In re Tata Motors Limited (GST AAR Maharashtra)
Question 1.1 Whether Tata Harrier vehicle, which has following specifications, is classifiable under Tariff Item 8703 32 91 or 8703 32 99 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975)?
Answer:- In view of the above discussions Tata Harrier vehicle, is classifiable under Tariff Item 8703 32 91 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975)
Question 1.2 Under Sr. 52B of Notification No. 1/2017-Compensation Cess (Rate) dated 28.06.2017 as amended, SUV has been defined as under:
| S.No. | Chapter/ Heading,Sub heading Tariff item | Description of Goods | Rate of goods and
services tax |
| (1) | (2) | (3) | (4) |
| 52B. | 8703 | Motor vehicles of engine capacity exceeding 1500 cc, popularly known as Sports Utility Vehicles (SUVs) including utility vehicles. Explanation. – For the purpose of this entry,
SUV includes a motor vehicle of length |
22% |
For a motor vehicle to get covered under above entry as SUV/ UV, whether it has to satisfy only the conditions mentioned in main clause i.e. engine capacity above 1500 cc and popularly known as SUV/ UV or in addition, it has to also satisfy the conditions mentioned in Explanation” i.e. length exceeding 4000 mm and ground clearance of 170 mm and above? In short, if the vehicle satisfies only the conditions mentioned in main clause but is not satisfying any one or all of the conditions mentioned in Explanation’, whether it would still be covered under
Answer :- Entry at Sr. No. 52B of Notification No. 1/2017-Compensation Cess (Rate) dated 28.06.2017 as amended?
To be covered under Sr. No. 52B of Notification No. 1/2017-Compensation Cess (Rate) dated 28.06.2017, the vehicle must satisfy the conditions mentioned in main clause as well as the conditions mentioned in the Explanation
Question 1.3 For the purpose of Cess @ 22% under Sr. No: 52B of Notification No. 1/2017 Compensation Cess (Rate) dated 28.06.2017 as amended, whether the ground clearance of the vehicle is to be considered in laden condition or in unladen condition?
Answer :- The ground clearance given in the Notification must be arrived in unladen condition.
Question 1.4 Whether Tata Harrier vehicle whose ground clearance in unladen condition is 205 mm and in laden condition is 160 mm, would fall under Sr. No. 52B of the Notification No. 1/2017-Compensation Cess. (Rate) dated 28.06.2017 as amended?
Answer :- Answered in the positive.
Question 1.5 Whether GST Compensation Cess @ 22% under Sr. No. 52B of Notification No. 1/2017-Compensation Cess (Rate) dated 28.06.2017 as amended, will be applicable to Tata Harrier vehicle?
Answer :- Answered in the positive.
Question 1.6 Vehicle whose ground clearance in unladen condition is more than 170 mm but below 170mm in laden condition, whether will get covered under Sr. No. 52B of Notification No. 1/2017-Compensation Cess (Rate) dated 28.06.2017?
Answer :- In view of the discussions made above, we would say that to get covered under Sr. No. 52B of Notification No. 1/2017-Compensation. Cess (Rate) dated 28.06.2017, the ground clearance should be 170 mm or above in unladen condition.
Also read AAAR Order:- For levy of cess ground clearance of vehicle is to be considered in laden condition only
