Case Law Details
In re Bharat Dynamics Limited (GST AAR Andhra Pradesh)
Whether the Submarine Fired Decoy System (SFDS) supplied by the applicant is classifiable as ‘parts of submarine’ under Chapter Heading 8906 and, therefore, attract a GST rate of five (5%) by virtue of entry no. 252 of Schedule I in Notification No. 1/2017-Integrated Tax (Rate) dated 28.07.2017 ?
The issue at hand is to examine whether the Submarine Fired Decoy System (SFDS) proposed to be supplied by the applicant is classifiable as ‘parts of submarine under Chapter Heading 8906 and, therefore, attract a GST rate of 5% by virtue of entry no.252 of Schedule I in Notification No. 1/2017-Integrated Tax (Rate) dated 28.07.2017 or not.
The proposed supply of goods by the applicant, i.e., Submarine Fired Decoy System (SFDS) is an anti-torpedo defence system. Now we examine the applicant’s claim that the SFDS, being an essential and requisite component of the warship falls under chapter heading 8906.
Heading 8906 constitutes all kinds of structures that make any floating vessel but not of a particular kind. All the assembled, unassembled, or disassembled structures which are integral and essential to the making of a vessel fall in this category.
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