TaxTMI 
TaxTMI 
2021 (12) TMI 322
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.... by M/s OCEAN BLUE BOATING PRIVATE LIMITED, the applicant, seeking an advance ruling in respect of the following questions. 1. Whether GST rate of 5% can be charged on supply of marine engines of heading 8407 and heading 8408 and/or their spare parts of heading 8409 without considering its general tax rate as per the entry of schedule I, Sl. No. 252 of Notification No. 12017-Central Tax (Rate), Dated 28-06-2017, on the basis of its ultimate used as part of fishing vessel of heading 8902. 2. Whether GST rate of 5% can be charged on supply of marine engines of heading 8407 and heading 8408 and/or their spare parts of heading 8409 when it is supplied for use of defense purpose, patrolling purpose, flood relief and rescue oper....
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....rtment falling under HSN 8906. Applicant Submission dated 12.10.2021:- 2.4 S.N. 252 of Schedule I (i.e. 2.5%) of Notification No. 01/2017, covers part of goods under various HSN and following HSN are also included in the same- (i) 8902 (Fishing vessels,- factory ships & other vessels for processing or preserving fishery products). (ii) 8906 (Other vessels, including warships and lifeboats other than rowing boats) 2.5 Applicant supplies marine engines and spare parts of these engines to Fishermen (who use their boats for Fishing Operations) and Government Departments (who use their boats for Patrolling and rescue operations). Hence, based on uses of applicant's engines and spare parts, it becomes part of goods cove....
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....904, 8905, 8906, 8907. 2.7 At the, time of making supply to fishermen, applicant collects following documents: 1. Fisherman ID card Issue by Respective Agency. 2. Declaration (Format Attached). 3. Documents for confirmation nature of supply. 03. CONTENTION - AS PER THE CONCERNED OFFICER: Officer Submission dated 09.11.2021:- 3.1 The applicability of GST rate of 5% on marine engines of heading 8407 and 8408 and their spare parts of heading 8409 (being a part of fishing vessels of heading 8902), has already been clarified vide the Circular No. 52/26/2018-GST dated 09.08.2018. 3.2 Regarding the applicability of GST rate of 5% on supply of material and services in connection with the maintenance and rep....
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....r in detail. 5.2 The applicant has submitted that they are importing Marine Propulsion Engines under HSN Code 8407, 8408 as well as spare parts of marine propulsion engines under HSN Code 8409 and are supplying the same for use as a part of fishing vessels, Police, Defense department, Patrol, flood relief & rescue department and others. 5.3.1 Applicant's first question is whether GST rate of 5% can be charged on supply of the impugned goods as per the entry of schedule I, Sr. No. 252 of Notification No. 1/2017-Central Tax (Rate), Dated 28-06-2017, on the basis of its ultimate use as part of fishing vessel of heading 8902. Thus, the first issue that is raised before us by the applicant is whether the said marine engine and parts ....
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....252 of Notification No. 1/2017-C.T.(Rate), dated 28-6-2017. 5.3.5 We have no reason to deviate from this view and accordingly hold that in the subject case, the marine engine and parts thereof attract 5% GST under Sr. No. 252 of Notification No. 1/2017-C.T. (Rate), dated 28-06-2017, if supplied to fishing vessels. 5.3.6 Further, the said issue has also been clarified vide the Circular No. 52/26/2018-GST dated 09.08.2018 (also applicable to the instant case), the same is cited as under: "10.1 Applicability of GST on marine engine: Reference has been received seeking clarification regarding GST rates on Marine Engine. The fishing vessels are classifiable under heading 8902, and attract GST @ 5%, as per S. No. 247 of Schedule of....
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....ond question pertains to supplies made for ships/vessels used for defense purpose, patrolling purpose, flood relief and rescue operations. 5.4.2 The reasoning given by this authority in respect of question number 1 above also applies to this question and therefore we hold that Marine engine, and parts thereof will be covered under Sr. No. 252 of Notification No. 1/2017-C.T.(Rate), dated 28-6-2017, when used in the manufacture of goods falling under 8901, 8902, 8904, 8905, 8906, 8907. Items which do not conform to "parts of marine engines" will not be covered under the said Sr. No. 252 of Notification No. 1/2017-C.T.(Rate), dated 28-6-2017. 06. In view of the extensive deliberations as held hereinabove, we pass an order as follows: ....