AI Drafter 
TaxTMI 
TaxTMI 
2018 (5) TMI 699
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....engaged in the manufacture of Rubber Tyres, Tubes and Flaps which are taxable under GST law. 2. The present application is filed in respect of one of its products - "Tyres of kind used in Three-wheeled Electric rickshaws " (known in trade by the name of 'e-rickshaw tyres') which is specially manufactured to be used in modern day electric rickshaws (e-rickshaws) to bear vehicular load and help ease of movement of the e-rickshaws. 3. The applicant has been clearing the product under Chapter Heading No. 4011 of the Schedule to Customs Tariff Act, 1985 which covers 'New pneumatic tyres, of rubber Under GST regime, the same Chapter Heading No. 4011 of the Schedule to the Customs Tariff Act, 1975 attracts CGST at both, 2.5% and 14%. Thus, effective rate of GST on the said product can be either of 5% or 28%. 4. It is observed by the applicant that there is an anomaly in the Customs Tariff as well as in the GST Tariff Schedules in so far as 'e-rickshaw tyres' are concerned. The term 'e-rickshaw tyres' fails to find a mention in both, the Customs Tariff and the GST Rate Schedules. Furthermore, it is observed that Chapter Heading No. 4011 of the Customs T....
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....chedule-I of Notification No. 1/201 7-CentraI Tax (Rate). It shall be noted that 'Three-wheeled powered cycle rickshaw' was a vehicle that comprised of three wheels and was used to carry passengers or light goods over a short distance. It was a modification of the three wheeled-powered cycle rickshaws by adding a small battery to the same in order to ease the burden of the driver by using the mechanical energy generated as electrical energy to propel the rickshaws over short distances. It is understood that the legal principle of ejusdem generis was applied in the year 1976 so as to include 'three-wheeled powered cycle rickshaws' in the same heading with 'three-wheeled cycle rickshaws' primarily because of similar design and usage. 8. However, it is submitted that 'three-wheeled powered cycle rickshaws' are outdated in technology and have been effectively replaced by three-wheeled electronic rickshaws (i.e. e-rickshaws) which run on electrical energy stored in batteries and serve the same purpose as three-wheeled powered cycle rickshaws. In true sense, 'e-rickshaws' are an upgradation of the three-wheeled powered cycle rickshaw technology ....
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.... a. A supplier shall be liable to be registered under CGST Act in the State or Union Territory, from where he makes taxable supply of goods or services or both; b. If the aggregate turnover in the financial year exceeds rupees twenty lakh. A.5 The Applicant submits that as on date, it is registered in Maharashtra and also making taxable supplies of goods from the same to its customers located in State of Maharashtra. Further, the turnover of the Applicant exceeds rupees twenty lakhs in the financial year. Given this, it is submitted that Applicant clearly satisfies to be 'applicant' in terms of subsection (c) of the Section 95 of the CGST Act. A.6 That sub-section (I) of the Section 95 of the CGST Act defines the term 'advance ruling' as under:- "(a) "advance ruling" means a decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub-section (1) of section 100, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken b....
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....e concerned State or Union Authority Government under concerned State or Union Territory Goods and Service Tax Act, shall be the deemed to be the Advance Ruling Authority for the purpose of CGST Act. The Section 96 of the Maharashtra Goods and Service Tax Act, 2017, reads as under:- "SECTION 96 (1) The Government shall, by notification, constitute an Authority to be known as the Maharashtra Authority for Advance Ruling: Provided that the Government may, on the recommendation of the Council, notify any Authority located in another State to act as the Authority for the State. (2) The Authority shall consist of- (i) one member from amongst the officers of central tax; and (ii) one member from amongst the officers of State tax, to be appointed by the Central Government and the State Government respectively. (3) The qualifications, the method of appointment of the members and the terms and conditions of their services shall be such as may be prescribed. ...Emphasis Supplied A.11 The Applicant submits that in terms of the above referred section 96 of the Maharashtra Goods and Service Tax Act, 2017, the Government of Maharashtra has issued a No....
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.... Pneumatic tyres or inner tubes, of rubber, of a kind used on / in bicycles, cycle -rickshaws and three wheeled powered cycle rickshaws 190. 4011, 4013 Pneumatic Lyres or inner tubes, Of rubber, Of a kind used on / in bicycles, cycle -rickshaws and three wheeled powered cycle rickshaws 2.5% Chapter/ Heading/Sub- heading/Tariff item Description of Goods CGST Rate (%) SGST/ UTGST Rate (%) IGST Rate (%) Condition 4011 30 00 New pneumatic types, of rubber of a kind used on aircraft" 2.5 2.5 5 4011, 4013 Pneumatic tyres or inner tubes, of rubber, of a kind used on/ in bicycles, cycle-rickshaws and three wheeled powered cycle rickshaws 2.5 2.5 5 4011 Rear Tractor tyres and rear tractor tyre tubes 9 9 18 4011 70 00 Tyre for tractors 9 9 18 4011 New pneumatic tyres, rubber {other than of a kind used on/in bicycles, cycle-rickshaws and three wheeled powered cycle rickshaws: rear tractors tyres: and of a kind used on aircraft} 14 14 28 The dea....
