2023 (9) TMI 851 - AUTHORITY FOR ADVANCE RULING, TELANGANA

Classification of goods - Automobile Accessories - Electrical & mechanical spare parts of electric vehicle - to be classified under HSN code 87031010 or not - HELD THAT:- In view of the clarification by Circular No. 179/11/2002-GST in f.no. CBIC-190354/172/2002-TRU of Govt. of India Ministry of Finance, all electrically operated vehicles including three wheeled electric vehicles are classified under HSN 8703 for the purpose of taxation under GST.

Further the above entry does not have any reference to electrical and mechanical spare parts of the electrical vehicle. The Hon’ble Supreme Court of India (5 Member constitution bench) in VVS. SUGARS VERSUS GOVERNMENT OF ANDHRA PRADESH AND OTHERS [1999 (4) TMI 519 - SUPREME COURT] held that ‘A taxing statute must be interpreted as it reads, with no additions and no subtractions on the ground of legislative intent or otherwise’. Therefore it cannot be inferred that parts of electrical vehicles fall under the above HSN code. Hence the goods “Electrical and Mechanical spare parts of electrical vehicles” fall under S.No 453 of Schedule-III of Notification no. 01/2017 dt:28.06.2017 i.e., “Goods which are not specified in Schedule I, II, IV, V or VI” falling in any chapter of HSN.