TMI Blog2022 (7) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... sion. 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. - Case Number 06 of 2022 Order number 04/WBAAR/2022-23 - - - Dated:- 30-6-2022 - MR. BRAJESH KUMAR SINGH, AND MR. JOYJIT BANIK, MEMBER Applicant s representative heard : Mr. Sandip Choraria, Authorised Advocate Mr. Rajkumar Banerjee, Authorised Advocate Preamble A person within the ambit of Section 100 (1) of the Central Goods an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion has neither been decided by nor is pending before any authority under any provision of the GST Act. 1.6 The officer concerned from the Revenue has raised no objection to the admission of the application. 1.7 The application is, therefore, admitted. 2. Submission of the Applicant The submission of the applicant in respect of statement of fact is reproduced as follows: 2.1 Meaning of E-Rickshaw: The word E-Rickshaw is not defined under the GST law. However, it is defined in sub-section (2) of Section 2A of the Motor Vehicles Act, 1988 as follows: (2) For the purposes of this section, e-cart or e-rickshaw means a special purpose battery powered vehicle of power not exceeding 4000 watts, having three wheels for carrying goods or passengers, as the case may be, for hire or reward, manufactured, constructed or adapted, equipped and maintained in accordance with such specifications, as may be prescribed in this behalf. So, as per above definition, an E-Rickshaw is: special purpose battery powered vehicle; of power not exceeding 4000 watts; having three wheels; for carrying goods or passengers, as the case may be, fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d are the dominant power supply for vehicles such as cars, aircraft, and boats, known as internal-combustion-engine vehicles (ICEV). A Battery operated vehicle does not have internal combustion engine, fuel cell, or fuel tank. 2.4 Embossment of motor number in case of battery operated vehicles: Rule 122 of CMVR, 1989 provides for Embossment of the chassis number and engine number or in the case of battery operated vehicles, motor number and month of manufacture and states as follows: (1) On and from the date of commencement of the Central Motor Vehicles (Amendment) Rules, 1993, every motor vehicle including agricultural tractor and construction equipment vehicle other than trailer and semi-trailer shall bear the identification number including month and year of manufacture, embossed or etched or punched on it. Provided that in such vehicles where space is insufficient for etching, embossing or punching the engine number/motor number, chassis number and month of manufacture, the etching, embossing or punching of year and month of manufacture shall be on an identification plate welded or rivetted to the body of the vehicle. Analysis of Rule 122: R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . While Schedule-I is meant for goods @ 2.5% CGST, Schedule-II is meant for goods @ 6% CGST, Schedule-III is meant for goods @ 9% CGST, Schedule-IV is meant for goods @14% CGST, Schedule-V is meant for goods @ 1.5% CGST, Schedule-VI is meant for goods @ 0.125% CGST. Equivalent rates are there under State GST law, thus making total rates on intra-state supplies of goods @ 5%, 12%, 18%, 28%, 3% and 0.25% respectively. The goods falling under a particular chapter in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) may attract different rates under different schedules in GST depending upon the chapter heading, sub-heading and tariff item in which it falls and it is not necessary that such goods shall attract a single rate under a particular rate schedule in GST. In the rate notification mentioned above, for example-vehicles falling under chapter 87 find a place in four schedules i.e. Schedule-I- 2.5% (Sl. No. 242A to 243A); Schedule-II-6% (Sl. No. 206 to 211); Schedule-III-9% (Sl. No. 399A to 403A, 452E to 4520); and Schedule-IV-14% (Sl. No. 163A to 175). 2.6 Whether e rickshaw without battery disqualifies to be GST tax rate applicable t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in a diesel /petrol vehicles. o The Explanation to Entry No., 242A in Schedule-I defines Electrically operated vehicles as vehicles which are run solely on electrical energy derived from an external source or from one or more electrical batteries fitted to such road vehicles and shall include E- bicycles. o E-Rickshaw as defined in sub-section (2) of Section 2A of the Motor Vehicles Act, 1988 inter alia means a special purpose battery powered vehicle of power not exceeding 4000 watts, having three wheels. o Further, as per Rule 2(u) of The Central Motor Vehicles Rules, 1989, Battery Operated Vehicle means a vehicle adapted for use upon roads and powered exclusively by an electric motor whose traction energy is supplied exclusively by traction battery installed in the vehicle. o In the instant case, E-Rickshaw intended for manufacture by the applicant would use only electric motor for propulsion (i.e powered exclusively by a 48V electric motor) whose traction energy is supplied exclusively by 4 batteries (12V*4) installed in the vehicle. o The definition of an e-rickshaw or the battery operated vehicle under The Central Motor Vehicles Rules, 1989 n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o The Advance Ruling No. 06/WBAAR/2020-21 dated 10.08.2020 in the case of M/s. Hooghly Motors Pvt. Ltd is not applicable in the case of the applicant in terms of sub-section (1) of section 103 of the GST Act. 2.8 The authorised advocate of the applicant, in course of personal hearing, has also placed his reliance on the advance ruling given by the Orissa Authority for Advance Ruling in the case of Anjali Enterprises [ORDER NO. 01/ODISHA/AAR/2021-22 dated 15.04.2021] wherein it is held that A two or three-wheeled battery powered electric vehicle when supplied with or without battery pack is classifiable under HSN 8703 as an 'electrically operated vehicle' and is taxable @ 5% GST . 3. Submission of the Revenue 3.1 The officer concerned from the revenue has expressed her view as under: The Applicant has taken the plea that the three-wheeled e-rickshaw intended for manufacture by him is an electrically operated vehicle/Three-wheeled electric vehicle falling under tariff heading 87038040 and on which GST is to be levied @12% up to 31.07.2019 and @5% thereafter. The applicant has presented facts and grounds in regard to his plea. But as per Rule 2(u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to decide whether fitting of battery is a pre-condition or not so as to qualify an e-rickshaw as an electrically operated vehicle. 4.5 Electrically operated vehicles, including two and three wheeled electric vehicles attract tax @ 5% [CGST @ 2.5% + SGST @ 2.5%] with effect from 01.08.2019 vide serial number 242A inserted through Notification No. 12/2019-Central Tax (Rate) dated 31.07.2019. Further, Explanation given in the respective entry reads as follows: For the purposes of this entry, Electrically operated vehicles means vehicles which are run solely on electrical energy derived from an external source or from one or more electrical batteries fitted to such road vehicles and shall include E- bicycles. 4.6 The argument of the applicant in this regard is that the e-rickshaw which the applicant intends to manufacture would use only electric motor for propulsion whose traction energy is supplied exclusively by batteries installed in the vehicle. The applicant contends further that use of internal combustion engines (ICEs) is another way used for propulsion of diesel/petrol driven vehicles and the electric motor used in an electric vehicle is not an engine. 4.7 To procee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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