The applicant sought clarification on the applicability of GST...

The applicant sought clarification on the applicability of GST rate under notification No. 1/2017-Central Tax (Rate) for imported goods/spares supplied on ships. The applicant claimed these goods are essential parts of the ship to make it seaworthy. However, the HSN explanatory notes of Chapter 89, under which the applicant wants the goods classified after import, exclude separately presented parts and accessories of vessels from this chapter. They are classified under appropriate headings elsewhere in the nomenclature. The CESTAT order cited by the applicant pertained to a different issue and is not tenable in the present dispute. The classification of the goods when supplied by the applicant after importation would remain the same as mentioned in the bill of entry filed before Customs, under the same chapter, heading, sub-heading, and tariff item on which IGST was discharged during import.

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