End-use determines concessional GST on vessel parts used exclusively in fishing or floating vessels.

Marine propellers, rudder sets, stern tube sets, propeller shafts and M.S. shafts used exclusively as parts of fishing or floating vessels fall within Entry 252 of Schedule I, because the entry covers parts of goods under HSN headings 8901, 8902, 8904, 8905, 8906 and 8907 and fishing vessels are classifiable under HSN 8902. The concessional 5% rate applies when the end use is confined to covered vessels; if the goods are used for any other purpose, the normal rate applies.

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Issues: Whether marine propellers, rudder set, stern tube set, propeller shaft and M.S. shaft for couplings used as part of fishing or floating vessels are classifiable under Entry 252 of Schedule I and taxable at 5%.

Analysis: The ruling held that Entry 252 covers parts of goods of headings 8901, 8902, 8904, 8905, 8906 and 8907, and that fishing vessels fall under HSN 8902. The applicable rate depends on the nature of use of the commodities. Where the goods are used only as parts of fishing or floating vessels, they answer the description in Entry 252 and qualify for the concessional rate. If used for any other purpose, the normal rate would apply.

Conclusion: Such commodities, when used as part of fishing or floating vessels, are taxable at 5% under Entry 252 of Schedule I.

Ratio Decidendi: Parts used exclusively in fishing vessels or other covered vessels fall within the concessional entry applicable to parts of headings 8901, 8902, 8904, 8905, 8906 and 8907, and their tax rate is determined by end use.

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