2018 (11) TMI 282

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....n, Mr. Srihari, Mr. Shubham Mishra Applicant is a manufacturer of Marine propellers, Rudder set, Stern tube set, Propellers shaft, MS shaft for couplings used in fishing or floating vessels. Applicant requested advance ruling on the following: i) The tax rate of Marine propellers, Rudder set, Stern tube set, Propellers shaft, MS shaft for couplings. ii) The parts of fishing (floating vess....

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....able @5% GST. However there is no clarity on the tax rate applicable to the parts shipping vessels as the raw materials attract 18% tax. As per HSN 8902, fishing vessels, factory ships and other vessels for processing or preserving fishery products are taxable @5% GST. As per serial No.252 of 1^st schedule, parts of goods of heading 8902 are also taxable @5% GST. As there is specific inclusion ....

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....od. Therefore, the supplier who has undertaken the warranty replacement is not required to reverse the input tax credit on the parts / components replaced. Even though the raw materials consumed are attracting higher tax rate than the finished products or parts, input tax paid is eligible to avail as input tax credit subject to a condition that such goods or services or both are used or intende....