In re Tata Motors Limited (GST AAR Maharashtra)
Question a:- Whether Tata Ace Garbage Tipper vehicle with its variants for Garbage applications as specified in Annexure ‘2’ (hereinafter called as Garbage Tipper vehicles), which will be manufactured exclusively keeping in view the requirements of National Green Tribunal (NGT in short), for supply to Municipal Corporations, Municipalities, Urban Development Bodies, Gram Panchayats and to contractors to whom operation & maintenance contract has been awarded by these Govt, bodies under Swachh Bharat Mission, for collection and disposal of household garbage, are classifiable under Tariff Item 8705.90.00 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as Special Purpose Motor Vehicles or is classifiable under any other appropriate Tariff item?
Answer:- Answer is in negative.
Question b:- Whether the above-mentioned Garbage Tipper vehicles would attract IGST @ 18% under Sr. No. 401A under Schedule III of IGST Rates specified under Notification No. 1/2017-Integrated Tax (Rate), dated 28.06.2017, as amended?
Answer:- Answer is in negative.
Question c:- If answer to question (b) above is in negative, what IGST rate would be applicable on the above-mentioned Garbage Tipper vehicles?
Answer:- IGST @ 28%.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, MAHARASHTRA
PROCEEDINGS
(under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act” respectively ] by M/s. Tata Motors Limited, the applicant, seeking an advance ruling in respect of the following questions.-
a. Whether Tata Ace Garbage Tipper vehicle with its variants for Garbage applications as specified in Annexure 2′ (hereinafter called as Garbage Tipper vehicles), which will be manufactured exclusively keeping in view the requirements of National Green Tribunal (NGT in short), for supply to Municipal Corporations, Municipalities, Urban Development Bodies, Gram Panchayats and to contractors to whom operation & maintenance contract has been awarded by these Govt, bodies under Swachh Bharat Mission, for collection and disposal of household garbage, are classifiable under Tariff Item 8705.90.00 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as Special Purpose Motor Vehicles or is classifiable under any other appropriate Tariff item?
b. Whether the above mentioned Garbage Tipper vehicles would attract IGST @ 18% under Sr. No. 401A under Schedule III of IGST Rates specified under Notification No. 1/2017-lntegrated Tax (Rate), dated 28.06.2017, as amended?
c. If answer to question (b) above is in negative, what IGST rate would be applicable on the above mentioned Garbage Tipper vehicles?
At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression ‘GST Act’ would mean CGST Act and MGST Act.
2. FACTS AND CONTENTION – AS PER THE APPLICANT:
The submissions, as reproduced verbatim, could be seen thus-
2.1 The Applicant is in the business of manufacturing and selling of vehicles, chassis for vehicles and parts thereof. The Applicant manufacture commercial vehicles as well as passenger vehicles.
2.2 The Applicant is planning to manufacture Tata Ace Garbage Tipper vehicles & its variants (hereinafter referred to as Garbage Tipper vehicle), which will be supplied to Municipal Corporations, Municipalities, Urban Development Bodies, Gram Panchayats and to contractors to whom operation & maintenance contract has been awarded by these Govt, bodies (hereinafter referred to as Govt. Bodies) under Swachh Bharat Mission for collection and disposal of household garbage. The Garbage Tipper vehicle is specially designed in such a way to enable access to small lanes for garbage collection for tipping the same in to a compactor or at dumping sites as decided by Govt, customers.
2.3 This Garbage Tipper vehicle has 60:40/ 70:30 partition for segregation of DRY waste & WET waste at source (while collecting it from lanes/houses) as per National Green Tribunal (in short NGT) guidelines. The bodies are designed with tarpaulin/ hard metallic cover to transfer garbage under covered condition as per NGT guidelines.
2.4 The Garbage Tipper vehicle has exclusive use of collection of garbage and is also exclusively sold to Govt. Bodies.
2.5 The Automotive Research Association of India (ARAI in short) has issued Certificate No. AAPN001 F001 dated 15.01.2020 for chassis of Tata Ace Garbage Tipper vehicles wherein various applications / variants of these vehicles are certified. A copy of the said Certificate is enclosed & marked as Annexure ‘3’.
2.6 In First Schedule to the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as First Schedule), in Chapter Heading 8705, special purpose motor vehicles have been specified as below: “8705 Special purpose motor vehicles, other than those principally designed for the transport of persons or goods (for example, breakdown lorries, crane lorries, fire fighting vehicles, concrete mixers lorries, spraying lorries, mobile workshops, mobile radiological units)
