In re M/s Kanam Industies (AAR Uttarakhand)
(a) What is the interpretation of the term three wheeled powered cycle Rickshaw as provided under Sl. No. 190 of the Schedule I to Tariff Notification.
Held- Three wheeled Powered Cycle Rickshaw would not cover an Auto Rickshaw and would only cover an ordinary Cycle Rickshaw to which a motor or petrol engine has been fitted.
(b) Is there any difference between an electric rickshaw operated by chargeable batteries (E-Rickshaw) and three wheeled powered cycle rickshaw provided under Tariff Notification.
Held- E-rickshaw and powered cycle rickshaw are not one and the same but two different items.
(c) Whether inner tube of butyl rubber used in e-rickshaw would fall within the meaning of term’-“three wheeled powered cycle rickshaw” and classification thereof.
Held- Tyres used in E-Rickshaw are not tyres of powered cycle rickshaw and hence they are required to be classified under Chapter Heading 4013 of GST Tariff, 2017 and attract 28% GST as on date.
FULL TEXT OF ADVANCE RULING
1. This is an application under Sub-Section (1) of Section 97 of the CGST/SGST Act, 2017 and the rules made thereunder filed by M/ s Kanam Indus:ries, NNIE-II, Mahuakhera Gunj, Kashipur seeking .an advance ruling on
(a) What is the interpretation of the term “three wheeled powered cycle rickshaw” as provided under Sl. No. 190 o fthe Schedule 1 to Tariff Notification.
(b) Is there any difference between an electric rickshaw operated by chargeable batteries (E-Rickshaw) and three wheeled powered cycle rickshaw provided under Tariff Notification
(c) Whether inner tubes of butyl rubber used in e-rickshaw would fall within the meaning of term’ “three wheeled powered cycle rickshaw” and classification thereof
2. Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub section (2) of section 97 or sub section (1) of section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant.
3. As per Section 97(2) (a) & (e) of CGST/SGST Act, 2017 the advance ruling can be given on “classification of any goods or services or both” and “determination of the liability to pay tax on any goods or services or both” respectively. In the present case applicant has requested for advance ruling in respect of classification and rate of applicable GST on product mentioned above. Therefore, in terms of said Section 97(2) of CGST/SGST Act, 2017, the present application is hereby admitted.
4. Report dated 08.02.2018 was also submitted by Joint Commissioner, SGST, Haidwani in which he reported that the “three wheeled powered cycle rickshaw” and “E-Rickshaw” are different and the product namely inner tubes of butyl rubber used in e-rickshaw would fall under HSN Code 4013 and accordingly attracts 18%, duty.
5. Personal hearing was held on 15.2.2018 and Shri Aishwarya Sharma, Advocate appeared for applicant. No body appeared from the side of Revenue for the hearing.
6. In the present application, applicant has requested for advance ruling on interpretation of the term “three wheeled powered cycle rickshaw” (b) difference between an electric rickshaw operated by chargeable batteries (E-Rickshaw) and three wheeled powered cycle rickshaw, if any and (c) classification of inner tubes of butyl rubber used in e-rickshaw
7. As per Notification No. 1/2017-Central Tax (Rate)dated 28th June, 2017, three wheeled powered cycle rickshaws are mentioned along with bicycles, rickshaws. The rate schedule is as under:
