TMI Blog2019 (5) TMI 494X X X X Extracts X X X X X X X X Extracts X X X X ..... ations given by the applicant there is no doubt that the subject vehicle will attract 22% compensation cess under Sr. No. 52 B of the said Notification - Hence if the vehicle satisfies only the conditions mentioned in main clause but is not satisfying any one or all of the conditions mentioned in Explanation , then it would not be covered under Entry at Sr. No. 52B of the said Notification. For the purpose of Cess @ 22% under Sr. No: 52B of Notification No. 1/2017 Compensation Cess (Rate) dated 28.06.2017 as amended, whether the ground clearance of the vehicle is to be considered in laden condition or in unladen condition? - HELD THAT:- The rate of tax on the subject vehicle before it is sold to buyers. It is but natural that the ground clearance given in the Notification must arrived in unladen state, when there are no passengers/driver occupying the vehicle. We are of the opinion and we agree with the submissions of the jurisdictional office in this regard that the ground clearance in laden condition cannot be considered because the same will vary depending on the weight of passengers and luggage occupying the vehicle and will therefore cannot be constant. Whether Tata Harr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capacity 1956 CC Fuel Diesel Market segment Utility Vehicle (UV) Length 4598mm Ground clearance (Unladen) 205mm Ground clearance (Laden) 160mm 1.2 Under Sr. 52B of Notification No. 1/2017-Compensation Cess (Rate) dated 28.06.2017 as amended, SUV has been defined as under: S.No. Chapter/Heading/sub-heading Tariff item Description of Goods Rate of goods and services tax compensation cess (1) (2) (3) (4) 52B. 8703 Motor vehicles of engine capacity exceeding 1500 cc, popularly known as Sports utility Vehicles (SUVs) including utility vehicles. Explanation. - For the purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AS PER THE APPLICANT 2.1 The Applicant has submitted that they are eligible to seek an advance ruling, in respect of determination of classification of Tata Harrier vehicle and tax liability to discharged on it and have therefore made this application. 2.2 The Applicant is in the business of manufacturing and selling of both commercial as well as passenger vehicles and is launching its passenger vehicle Tata Harrier, with the following technical specifications. Particulars Details Seating capacity 5 persons including driver Engine capacity 1956 CC Fuel Diesel Market segment Utility Vehicle (UV) Length 4598mm Ground clearance (Unladen) 205mm Ground clearance (Laden) 160mm 2.3 They have reproduced Notification No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n No. 1/2017-Compensation Cess (Rate) dated 28.06.2017 as amended would fall under 52A attracting 20% cess or under Sr. No. 52B, attracting 22% and whether the ground clearance should based on laden weight or unladen weight. 03. CONTENTION - AS PER THE CONCERNED OFFICER 3.1 The jurisdictional office has made submissions in reply to the application. They have with reasonings concluded as under:- 3.1.1 In view of the technical specifications provided by the applicant, i.e., the engine cylinder capacity and the type of engine (compression-ignition internal combustion piston engine - although not mentioned in their application but deemed to be so by virtue of the tariff sub-heading claimed as 8703 32) makes it clear that the vehicle falls under Chapter 8703 3291 (Motor Cars) of the Customs Tariff Act, 1975. 3.1.2 There is a difference between the two entries, i.e., 52A 52B given in the amendment Notification and the applicant s product matches the description given at Sl. No. 52B, thereby attracting the Compensation Cess of 22%. The applicant s new product Tata Harrier will fall in the same category attracting Compensation Cess as per S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is classifiable under Tariff Item 8703 32 91 or 8703 32 99 of the First to the Customs Tariff Act, 1975 (51 of 1975)? 5.2 Chapter 87 of the GST Tariff deals with Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof. Hence the said vehicle as described by the applicant fall under Chapter Heading 87 of the GST Tariff. Motor Cars principally used for transport of persons, other than those of heading 8702, falls under heading 8703 of the Tariff. Heading 8702 motor vehicles for transport of 10 or more persons and in the subject case the motor vehicle is has a capacity of 5 persons and is therefore classifiable under heading 8703. 5.3 The applicant in their application has mentioned that Under Chapter Sub-heading 8703 32 vehicles with only compression-ignition internal combustion piston engine (diesel or semi-diesel) of a cylinder capacity exceeding 1500 cc but not exceeding 2500 cc have been specified and they have further submitted that the subject vehicle falls under the subject category. Considering the subject vehicle as having a compression-ignition internal combustion piston engine (diesel or semi-diesel) of a cylinder capaci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n , then it would not be covered under Entry at Sr. No. 52B of the said Notification. Question No. 3:- The third question raised by the applicant is for the purpose of Cess @ 22% under Sr. No: 52B of Notification No. 1/2017 Compensation Cess (Rate) dated 28.06.2017 as amended, whether the ground clearance of the vehicle is to be considered in laden condition or in unladen condition? 5.5 The rate of tax on the subject vehicle before it is sold to buyers. It is but natural that the ground clearance given in the Notification must arrived in unladen state, when there are no passengers/driver occupying the vehicle. We are of the opinion and we agree with the submissions of the jurisdictional office in this regard that the ground clearance in laden condition cannot be considered because the same will vary depending on the weight of passengers and luggage occupying the vehicle and will therefore cannot be constant. Question No. 4:- The fourth question raised by the applicant is whether Tata Harrier vehicle whose ground clearance in unladen condition is 205 mm and in laden condition is 1.60 mm, would fall under $r. No. 52B of the Notification No. 1/2017-C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) NO.GST-ARA- 93/2018-19/B-32 Mumbai, dt. 22/03/2019 For reasons as discussed in the body of the order, the questions are answered thus - Question 1.1 Whether Tata Harrier vehicle, which has following specifications, is classifiable under Tariff Item 8703 32 91 or 8703 32 99 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975)? Answer:- In view of the above discussions Tata Harrier vehicle, is classifiable under Tariff Item 8703 32 91 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) Question 1.2 Under Sr. 52B of Notification No. 1/2017-Compensation Cess (Rate) dated 28.06.2017 as amended, SUV has been defined as under: S.No. Chapter/Heading/sub-heading Tariff item Description of Goods Rate of goods and services tax compensation cess (1) (2) (3) (4) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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