TMI Blog2023 (7) TMI 753X X X X Extracts X X X X X X X X Extracts X X X X ..... on No. 01/2017 Central Tax (Rate) dated 28.06,2017. Ships, boats and floating structures 'are classifiable under Chapter 89 of the Customs Tariff Act, 1975. CTH 8901 covers Cruise ships, excursion boats, ferry boats, cargo ships, barges and similar vessels for the transport of persons or goods; 8902 covers Fishing vessels, factory ships and other vessels for processing or preserving fishery; 8904 covers Tugs and pusher crafts; 8905 covers Light vessels, fire-floats, dredgers, floating cranes and other vessels; 8906 covers other vessels including warships and lifeboats other than rowing boats and 8907 covers other floating structures and arc liable to GST at the rate of 5% as per entries at SI. Nos. 246, 247, 248, 249, 250 and 251 respectively of Schedule I of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017. Further as per entry at Sl. No. 252 of Schedule I of Notification No 1/2017-CT (Rate) dated 28.06.2017 the parts of goods of Headings 8901, 8902, 8904, 8905, 8906, and 8907 falling under any chapter attracts GST at the rate of 5%. Whether the replacement of parts without consideration during the warranty period, constitutes a supply under the CGST Act, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 8901, 8902, 8904, 8905, 8906 or 8907 the same is liable to GST at the rate of 5% as per the said entry of the notification. - KER/15/2023 - - - Dated:- 3-3-2023 - DR. S.L. SREEPARVATHY, IRS SHRI ABRAHAM RENN S., IRS, MEMBER Authorized Representative : Mr. S. Radhakrishnan, Proprietor 1. Mr. S. Radhakrishnan, Proprietor of M/s. Bright Metal Works (hereinafter referred to as the applicant), is engaged in the manufacturing of marine propellers, stem tube set, rudder sets, SS propeller shafts, MS shafts for coupling, intermediate shafts and cutlass rubber bushes used in fishing / floating vessels. 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 except for certain provisions Accordingly, a reference hereinafter to the provisions of the CGST Act, Rules, and the notifications issued there under shall include a reference to the corresponding provisions of the KSGST Act, Rules, and the notifications issued there under. 3. The applicant requested Advance Ruling on the fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he application was forwarded to the jurisdictional officer as per provisions of subsection (1) of Section 98 of the CGST/SGST Act. The Jurisdictional officer has reported that the questions raised in the advance ruling application is not pending or decided in that office in any proceedings under the provisions of the GST Act. 6. Personal Hearing: 6.1. The applicant was granted an opportunity for a personal hearing on 20.07.2022 via virtual mode. Sri. Jayakrishnan, the Authorized Representative of the applicant attended the persona hearing. The representative reiterated the contentions made in the application. 7. Discussion and Findings: 7.1. The issue was examined in detail. The application is admissible as per subsection (2) of Section 97. The issue raised before the authority is the classification and rate of GST of marine propellers, stern tube sets, rudder sets, SS propeller shafts, MS shafts for couplings and intermediate and cutlass rubber bushes manufactured /supplied by them for use in fishing / floating vessels. The contention of the applicant is that the above goods are supplied by them for use in fishing / floating vessels falling under Customs Tariff Hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le I of the said, notification. The Marine engine for a fishing vessel falling under Tariff item 8408 10 93 of the Customs Tariff Act, 1975 would attract a GST rate of 5% by virtue of Sl 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. Therefore, If the Marine Propellers, Rudder Set, Stern Tube Set, SS Propeller Shaft and MS Shaft are supplied for use as part of fishing vessels falling under Customs Tariff Headings 8902 or vessels falling under Customs Tariff Headings 8901, 8904, 8905, 8906 and 8907 will attract GST at the rate of 5% as per the entry at Sl. No. 252 of Schedule I of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017. If it is supplied for use other than as parts of vessels as stated above, GST at the rate applicable under the Respective Customs Tariff Headings in which they are classified will apply. 7.5. The next question to be answered is whether the replacement of parts without consideration during the warranty period, const ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cutlass Rubber Bush is supplied for use as parts of goods of Heading 8901, 8902, 8904, 8905, 8906 or 8907 the same is liable to GST at the rate of 5% as per the said entry of the notification. RULING In view of the observations stated above, the following rulings are issued: Question 1: The tax rate of marine propellers, stem tube set, rudder set, SS propellers shaft, MS shaft for couplings, and intermediate cutlass rubber bushes. Ruling : The tax rate of marine propellers, stem tube set, rudder set, SS propellers shaft, MS shaft for couplings and intermediate and cutlass rubber bushes when supplied for use as part of goods of Heading 8901, 8902, 8904, 8905, 8906 or 8907 attracts GST at the rate of 5% [CGST - 2.5% + SGST - 2.5%] as per entry at SI. No. 252 of Schedule I of Notification No, 01/2017 Central Tax (Rate) dated 28.06.2017. Question 2: The parts of fishing / floating vessels come under HSN 8902. It is requested to know whether all parts of fishing / floating vessels come under SI. No. 252 of the 1st schedule or Sl. No. 371 of the 3rd Schedule? Ruling : The goods falling under any chapter when supplied for use as parts of fishing or floating ve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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