motor cars' nor as 'motor vehicle' under the Motor Vehicles Act, 1988 as they are not road worthy. They are also not designed for transport of persons and are meant only for amusement or entertainment for use on a fixed or restricted course. Hence they are not classifiable under CTH 8703. Whether the 'amusement park ride karts' supplied by the applicant are classifiable under CTH 9508? - HELD THAT:- Since the Go Karts manufactured and supplied by the applicant are designed and shaped to run or drive only on extremely smooth specially designed surfaced tracks and the same are primarily used across the globe as an amusement ride for children and families the same may be considered as amusement park rides as per the meaning assigned to “amusement park rides”. Whether the 'amusement park ride karts' commonly known as 'Go-karts' can be classified under Sl.No.441A of Schedule III of Notification No.18/2021-Central Tax (Rate) dated 28-12-2021? - HELD THAT:- As per serial No. 441A, CHAPTER number 9508, the amusement park rides are taxable at 9% CGST and 9% SGST.
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