In re Shandong Heavy Industry India Pvt. Ltd (GST AAR Maharashtra)
Q.A Whether the classification of Marine Diesel Engine falling under TSH 8408 of Customs Tariff Act, 1975 as adopted to GST attracting 28% of IGST (14% CGST + 14% SGST) as per Schedule IV (Sr. No. 115) of Notification No. 01/2017 – Central Tax (Rate) dated 28.06.2017 is correct or not?
Answer:- Answered in the affirmative
Q B. Whether the classification of Gear Box falling under TSH 8483 of Customs Tariff Act, 1975 as adopted to GST attracting 28% of IGST (14% CGST + 14% SGST) as per Schedule IV (Sr. No. 135) of Notification No. 01/2017 – Central Tax (Rate) dated 28.06.2017 is correct or not?
Answer:- Answered in the affirmative.
Q.C. Whether the goods falling under TSH 8408, 8409 and 8483 of Customs Tariff Act, 1975 as adopted to GST can be treated as ‘parts of heading of 8902, 8904, 8905, 8906 and 8907’ attracting 5% of IGST (2.5% CGST+ 2.5% SGST) as per Schedule I (Sr. No. 252) of Notification No. 01/2017 – Central Tax (Rate) dated 28.06.2017 or not?
Answer:- Answered in the affirmative, subject to these goods, marine Engines and Gear Boxes are used in goods falling under Headings 8901, 8902, 8904, 8905, 8906 and 8907 of the GST Tariff Act, 2017. However if the said goods are used for some other purpose, then the tax rate as applicable to the TSH under GST Tariff would apply.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, MAHARASHTRA
PROCEEDINGS
(under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by Shandong Heavy Industry India Pvt. Ltd, the applicant, seeking an advance ruling in respect of the following questions.
A. Whether the classification of Marine Diesel Engine falling under TSH 8408 of Customs Tariff Act, 1975 as adopted to GST attracting 28% of IGST (14% CGST + 14% SGST) as per Schedule IV (Sr. No. 115) of Notification No. 01/2017 – Central Tax (Rate) dated 28.06.2017 is correct or not?
B. Whether the classification of Gear Box falling under TSH 8483 of Customs Tariff Act, 1975 as adopted to GST attracting 28% of IGST (14% CGST + 14% SGST) as per Schedule IV (Sr. No. 135) of Notification No. 01/2017 – Central Tax (Rate) dated 28.06.2017 is correct or not.
C. Whether the goods falling under TSH 8408, 8409 and 8483 of Customs Tariff Act, 1975 as adopted to GST can be treated as ‘parts of heading of 8902, 8904, 8905, 8906 and 8907’ attracting 5% of IGST (2.5% CGST+ 2.5% SGST) as per Schedule I (Sr. No. 252) of Notification No. 01/2017 – Central Tax (Rate) dated 28.06.2017 or not?
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 such 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, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the “GST Act”.
2. FACTS AND CONTENTION – AS PER THE APPLICANT
The submission (Brief facts of the case), as reproduced verbatim, could be seen thus –
Description of Activity in which the Advance Ruling is sought
a. The applicant is engaged in assembly and testing of Marine Diesel Engines and making supply to various dealers and shipyard manufacturers falling under TSH 8408.
b. The applicant is also engaged in Importing Marine Diesel Engines (TSH 8408) for making supply as such to various dealers and shipyard manufacturers and engaged in importing parts required for assembly and testing of Marine Diesel Engine (TSH 8409) for making further supplies as well as for consumption assembly of Marine Diesel Engine as mentioned in (a) (supra).
c. The applicant is also engaged in Import of Gear Box and making supply as such to various dealers and shipyard manufacturers falling under TSH 8483.
STATEMENT OF RELEVANT FACTS
1. M/s Shandong Heavy Industry India Private Limited (Hereinafter referred as ‘The Applicant’) is engaged in supply of WEICHAI diesel engine range includes 15-2250 KVA for G-Drive applications, 30-1650 hp range for marine propulsion, auxiliary and commercial marine applications for various vessel types. (The leaf-let of the applicant and detailed specifications of six different marine engines are enclosed herewith and marked asAnnexure – A collectively).
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