TMI Blog2022 (12) TMI 510X X X X Extracts X X X X X X X X Extracts X X X X ..... ile workshops, mobile radiological units etc. Applicant further stated that the Garbage Tipper vehicles are specially / exclusively designed for garbage application and for use by Govt. Bodies. The Garbage Tipper vehicle enable access to small lanes for garbage collection for tipping the same in to a compactor or at dumping sites as decided by Govt. Bodies. This Garbage Tipper vehicle has 60:40/ 70:30 partition for segregation of DRY waste WET waste at source (while collecting it from lanes/houses) as per National Green Tribunal (in short NGT) guidelines. The bodies are designed with tarpaulin/ hard metallic cover to transfer garbage under covered condition as per NGT guidelines. Also, these vehicles have exclusive features of Power Take off (PTO) through gear box for operating hydraulic tipping equipment. In the column of Type of vehicle it is mentioned as goods carrier . Thus, as per the certificate itself it is goods carrier. Thus the said vehicle would get covered under heading 87049090, after considering all the contentions and facts as available on record. The dealer has not produced details as to tonnage of vehicles, so this finding that it is covered by 87049090 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above mentioned Garbage Tipper vehicles? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT: The submissions, as reproduced verbatim, could be seen thus- 2.1 The Applicant is in the business of manufacturing and selling of vehicles, chassis for vehicles and parts thereof. The Applicant manufacture commercial vehicles as well as passenger vehicles. 2.2 The Applicant is planning to manufacture Tata Ace Garbage Tipper vehicles its variants (hereinafter referred to as Garbage Tipper vehicle), which will be supplied to Municipal Corporations, Municipalities, Urban Development Bodies, Gram Panchayats and to contractors to whom operation maintenance contract has been awarded by these Govt, bodies (herein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cover trucks used for cleaning streets, gutters, airfield runways etc. (sweepers, sprinklers, sprinkler-sweepers cesspool emptier), break down lorries, crane lorries, fire fighting vehicles, concrete-mixers lorries, spraying lorries, mobile workshops, mobile radiological units etc. 2.8 In exercise of the power conferred by Section 5(1) of the Integrated Goods and Services Tax Act, 2017 (in short IGST Act), the Central Government has issued Notification No. 1/2017-lntegrted Tax (Rate) dated 28.06.2017 as amended. The IGST rate on goods are specified in various Schedules notified by the said Notification. 2.9 For Special Purpose Motor Vehicles, IGST rate of 18% has been specified under Sr. No. 401A under Schedule III of IGST Rates by Notification No. 1/2017-lntegrated Tax (Rate), dated 28.06.2017 as amended. For ready reference the details are reproduced below: S.No. Chapter/ Heading/ Subheading/ Tariff Item Description of Goods 401A 8705 Special purpose motor vehicles, other than those principally designed for the transport of persons or goods (for example ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a decision provided by the Authority or the Appellate Authority or the National Appellate Tribunal to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub-section (1) of section 100 or of Section 101C, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant; (c) applicant means any person registered or desirous of obtaining registration under this Act; Section 97. Application for advance ruling: (1) An applicant....................... (2) The question on which the advance ruling is sought under this Act, shall be in respect of,- (a) classification of any goods or services or both; (b) applicability of a notification issued under the provisions of this Act; (c) determination of time and value of supply of goods or services or both; (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods or services or both; (f) whether applicant is required to be registered; (g) whether any particular thing done by the applicant with respect to any goods or serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said to have principally designed to carry persons or goods. Hence, this vehicle would merit classification under Chapter sub-heading 87.05. 2.6 Also, as per Explanatory Notes to Harmonized System of Nomenclature (HSN), the heading 8705 covers range of motor vehicles, specially construed or adapted, equipped with various devices that enabled them to perform certain non-transport functions, i.e. the primary function of a vehicle of this heading is not the transport of persons or goods. 2.7 The Applicant further state that the impugned vehicle is designed for specific garbage application. 