Case Law Details
In re Apar Industries ltd. (GST AAR Gujarat)
Although there is an indirect reference to Entries No.250 and 252 of Schedule-I of the Notification No.01/2017-Integrated Tax(Rate) dated 28.06.2017 in para-2 which states that “GST is applicable @5% for goods intended for Warship application vide Sls.250 and 252 of Schedule-I of Notification No.01/2017-Integrated Tax(Rate) dated 28.06.2017”, there is no specific mention in the said certificate to the effect that the subject goods are integral parts of warship without which the warship would not come into existence or would not be completed. Also, as discussed earlier, there is no such provision envisaged in Notification No.01/2017-Integrated Tax(Rate) dated 28.06.2017, which states that the benefit of reduced rate of GST of 5% is available to goods used in a warship on the basis of a End Use Certificate issued by the Rear Admiral of the Navy stating that they are used as parts of a warship. Even otherwise, as discussed earlier, the essential and integral parts of a ship are Anchor, Bow, Bowsprit, Bow Thrusters, Fore and Aft, Ship’s Hull, Keel, Mast, Rigging, Rudder, Sails, Shrouds, Engines, gearbox, Propellor, Funnel, Navigation Bridge, Deck, Deck Crane, Forecastle etc. i.e. they are the parts so essential or integral to a ship or vessel without which a ship cannot be imagined to be a ship or to be in existence or be complete and marine pressure tight cables and non-pressure tight cables are excluded from this list. In view of the above facts and discussions, we find that the applicant has failed to prove their claim that the marine pressure tight cables and marine non-pressure tight cables manufactured and supplied by them are integral parts of warship without which the warship would not come into existence or would not be complete. We, therefore, conclude that the marine pressure tight cables and the marine non-pressure tight cables manufactured and supplied by the applicant to the Navy are not parts of the warship and hence the benefit of reduced rate of GST of 5% is not available to the applicant as per Notification No.01/2017-Integrated Tax(Rate) dated 28.06.2017.
Read AAAR Ruling : GST on Marine pressure & non-pressure tight cables supplied to Navy
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, GUJARAT
The applicant M/s. Apar Industries ltd. located at Plot No.157 to 163, 2827, 151 to 153, 164, Survey No.189/P1, GIDC Road, Tal.Umbergaon, Walsad (Dist.), Gujarat-396171 (having correspondence address at 12/13, Jyoti Wire House, 23A, Shah Industrial Estate, Off.Veera Desai Road, Andheri(West), Mumbai) are manufacturers and suppliers of various goods such as:(a) Transformer oils, white oil, industrial lubricating oils and specialities oils falling under the Customs/GST Tariff No.2710. (b) Aluminium conductors falling under Chapter Heading No.7614 of the Customs/GST Tariff Act. (c) Various grades of cables, including power/electric cables, house wire cables, marine/pressure tight cables and non-pressure tight cables and other cables, etc. falling under Chapter Heading No.8544 of the Customs Tariff Act.
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