TaxTMI 
TaxTMI 
2022 (7) TMI 180
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....thority for Advance Ruling Regulations, 2018. 1.1 At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression 'GST Act' would mean the CGST Act and the WBGST Act both. 1.2 The applicant is an entity engaged inter-alia in the business as an importer of spare parts of electrically operated vehicles. The applicant intends to enter into the business of manufacturing and reselling of electrically operated three wheeled vehicles in the state of West Bengal. 1.3 The applicant has made this application under sub section (1) of section 97 of the GST Act and the rules made there under raising following questions vide serial number 14 of the application in FORM GST ARA-01: ....
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....e a vehicle adapted for use upon roads; and • powered exclusively by an electric motor; • whose traction energy is supplied exclusively by traction battery; • installed in the vehicle Analysis: 1. When we see the definition of an 'E-Rickshaw' under Motor Vehicles Act (supra), it is clear that by definition, it is a battery powered vehicle, thus automatically satisfying all the conditions of a battery operated vehicle as mentioned above in Rule 2(u). The definition of an 'e-rickshaw' or the 'battery operated vehicle' nowhere put a condition that the battery has to be supplied by the manufacturer. What it says that it should be installed in the vehicle so that it can supply traction energy to the electric motor. 2. An electric motor converts electrical energy supplied by the traction batteries as such into the mechanical energy for the propulsion of vehicle. 3. It is worthwhile to note that the definition of battery operated vehicle (supra) use the word 'exclusively' both for the electric motor and the traction battery. By using this word, the rule makes it absolutely clear that in order to be a battery operated veh....
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....otification: Clause (iii): "Tariff item", "sub-heading" "heading" and "Chapter" shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). Clause (iv): The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification. General rules for the interpretation of First Schedule-Import Tariff to the Customs Tariff Act, 1975: As per Rule 3(a), the heading which provides the most specific description shall be preferred to headings providing a more general description. First Schedule to the Customs Tariff Act, 1975 (51 of 1975) Chapter 87 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) is related to 'Vehicles other than railway or tramway rolling-stock and parts and accessories thereof'. This chapter has 16 chapter headings starting from 8701 to 8716. The description of Chapter heading 8703 is "Motor cars and other motor vehicles p....
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..../2019-Integrated Tax (Rate), 31st July, 2019. The entry reads as follows: 242A 87 Electrically operated vehicles, including two and three wheeled electric vehicles. Explanation .- For the purposes of this entry, "Electrically operated vehicles" means vehicles which are run solely on electrical energy derived from an external source or from one or more electrical batteries fitted to such road vehicles and shall include E- bicycles." • Analysis: "Other vehicles with only electric motor for propulsion" This entry does not talk about vehicles fitted with internal combustion engine (ICE) or hybrid vehicles where both electric motor and ICE is used. It talks about those vehicles which uses only electric motor for propulsion. Such vehicles as specified under sub-heading 870380 are as follows: Tariff Item Description 87038010 Vehicles principally designed for transport of more than seven persons, including driver 87038020 Specialized transport vehicles such as ambulances, prison vans and the like 87038030 Motor Cars 87038040 Three-Wheeled vehicles 87038090 Other As can be seen above, Tariff item for "Other vehicles....
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....he manufacturer. o The electric motor used in an electric vehicle is not an engine. Use of internal combustion engines (ICEs) is another way used for propulsion of diesel/petrol driven vehicles. Such ICEs are not used in an E-Rickshaw as can be seen from the technical specification drawing attached herewith duly certified by an approved testing agency. o Rule 122 of CMVR, 1989 clearly provides that in case of battery operated vehicles, motor number and not the engine number is required to be embossed or etched or punched on the vehicle and if space is insufficient in such vehicle for etching, embossing or punching, then it shall be on an identification plate welded or rivetted to the body of the vehicle. o As per Rule 3(a) of the General rules for the interpretation of First Schedule-Import Tariff to the Customs Tariff Act, 1975, the heading which provides the most specific description shall be preferred to headings providing a more general description. An electrically operated vehicle/three-wheeled electrical vehicle specified in Entry No. 206 of Schedule-II (12%) up to 31.07.2019 and Entry No. 242A of Schedule-I (5%) after that provides the most specifi....
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....d come under HSN CODE 87060031 which relates to 8706 CHASSIS FITTED WITH ENGINES, FOR THE MOTOR VEHICLES OF HEADINGS 8701 TO 8705 FOR THE MOTOR VEHICLES OF HEADING 8703 FOR THREE-WHEELED VEHICLES. 4. Observations & Findings of the Authority 4.1 We have gone through the records of the issue as well as submissions made by the authorised advocates of the applicant during the course of personal hearing. We have also considered the submission made by the officer concerned from the revenue. 4.2 The issue involved in the instant case is to determine whether a three-wheeled electrically operated vehicle (commonly known as e-rickshaw) when supplied without battery can be regarded as an electrically operated vehicle under HSN 8703. 4.3 Chapter 87 of the First Schedule to the Customs Tariff Act,1975 classifies "Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof". Further, Tariff item under 8703 broadly covers following description of goods: • MOTOR CARS AND OTHER MOTOR VEHICLES PRINCIPALLY DESIGNED FOR THE TRANSPORT OF PERSONS (OTHER THAN THOSE OF HEADING 8702), INCLUDING STATION WAGONS AND RACING CARS. Furthermore, 'Other vehic....