9911796707
TMI Blog2022 (10) TMI 857X X X X Extracts X X X X X X X X Extracts X X X X ..... or Yamaha Motor Company's marine products since 1979. The applicant imports and supplies Yamaha Out Board Motors and related parts to their various customers in India. Imports are channelized through their offices located in the State of Tamil Nadu. The applicant also provides repairs and maintenance service for Out Board Motors and also sells spare parts of marine engines. In addition to this, the applicant also imports fishing hooks and agricultural equipment for sales in markets in India. 2. At the outset, it is clarified that the provisions of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act) and the Kerala State Goods and Services Tax Act, 2017 (hereinafter referred to as KSGST Act) are the same ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only by fitting the motor to a boat. The cooling system of the outboard motor is designed to take water through the propellers and hence the engine cannot be operated out of water. These are water-cooled engines and not air-cooled. The OBM cannot be utilized unless otherwise fitted on the boat even for doing service the OBM is put into a water tank to attend to repairs and maintenance. 4.2. The applicant requested an advance ruling regarding the classification and the rate applicable for sales of OBMs to fishermen and other Government agencies and other purposes including sales done through dealers' authorized service centres and boat builders. 4.3. The applicant further states that Section 97(2) of the CGST/SGST Act, 2017 stipulates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lling or production platforms. 250 8906 Other vessels, including warships and lifeboats other than rowing boats 251 8907 Other floating structures (for example, rafts, tanks, coffer-dams, landing-stages, buoys and beacons) 252 Any chapter Parts of goods of headings 8901, 8902, 8904, 8905, 8906, 8907 4.5. The Out Board Motors are parts of vessels falling under Tariff Item nos. 8901, 8902, 8904 and 8906, therefore, the GST rate for Out Board Motors supplied as given above falls under the rate of 5% and not at the rate of 28%. The Ministry of Finance (Tax Research Unit) has already issued a clarification vide Circular No.52/26/2018-GST dated 09.08.2018 that 'Reference has been received regarding GST rates on a marine engine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts of goods of heading 8901, 8902, 8904 and 8906. 4.7. It is further submitted that the applicant proposes to make sales of OBMs falling under Tariff Item No.8407 21 00 and spares parts for OBM at a GST rate of 5%; (i) to fishing industry based on identity card issued by the Fishermen Society of Fisheries Department; (ii) to dealers/authorized service centres appointed in the respective territory to take care of supplies based on the declaration by the customer regarding end-use; (iii) to the ferry boat industry based on the declaration by the customer regarding the end-use; (iv) to boatbuilders based on the declaration issued by them; (v) to Government departments based on the tender documents. 5. Remarks of the Jurisdictional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Tax (Rate) dated 28.06.2017, and regarding the applicability of clarification issued vide Circular No.52/26/2018-GST (Point 10.1) in respect of the issue. 7.2. We have gone through the contentions of the applicant and the specific remarks offered by the jurisdictional officer. To classify the products, the provisions of Notification No 01/2017 Central Tax (Rate) dated 28.06.2017 are to be verified. The Outboard motors imported by the applicant are classified under Customs Tariff Heading 8407 21 00 - Outboard motors - Marine Propulsion engines - Spark-ignition reciprocating or rotary internal combustion piston engines and attract GST at the rate of 28% as per entry at Sl. No. 114 of Schedule IV of Notification No. 01/2017 Central T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... L. No. 252 of Schedule I of the said notification. The Marine engine for fishing vessel falling under Tariff item 8408 10 93 of the Customs Tariff Act, 1975 would attract a GST rate of 5% as per S. No. 252 of Schedule I of the notification No. 01/2017-Central Tax (rate) dated 28.06.2017. 10.2 Therefore, it is clarified that the supplies of marine engine for fishing vessel (being a part of the fishing vessel), falling under tariff item 8408 10 93 attracts 5% GST." 7.3. The jurisdictional officer has raised a contention that the item should be classified under the heading HSN Code Out Board Motors - 8407 21 00 and that the tax rate is 28%. This contention was examined in light of the provisions contained in Notification No. 01/2017 CT (Rat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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