TaxTMI 
TaxTMI 
TaxTMI 
2022 (2) TMI 124
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....ike to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT FACTS 2.1 M/s Rochem Separation Systems India Private Limited, the applicant received an order from Controller Procurement Material Organization (Vizag) Kancharapalem (Post), Eastern Naval Command, Visakhapatnam-530008 ('buyer') for supply of RO Plant/Water Purification System. 2.2 The applicant is engaged in supply of Reverse Osmosis Plant (RO Plant/System) classified under Chapter Heading 8421 as per GST Tariff. The applicant has been supplying the subject goods to various buyers by charging GST @ 18%. The applicant has been informed by the Indian Naval Department that, GST should be charged @ 5% in respect of supply of RO Plant/system to be installed in warship, in view of Notification No.01....
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.... cart would have to be treated as part of the respective vehicles but this cannot be a tenable proposition. 2.5 The R.O. Plant/system is to be installed on warship for the purpose of purifying water. It does not contribute in functionality of the warship. Merely because RO Plant is installed in the warship, it does not become part of it. As per the applicant, the goods (i.e, RO Plant/system) supplied by it falls under S. No. 322 of Schedule III of Notification No.01/2017-CTR dated 28.06.2017 attracting 18% CGST, which the applicant has already been charging accordingly. 2.6 APPLICANT SUBMISSION DATED 04.01.2022: TECHNICAL NOTE WATER USAGE / REQUIREMENTS ON SHIPS The ships require the following types of waters for use during its operations at high seas / passages 1. Boiler quality water (Ultra high quality water) for use in boilers which produce steam for running of steam turbines which are used for ships propulsion. 2. Technical quality water (Superior quality water to be used for machinery (Like turbine washing /engine cooling, which are predominantly ships Propulsion systems) 3. Drinking/ Potable water for human consumption by the personnel onboard and also for other us....
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.... of 9%. 04. HEARING 4.1 Preliminary e-hearing in the matter was held on 26.10.2021. The Authorized representative of the applicant, Shri. Atul Mishra, learned CA and Shri. Prashant Shrivastava, learned Advocate were present. The Jurisdictional officer Shri. Rajesh Sangale, learned Deputy Commissioner, MUM-VAT-E-634, LTU-3 was also present. 4.2 The application was admitted and called for final e-hearing on 23.11.2021. The Authorized representative of the applicant, Shri. Atul Mishra, learned CA and Shri. Prashant Shrivastava, learned Advocate were present. The Jurisdictional officer Shri. Rajesh Sangale, learned Deputy Commissioner, MUM-VAT-E-634, LTU-3 was also present. The case was heard. 05. OBSERVATION AND FINDINGS: 5.1 We have gone through the facts of the case, perused the documents on record, and considered the oral/written submissions made by both, the applicant as well as the jurisdictional/concerned officer. 5.2 We find that the applicant is engaged in supply of Reverse Osmosis Plant (RO Plant/System) classified under Chapter Heading 8421 as per GST Tariff. The applicant has been supplying the goods (RO Plant/System) to various buyers by charging GST at the rate of 1....
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.... Tariff only is they are used as 'Parts of goods of headings 8901, 8902, 8904, 8905, 8906, 8907'. 5.5.5 To deal with the limited issue before us i.e. to find out whether the impugned goods supplied by the applicant are parts of a ship first of all we need to examine as to what are "Parts". We find that the word "Part/Parts" has not been defined in GST nor was it defined in Central Excise earlier. In view of this first we are required to understand the general meaning of the word 'Part/Parts' which is of relevance to us in the present case. -------We find that as per Cambridge English Dictionary: Part as a noun - a separate piece of something or a piece that combines with other pieces to form the whole of something --------One of the pieces that together form a machine or some type of equipment. It has other meanings also in other context which are not of relevance in present context like: ----a single broadcast of a series of television or radio programme or Division of a story. ----one of two or more equal or almost equal measures of something etc. 5.5.6 Thus in view of the above meanings/definitions of "parts", we will be required to examine as to wh....
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....In case of Saraswati Sugar Mills Vs Commissioner of Central Excise Civil Appeal No.5295 of 2003 decided on 2nd Aug 2011 Hon. Supreme Court of India observed: 12. In order to determine whether a particular article is a component part of another article, the correct test would be to look both at the article which is said to be component part and the completed article and then come to a conclusion whether the first article is a component part of the whole or not. One must first look at the article itself and consider what its uses are and whether its only use or its primary or ordinary use is as the component part of another article. There cannot possibly be any serious dispute that in common parlance, components are items or parts which are used in the manufacture of the final product and without which, final product cannot be conceived of. 13. The meaning of the expression `component' in common parlance is that `component part of an article is an integral part necessary to the constitution of the whole article and without it, the article will not be complete'. 14. This Court, in Star Paper Mills (supra) has made a settled distinction while considering whe....
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....citations: 1977 AIR 132, 1977 SCR (1) 837. In this case the appellant contended before the Hon SC that carbon paper does not lose its character as paper in spite of being subjected to chemical processes, and that ribbon is not an accessory but an essential part of the typewriter. While dismissing the appeal Court held that "A word which is not defined in an enactment has to be understood in its popular and commercial sense with reference to the context in which it occurs. It has to be understood according to the well-established canon of construction in the sense in which persons dealing in and using the article understand it." The Hon.SC further observed that "Bearing in mind the ratio of the above mentioned decisions, it is quite clear that the mere fact that the word 'paper' forms part of the denomination of a specialized article is not decisive of the question whether the article is paper as generally understood. 'the word 'paper' in the common parlance or in the commercial sense means paper which is used for printing, writing or packing purposes. We are, therefore, clear of opinion that Carbon paper is not paper as envisaged by entry 2 of the aforesaid ....
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....8421 and attract 18% GST in view of Sr.No. 322 to Schedule III of Notification No. 01/2017 - Central Tax (Rate) dated 28.06.2017. 5.5.13 The impugned goods, being in the nature of additional equipment used in ships and not parts of ship cannot be considered for concessional rate of GST as parts of a ship in view of our discussions above. 5.5.14 We have also considered the fact that fresh water is very essential necessity for the members/crew of the vessels in terms of drinking water, water for cooking, etc. especially when the ship is out for a long haul but such essential necessity of the impugned equipment is for the crew/members and not for the ship as a whole. Any ship can just sail without have the impugned equipment on board and therefore the impugned goods cannot be considered as parts of a ship and therefore, the subject supply of impugned goods cannot be given the benefit of concessional rate of GST as per Sr. No. 252 of Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017. 5.6 We observe that, even the applicant is convinced that the impugned goods cannot be covered under Sr. No. 252 of Notification No. 01/2017 - Central Tax (Rate) dated 28.06.2017 as can be se....