Strict GST classification for electric vehicles and spare parts turns on express wording, not implication.

Electrically operated vehicles, including two- and three-wheeled variants, were treated as covered by the specified GST entry for electrically operated vehicles because the notification expressly listed such goods and their essential character as vehicles run solely on electrical energy was unchanged by the presence or absence of a fitted battery. Electrical and mechanical spare parts were not covered by that entry, as the taxing provision was construed strictly according to its language and no implication could add items not expressly mentioned. Those spare parts were therefore classified under the residuary schedule, while the vehicle classification claim succeeded only for the vehicles themselves.

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Issues: (i) Whether electrically operated vehicles, including two- and three-wheeled electric vehicles, fall under the specified GST entry for electrically operated vehicles; (ii) Whether electrical and mechanical spare parts of electric vehicles are covered by the same entry or fall under the residuary schedule.

Issue (i): Whether electrically operated vehicles, including two- and three-wheeled electric vehicles, fall under the specified GST entry for electrically operated vehicles.

Analysis: The applicable notification specifically enumerated electrically operated vehicles in Schedule I and treated vehicles run solely on electrical energy as covered goods. The ruling also relied on the classification rationale that the presence or absence of a fitted battery does not change the essential character of an electrically operated vehicle, and that such vehicles are classifiable under HSN 8703 for GST purposes.

Conclusion: This issue was answered in favour of the appellant, and electrically operated vehicles were held to be covered by the specified notification entry.

Issue (ii): Whether electrical and mechanical spare parts of electric vehicles are covered by the same entry or fall under the residuary schedule.

Analysis: The notified entry referred to electrically operated vehicles and did not expressly include spare parts. Applying the principle that a taxing entry must be interpreted as written, without additions or subtractions, the ruling held that spare parts cannot be brought within the vehicle entry by implication and must be classified under the residuary entry for goods not specifically covered in the relevant schedules.

Conclusion: This issue was decided against the appellant, and electrical and mechanical spare parts were held to fall under the residuary schedule entry.

Final Conclusion: The ruling granted classification relief for electrically operated vehicles, while denying the same treatment to electrical and mechanical spare parts, which were placed in the residuary category.

Ratio Decidendi: A taxing entry must be construed strictly according to its language, and goods not expressly covered by the specific description cannot be included by inference; where no specific description applies, the residuary entry governs.

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