Case Law Details
In re Zentiva Private Limited (GST AAR Karnataka)
In a recent ruling by the Authority for Advance Ruling (AAR) Karnataka, Zentiva Private Limited sought clarity on GST rates for marine engines fitted to fishing vessels. The applicant subsequently withdrew their application before a final decision was reached.
Zentiva Private Limited, a proprietorship firm trading in marine engines, filed an online application under Section 97 of the CGST Act, 2017 and KGST Act, 2017. The firm contested the applicability of GST rates on marine engines for fishing vessels, citing a discrepancy between their charged rate (28% GST) and Kerala’s rate (5% GST based on self-declaration).
The AAR’s consideration included Circular No. 52/26/2018-GST, dated 9th August 2018, which outlines GST provisions for marine engines. Despite initial proceedings, the applicant opted to withdraw their application, as confirmed in an email dated 13th March 2024, wherein they requested withdrawal without submitting hard copies.
Consequently, the Authority for Advance Ruling, Karnataka, disposed of the application as withdrawn.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, KARNATAKA
ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017
& UNDER SECTION 98(4) OF THE KGST ACT, 2017
Sri. P. K. Raju, Prop. M/s. Spinster Outboards, Door No. 16, Grama Panchayath Building, N H 66, Maravanthe, Kundapura, Udupi – 576224, Karnataka having GSTIN 29A1JPR4293D 1ZV have filed an online application for Advance Ruling under Section 97 of CGST Act, 2017 and KGST Act 2017 read with Rule 104 of CGST Rules, 2017 and KGST Rules 2017.
2. The Applicant is a Proprietorship firm, engaged in the business of trading of outboard motors to unregistered fishermen. The applicant is charging 28% on the said motors whereas in Kerala state the said outboard motors are being sold on charging 5% GST on the basis of self-declaration.
3. The applicant, in view of the above, sought advance ruling in respect of the rate of GST applicable to ‘marine engine’, fitted to fishing vessel, in the light of the Circular No. 52/26/2018-GST, dated 9th August 2018.
4. The applicant had not submitted the hard copies of the instant application and on enquiry they informed through e-mail dated 13.03.2024 that they intend to withdraw the application and requested to permit them to withdraw the instant application.
In view of the above, we pass the following,
RULING
The application filed by the applicant for advance ruling is disposed off as withdrawn.
