TaxTMI 
TaxTMI 
2021 (8) TMI 734
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....651L1ZT. They are engaged in the business of manufacture and supply of Garbage Compactors and Hook Loaders which are used in loading, collection and disposal of garbage/waste/residue from various locations across the city to specific garbage pits. The applicant has preferred an application seeking advance ruling on the following question: Whether the Garbage Compactor and Hook Loader/ Garbage Tipper manufactured by the applicant can be classified under Chapter Heading 8705 (Special purpose motor vehicles other than those principally designed for transport of persons or goods) attracting IGST at 18% in terms of Sl.No.401A of Schedule III of Notification No.01/2017 Integrated Tax (Rate) dated 28.06.2017 and CGST and SGST at the rate of 9% respectively in terms of the corresponding rate notification? The Applicant has submitted the copy of application in Form GST ARA - 01 and also submitted a copy of Challan evidencing payment of application fees of Rs. 5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. 2.1 The Applicant has stated that they are engaged in manufacture and sale of commercial motor vehicles such as buses, trucks, light veh....
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....y that it eliminates spillage of waste on the roads. The Garbage Compactor vehicle manufactured by them is capable of handling bins as per international standards and mechanizes the bin lifting arrangement which provides ease in the daily operations. The major consumers who purchase the garbage compactors are municipal corporations and other government agencies who use the vehicles for collection and disposal of waste. 2.4 The applicant has submitted that Hook Loader/Garbage Tipper is a solid waste collection vehicle specially designed to make the task of garbage collection effective and efficient. It is generally used to collect garbage from door to door. It is offered as an automated hydraulic mechanism to unload the garbage into the yards; that the garbage tipper is of two different types namely, (i) Open Garbage Tipper, (ii) Closed garbage tipper which comes with two different sections to carry dry and wet garbage separately; that once the garbage is collected, same is transported to the dumping yards and then is unloaded with the automatic hydraulic mechanism; that the key benefits are that the Tipper is a compact vehicle which is effective in door to door....
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....ualifies as 'Goods'. The applicant has also referred to the decision of the Hon'ble Supreme Court in UOI v Indian Aluminium Co. Ltd. 1995 (77) E.L.T. 268 (SC) in determining whether aluminium dross and skimmings are excisable goods. The Hon'ble Supreme Court held that everything, however which is sold is not necessarily a marketable commodity as known to commerce and which, it may be worthwhile to trade in. It was concluded that Proviso to Rule 56A was not applicable as aluminium dross and skimmings are not excisable goods. 2.7 The applicant has submitted that the garbage compactors are used for collection of garbage and their transportation to the garbage pits. In commercial parlance, garbage/refuse is not known in the market as articles having an intrinsic value which are brought and sold as such. This averment is further corroborated by the fact that the garbage once loaded is made to undergo the compaction process which basically reduces the volume of the garbage loaded on to the vehicle. Thus, the garbage does not have an inherent marketable characteristic of its own. In view of the above facts, the applicant is of the understanding that Garbage Compactor Ve....
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....erms of Sl.No.401A of Schedule III of IGST rate notification. However, different GST rates are being charged by different suppliers which are resulting in distortion of the market. Hence, they have sought the authority to clarify the issue of classification and the rate of GST payable for supply of Garbage Compactor Vehicle. 3.1 Due to the prevailing PANDEMIC situation and in order not to delay the proceedings, the applicant was addressed through the Email Address mentioned in the application to seek their willingness to participate in a virtual Personal Hearing in Digital media vide e-mail dated 15.02.2021. The applicant consented and the hearing for admission of the application was held on 19.02.2021. The authorized representative appeared for the hearing and reiterated the written submissions filed along with the application and requested classification of Garbage Compactor and Hook Loader, whether classifiable under Heading CTH 8794 or CTH 8705. The representative stated that both these vehicles are designed only to collect and transfer garbage and garbage is not goods. The Authorised representative furnished a paper book containing the Statutory Provisions, Case Laws and th....
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....omplete solution towards the clean Indian mission of 'Swach Bharat Abhiyan'. Garbage Tipper Automated unloading: - The Garbage Tipper vehicle also has an automated unloading mechanism. This is to ensure that there is no direct human contact with the garbage, As stated supra, this is a distinct feature which is generally not available in a generic goods transport vehicle. This also is a unique feature which helps in no contact dumping of garbage during the unprecedent time of the pandemic. Avoids Spillage of waste on roads: - The Closed Garbage Tipper is designed in such a way that it avoids spillage on roads. This vehicle has been offered as a complete solution towards the clean Indian mission of 'Swach Bharat Abhiyan'. Separate Compartments for dry and wet garbage: - The Closed Garbage Tipper comes with separate compartments for dry and wet garbage. However applicant did not furnish copies of sample invoices called for and a letter to that effect was issued on 19.03.2021. In response to the letter, applicant submitted that under the erstwhile regime, there was no clearance of the Garbage compactor and the Tipper and 3 sample invoices of GST issued by the....
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.... of facts, supporting documents filed by the Applicant, all the additional submissions made during the hearing and thereafter and the submissions of the Jurisdictional authorities. The applicant is engaged in the manufacture and sale of commercial motor vehicles such as buses, trucks, light vehicles and parts thereof. They also manufacture and sell special purpose vehicles such as road sweeper truck, suction-cum-jetting machine, hook loader/garbage tipper and refuse/garbage compactor vehicle. Now the applicant has applied for ruling on the following question: - Whether Garbage compactor and hook loader supplied by the applicant is to be classified under Chapter Heading 8705 (special purpose motor vehicles other than those designed for transport of persons or goods) attracting IGST at 18% in terms of SI.No.401A of Schedule III of Notification No.01/2017 Integrated Tax (Rate) dated 28.06.2017 and CGST and SGST at the rate of 9% respectively in terms of the corresponding rate notification? 7.1 The applicant has stated that they are proposing to manufacture Garbage compactor and hook loader and have applied for ruling as to whether the vehicles would merit classification un....
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....f such supplies was enclosed; that they propose to supply the refuse/garbage compactor from its unit located in the state of Tamil Nadu through their Registered office vide GSTN No.33AAACA4651L1ZT and that they are expecting certain orders and confident of supplying the same in the future; that considering their proposal to supply and prevailing confusion as to the rate of GST payable on these vehicles, they seek the ruling.; that Section 95(a) of CGST Act,2017 defines Advance Ruling as to mean a decision provided by the authority or the Appellate Authority or the National Appellate Authority to an applicant on matters or on questions specified in sub-section(2) of Section 97 or sub-section (1) of Section100 or of section 101 C of the CGST Act, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the Applicant. They have also relied on the Flyer at Chapter 37 issued by CBIC wherein it has been stated that an Advance Ruling helps the applicant in planning his activities, which are liable for payment of GST, well in advance; that the flyer also states that the definition of Advance Ruling given under the Act is a broad one and an imp....