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....y be mechanically propelled cycle rickshaw. Which may also be pedalled if any necessity arises for so doing" It clearly shows that the Tyres cleared by these manufacturers attracts a peak rate or 14% percent instead of 2.5% percent, as these Tyres and Tubes are meant for Electric Motor Vehicles (known as E-Rickshaw). The sizes of these tyres and tubes mentioned are also used widely in scooters and motorcycles. It is necessary to verify what duty these companies were paying in pre-GST era. In Chapter head 4011 and 4013, Pneumatic Tyres or Inner Tubes, of Rubber, of a kind used on/in Bicycles, Cycle Rickshaws and Three Wheeled Powered Cycle Rickshaws attract a GST Rate of 2.5% In Chapter head 4011, New Pneumatic Tyres of Rubber {Other than of a kind used on/in Bicycles, Cycle-Rickshaws and Three Wheeled Powered Cycle Rickshaws; and Rear Tractor Tyre} attracts a GST Rate of 14% To ascertain the GST Rates on tyres used on/ in E rickshaw, we have to find out what is the meaning of Powered Cycle Rickshaw and whether it is synonymous with E Rickshaw? The following are the history findings of term 'powered cycle rickshaw'. The term 'powered cycle ricksha....
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....e prescribed and shall be paid by the taxable person. Accordingly the State and central government have issued the notification for levy of tax. The provisions for implementing the CGST ACT and MGST ACT, 2017 are similar. 5.1 The relevant entries in the respective Schedules of Notification No. 1/2017-Central Tax (Rate) dated 28.6.2017, for the purpose of the impugned product in question, read as under: SI. No. Chapter Heading/ Sub-Heading Description of Goods Rate of Tax (GST) Prescribed Sch. for rate of tax (1) (2) (3) (4) 190. 4011,4013 Pneumatic tyres or inner tubes, of rubber, of a kind used on / in bicycles, cycle -rickshaws and three wheeled powered cycle rickshaws. 2.5% I. 46. 4011 New pneumatic tyres, of rubber [other than of a kind used on/in bicycles, cycle-rickshaws and three wheeled powered cycle rickshaws; and Rear Tractor tyres; and of a kind used on aircraft] 14% IV. 5.2 a) Three Wheeled Electric Motor Vehicle (known as E-Rickshaw in market) is a Motor Vehicle in Motor Vehicle Act also. It has to be registered with State Transport Authorit....
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.... = 1996 (3) TMI 555 - SUPREME COURT. Therefore, It is settled that Powered Cycle Rickshaw referred to in the Explanation would not cover an Auto Rickshaw and would only cover an ordinary Cycle Rickshaw to which a motor or petrol engine has been fitted. 5.3 We have carefully considered the notification issued for rate of tax, in order to determine the rate of MGST/CGST. The scheme of tax revealed that the GST is levied on supplies of goods, the description of which is specified in the corresponding entry in column (3) of the said Schedules. The description is provided as 'Pneumatic tyres or inner tubes, of rubber, of a kind used on / in bicycles, cycle -rickshaws and three wheeled powered cycle rickshaws." • On analysis of the schedule entry- 190, it is seen that the tyres of cycle or cycle rickshaw whether powered or not are covered only. It is clear that the rickshaw must be pedal driven. The term "Cycle rickshaw" connotes a pedal driven, human powered, single track vehicle, having three wheels attached to a frame. The vehicle is usually a tricycle, pedal-driven by a driver, though some are equipped with an electric motor to assist the driver. In common parlanc....
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....ns legis is ascertained with reference to the context, and by considering whether the word in question and the surrounding words are, in fact, ejusdem generis, and referable to the same subject-matter. The meaning of law can be collected by comparing one part with another and by viewing all the parts together as one in whole and not one part only by itself. If one goes by this settled principle of interpretation of statutes then one would find that the word is to be found in the company of the words "cycle rickshaws", "bicycle". The cycle rickshaws are commonly understood as rickshaws propelled by cycling. The cycle rickshaw cannot be termed as auto-rickshaw or e-rickshaw. • The Cycle rickshaw is cycle rickshaw as understood in common parlance. The word cycle-rickshaw will take colour from the word bicycle and the things are belonging to same genus. Considered from this angle, one has to reach to the conclusion that the e-rickshaw is not within the sweep of the word "bicycles" or "cycle Rickshaw" and also does not appear to be in consonance with the legislative intent. • The applicant has relied upon the various case laws. We have carefully gone through th....
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....he articles are in circulation and come to be described, then, there is no difficulty for statutory classification under a particular entry. In view of detailed discussions as above it is clear that when legislature has classified the product and put them under a different entries Entry 160 of schedule-I and Entry-46 of schedule-IV and being capable to be understood in common parlance as a different commercial commodity, the basis of the classification is not open to question. Moreover, the schedule entry 46 is very specific in nature and is considered for all pneumatic tyres, of rubber. The schedule entry is provided with the exclusion clause. The exclusion clause enlists very specific items only. As we have already seen that the impugned product is pneumatic tyre and also does not fit into exclusion clause namely [other than of a kind used on/in bicycles, cycle-rickshaws and three wheeled powered cycle rickshaws; and Rear Tractor tyres; and of a kind used on aircraft] of particular entry. Once the articles are in circulation and come to be described, then, there is no difficulty for statutory classification under a particular entry. Hence we are of opinion that there is no for....