In re Apar Industries Ltd. (GST AAAR Gujarat)
Marine pressure tight cables and non-pressure tight cables manufactured and supplied by the applicant to the Indian Navy are essential and integral parts of the submarine warship and hence the benefit of reduced rate of GST of 5% is available to the appellant as per Sr. No. 252 of Notification No.01/2017-Integrated Tax (Rate) dated 28th June, 2017.
The appellant M/s. Apar Industries limited, Valsad is eligible to avail the benefit of GST @5% applicable as per Entries 252 of Schedule-I of Notification No.01/2017-Integrated Tax (Rate) dated 28th June, 2017 for the reasons discussed hereinabove
FULL TEXT OF THE ORDER OF AUTHORITY OF APPELLATE ADVANCE RULING, GUJARAT
At the outset we would like to make it clear that the provisions of CGST Act, 2017 and SGST Act, 2017 are in pari materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the SGST Act.
2. The present appeal has been filed under Section 100 of the Central Goods and Services Tax Act, 2017 and Gujarat Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act, 2017 and SGST Act, 2017) by M/s. Apar Industries Ltd. (hereinafter referred to as Appellant) against the Advance Ruling No. GUJ/GAAR/R/91/2020 dated 17.09.2020.
3. The applicant first filed the application for Adavance Ruling with Gujarat Authority of Advance Ruling where in stated that they are engaged in the manufacture and supply of various goods such as: (a) Transformer oils, white oil, industrial lubricating oils and specialties 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.
4. The applicant has submitted that they have received orders and are expecting future orders from the Defence Machinery Design Establishment (DMDE), Department of Defence Research and Development under the Ministry of Defence, Government of India for the supply of Marine-pressure tight and Non-Pressure tight cables, specially made and designed for use in the warship as ‘parts’ of warship; that these cables are though universally classified under Tariff Heading No.8544, but made and designed for use in Warship as it’s integral parts, without which warship cannot function and cannot be treated as complete in all respects and at the same time the same is capable of being separated from warship for repairs and replacement. The Rear Admiral of the Indian Navy, an officer equivalent in rank to the Joint Secretary of the GOI, has issued a Certificate of End User, vide F.No.HLC/85/PT-10 Cables (32 Types)/S4” dated 10.06.2019, to that effect, clearly showing therein the use of cables in warship application and applicability of GST@5%.
5. The applicant has claimed that supply of Marine-pressure tight and Non-Pressure tight cables, specially made and designed for use in the warship as ‘parts’ of warship are essential parts of warship and liable for GST @ 5% in terms of Sr. No. 252 of Notification No. 01/2017-CT (rate) dated 28.06.2017. Sr. No. 252 of Notification No. 01/2017-CT (rate) dated 28.06.2017 is read as under:
