Case Law Details
In re KNK Karts (P) Limited (GST AAR Karnataka)
Amusement Park ride Karts cannot be classified as Motor Vehicle, will attract GST @ 18%
The AAR, Karnataka in the matter of M/s KNK Karts (P) Ltd [Advance Ruling No. KAR ADRG 20/2022 dated August 12, 2022] has held that the amusement park ride karts (Product) cannot be classified as Motor Vehicle and will attract GST @ 18% under HSN 9503 of the Customs Tariff Act, 1975 (Customs Tariff Act).
Facts:
M/s KNK Karts (“the Applicant”) has manufactured amusement park ride karts (“the Product”) and supply them for joy riding both for children and adults. The Product was neither roadworthy nor meant for transportation or carrying of passengers. The Automotive Research Association of India, an authority established to certify that the Product is not permitted on public roads and are not fit for certification and hence cannot be registered with the Regional Transport Authority (“the RTO”) as Motor vehicle. The Applicant were of the impression that the Product are classified under HSN 9503 of the Custom Tariff Act whereas the Central Excise Department insisted them to classify the Product under HSN 8703 of the Custom Tarrif Act and pay GST at the rate of 28% in terms of Notification No.1/2017-Central Tax -Rate dated June 28, 2017.
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