2.8 The Customs Tariff is aligned, up to 6 digit level, with the Harmonized System of Nomenclature (HSN in short) issued by the World Customs Organization. The HSN Explanatory Notes, released by the World Customs Organization, aid in the interpretation of the Headings of the Customs Tariff and may be used as a safe guide for the same. 2.9 The Hon'ble CEGAT, New Delhi in the case of Maniar Co. Vs. CCE, Ahmedabad (2000 (119) ELT 418) has decided classification of similar use of vehicle under Chapter heading 87.05. In this case, while deciding the classification of Dumper placer, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertificate No AAPN0001F01 dated 15.09.2020. On enquiring with the applicant about the different dates shown in the application certificate, the applicant vide email dated 17-11-2021 clarified that the typo error in mentioning date of the Certificate issued by ARAI is mentioned as 15.01.2020 in Para 2.5 of Annexure 'A' of the ARA-01 application from instead of 15.09.2020. The certificate No. AAPN0001F01 dated 15.09.2020 in short mentions the name of Base Model as TATA ACE GOLD PETROL BS-VI and the type of vehicle as Goods Carrier having GVW 1615 Kg. Further on going through the layout of TATA ACE GOLD PETROL CAB CHASSIS BOX TIPPER it appears that the said vehicle can be used for transportation of any goods including goods in powder form. Chapter 8705 of GST Tariff is specified as below: 8705 SPECIAL PURPOSE MOTOR VEHICLES, OTHER THAN THOSE PRINCIPALLY DESIGNED FOR THE TRANSPORT OF PERSONS OR GOODS (FOR EXAMPLE, BREAKDOWN LORRIES, CRANE LORRIES, FIRE FIGHTING VEHICLES, CONCRETE-MIXERS LORRIES, SPRAYING LORRIES, MOBILE WORKSHOPS, MOBILE RADIOLOGICAL UNITS) In this case, the applicant has submitted Certificate No AAPN0001F01 dated 15.09.2020 issued by ARA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vehicles and defines special purpose vehicles as other than those principally designed for the transport of persons or goods. Few illustrative examples of vehicles which would be covered under this heading are also given in this sub-heading. These vehicles cover trucks used for cleaning streets, gutters, airfield runways etc. (sweepers, sprinklers, sprinkler-sweepers cesspool emptier), break-down lorries, crane lorries, fire fighting vehicles, concrete-mixers lorries, spraying lorries, mobile workshops, mobile radiological units etc. 5.3. Applicant further stated that the Garbage Tipper vehicles are specially / exclusively designed for garbage application and for use by Govt. Bodies. The Garbage Tipper vehicle enable access to small lanes for garbage collection for tipping the same in to a compactor or at dumping sites as decided by Govt. Bodies. This Garbage Tipper vehicle has 60:40/ 70:30 partition for segregation of DRY waste WET waste at source (while collecting it from lanes/houses) as per National Green Tribunal (in short NGT) guidelines. The bodies are designed with tarpaulin/ hard metallic cover to transfer garbage under covered condition as per NGT guidelines. Also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y designed for the transports or goods. From the above, it can be seen that the vehicle manufactured by the applicant is a goods carrier and cannot be termed as a special purpose vehicles as claimed by the applicant. In the tariff heading 8705, It is clearly shown that what could be the vehicles like Breakdown Lorries, Crane Lorries, Fire fighting Vehicles, Concrete Mixer Lorries, Spraying Lorries, Mobile Workshops, Mobile Radiological Units and Tata Ace Garbage Tipper vehicle cannot be compared with them or it can be termed as a similar vehicle. After perusal of above referred to Certificate dated 15/9/2020 it is seen that in the column of Type of vehicle it is mentioned as goods carrier . Thus, as per the certificate itself it is goods carrier. Thus the said vehicle would get covered under heading 87049090, after considering all the contentions and facts as available on record. The dealer has not produced details as to tonnage of vehicles, so this finding that it is covered by 87049090 is given on the best judgment basis. As shown in underlined portion above the applicant admitted that it can be used for transportation of goods. The starting words of Entry 8704 are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scussed in the body of the order, the questions are answered thus - Question a:- Whether Tata Ace Garbage Tipper vehicle with its variants for Garbage applications as specified in Annexure '2' (hereinafter called as Garbage Tipper vehicles), which will be manufactured exclusively keeping in view the requirements of National Green Tribunal (NGT in short), for supply to Municipal Corporations, Municipalities, Urban Development Bodies, Gram Panchayats and to contractors to whom operation maintenance contract has been awarded by these Govt, bodies under Swachh Bharat Mission, for collection and disposal of household garbage, are classifiable under Tariff Item 8705.90.00 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as Special Purpose Motor Vehicles or is classifiable under any other appropriate Tariff item? Answer:- Answer is in negative. Question b:- Whether the above-mentioned Garbage Tipper vehicles would attract IGST @ 18% under Sr. No. 401A under Schedule III of IGST Rates specified under Notification No. 1/2017-Integrated Tax (Rate), dated 28.06.2017, as amended? Answer:- Answer is in negative. Question c:- If answer to que ..... X X X X Extracts X X X X X X X X Extracts X X X X
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