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TMI Blog2024 (9) TMI 1283X X X X Extracts X X X X X X X X Extracts X X X X ..... emarks A GPS Global Positioning System Used for establishing ship's latitude and longitude Is an essential part of ship and without it the ship would not be performing its essential function and therefore would be part of a ship. B Echo Sounder Echo Sounder Used to find depth under the sea Is an essential part of ship and without it the ship would not he performing its essential function and therefore would be part of a ship. C Radar Radio Detecting and Ranging Used to detect objects at sea Is an essential part of ship and without it the ship would not be performing its essential function and therefore would be part of a ship. D ECDIS Electronic Charts Display & Information System Used to show locations for navigation Is an essential part of ship and without it the ship would not be performing its essential function and therefore would be part of a ship. E GYRO Gyroscope Used for navigation Is an essential part of ship and without it the ship would not be performing its essential function and therefore would be part of a ship. f AIS Automatic Identification System Used for identifying other ships details Would be in the nature of an additional equipmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Fish Finder Used for higher level accuracy and clear fish shoal images Would be in the nature of an additional equipment and therefore cannot be considered as part of a ship. Q SONAR Sound Navigation and Ranging Used for searching underwater fishing Would be in the nature of an additional equipment and therefore cannot be considered as part of a ship. R LSA/FF Life saving/Firefighting Appliances Used for safety of crew, vessel and passengers Would be in the nature of an additional equipment and therefore cannot be considered as part of a ship. S BANWAS Bridge Navigation Watch Alarm System The bridge is manned at sea during voyage, else alarm is issued by the unit for safety of ship Is an essential part of ship and without it the ship would not be performing its essential function and therefore would be part of a ship T SART Search and Rescue Transponder Used to assist Coast Guard in search and rescue operations Would be in the nature of an additional equipment and therefore cannot be considered as part of a ship. U Anemometer Anemometer Used to calculate speed and direction of wind Would be in the nature of an additional equipment and therefore cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntry no. 252 of notification No. 1/2017-Central Tax (Rate) which specifically covers parts of goods of various types of the ships and vessels covered under headings 8901,8902, 8904, 8905, 8906, 8907; * that they are selling equipment and parts/spares of critical nature and are mandated by IMO (International Maritime Organization), which are essential to establish the sea worthiness of a ship and therefore cannot be simply regarded as "spares" or equipment; * that in terms of explanation to notification No. 01/2017-CGST dated 27.06.2017 the classification of goods should be as per the rules of classification enshrined in the Customs Act, 1962; * that they wish to rely on rule 3 (a) of the General Rules for Interpretation [GRI] (inadvertently mentioned as Customs Valuation Rules by the applicant) to argue that the heading which provides the most specific description shall be preferred to headings providing a more general description; * the meaning of the term "spares" incorporates a wide ambit of products and would lead to a generic classification of goods, while on the other hand the classification as parts of the ship, would be more specific and could be attributed as the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that they did not wish to attend the hearing and requested to pronounce the ruling on the basis of earlier submissions and hearing. Discussion and findings 12. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act. 13. We have considered the submissions made by the applicant in their application for advance ruling as well as the submissions made during the course of personal hearing. We have also considered the issue involved, the relevant facts & the applicant's submission/interpretation of law in respect of question on which the advance ruling is sought. 14. The relevant extracts of the Customs Tariff Act, 1975, HSN, notification, etc., is reproduced below for ease of reference v/z * Notification No. 1/2017-Central fax dated 28.6.2017 Schedule I-2.5% S.No. Chapter/Heading Sub-heading /Tariff item Description of Goods (1) (2) (3) 252. Any chapter Parts of goods of headings 8901, 8902, 8904, 8905, 8906, 890 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of rule 3. 3. When by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:- (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (a), sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f head as mentioned in the import documents, the applicant is before this Authority primarily on the ground that his customers are of the opinion that notwithstanding the classification of the goods during the course of import, the said goods when supplied to these customers would fall within the ambit of chapter heading 8901, 8902, 8904, 8905, 8906 & 8907 and thereby be eligible for benefit of Sr. No. 252 of notification No. 1/2017-CT (R) dated 28.6.2017. 16. The applicant in Annexure-2, paragraph 4, has provided an example in respect of the imported product viz "Standard Solas Model", wherein the goods are classified under chapter heading 8479 as 'ship spares' and he discharges GST on the said supply @ 18%. further, vide their email dated 29.7.2024, they have enclosed certain bills of entry, the details of which are as under viz Sr No. Bill of entry number and date Item description Customs Tariff Item 1. CBEXIV-BOM-2024-2025-1006-10184 did 10.6.24 AIS (SI-70A) Without VHF' Antenna Cable (Transceiver) 85256000 2. 4408080 dtd 09.7.24 Ship Spar Radar 85261000 Ship Spare MF/HF 85256000 Ship Spare AIS 85256000 Ship Spare Marine Passive Antenna 85291029 Ship Spare ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Customs Tariff Act, 1975, in terms of explanation (iii) and (iv) of notification No. 1/2017-CTR dated 28.6.2017; [c] that there is no change in the character of the goods supplied by the applicant to the one imported. 21. Our aforementioned finding is substantiated by the below mentioned judgements viz * M/s. Ashwani Homeo Pharmacy [2023 LiveLaw (SC) 397] CA No. 9525/2018, wherein the Hon'ble Supreme Court held as follows : 31.........The applicable principles, as noticed from the decisions in BPL Pharmaceuticals and Vicco Laboratories (supra) remain that change of classification cannot be countenanced merely on the ground of coming into force of different tax structure without showing that the product has changed its character. * Pooja Hardware Pvt. Ltd. [2019 (365) ELT 816 (Tri-Mum), wherein the Hon'ble Tribunal held as follows: 2. Brief facts of the case are that M/s. Pooja Hardware Pvt. Ltd. (for short, the appellant company) is the importer of aluminium profiles and other hardware materials and imports the said goods mostly from China and Europe, through the Nhava Sheva Port and the Air Cargo Complex, Mumbai. Based on specific intelligence that the said appellant h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating structures even if they are clearly identifiable as such. Such parts and accessories are classified in the appropriate headings elsewhere in the nomenclature. The relevant portion of the explanatory notes is already reproduced in paragraph supra. 23. The applicant has relied upon the advance ruling dated 18.7.2018 in the case of M/s. A.S. Moloobhoy Private Limited ARA No. GST-ARA-14/2018-19/B-71 during the course of personal hearing. The reliance on the said ruling is not tenable since it is applicable only to M/s. A.S. Moloobhoy Private Limited in terms of section 103 of the CGST Act, 2017. We further find that the applicant in his application has relied upon the order dated 26.4.2019 of the Hon'ble Supreme Court in the case of M/s Chidambaram Ship Care (P) Ltd and Others Civil Appeal No. 3115-3117/2015. On going through the order, it is observed that the Hon'ble SC dismissed the departmental appeal holding that they found no reason to interfere with the Order of the Hon'ble CESTAT dated 10.3.2005, in Final Order No. 448-450/2005 in Appeal No. C/370-372/2002-MAS. The Hon'ble CESTAT in its order dated 10.3.2005, had framed the question to be decided as to whether the subject ..... X X X X Extracts X X X X X X X X Extracts X X X X
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