2022 (10) TMI 857

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....d is the authorized distributor for Yamaha Motor Company's marine products since 1979. The applicant imports and supplies Yamaha Out Board Motors and related parts to their various customers in India. Imports are channelized through their offices located in the State of Tamil Nadu. The applicant also provides repairs and maintenance service for Out Board Motors and also sells spare parts of marine engines. In addition to this, the applicant also imports fishing hooks and agricultural equipment for sales in markets in India. 2. At the outset, it is clarified that the provisions of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act) and the Kerala State Goods and Services Tax Act, 2017 (hereinafter referr....

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....n marine and freshwater. They can be operated only by fitting the motor to a boat. The cooling system of the outboard motor is designed to take water through the propellers and hence the engine cannot be operated out of water. These are water-cooled engines and not air-cooled. The OBM cannot be utilized unless otherwise fitted on the boat even for doing service the OBM is put into a water tank to attend to repairs and maintenance. 4.2. The applicant requested an advance ruling regarding the classification and the rate applicable for sales of OBMs to fishermen and other Government agencies and other purposes including sales done through dealers' authorized service centres and boat builders. 4.3. The applicant further states that Se....

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....ubsidiary to their main function; floating docks, floating or submersible drilling or production platforms. 250 8906 Other vessels, including warships and lifeboats other than rowing boats 251 8907 Other floating structures (for example, rafts, tanks, coffer-dams, landing-stages, buoys and beacons) 252 Any chapter Parts of goods of headings 8901, 8902, 8904, 8905, 8906, 8907 4.5. The Out Board Motors are parts of vessels falling under Tariff Item nos. 8901, 8902, 8904 and 8906, therefore, the GST rate for Out Board Motors supplied as given above falls under the rate of 5% and not at the rate of 28%. The Ministry of Finance (Tax Research Unit) has already issued a clarification vide Circular No.52/26/2018-GST da....

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.... of Schedule I of the Notification No.01/2017-CT(R) dated 28-6-2017 is also applicable to parts of goods of heading 8901, 8902, 8904 and 8906. 4.7. It is further submitted that the applicant proposes to make sales of OBMs falling under Tariff Item No.8407 21 00 and spares parts for OBM at a GST rate of 5%; (i) to fishing industry based on identity card issued by the Fishermen Society of Fisheries Department; (ii) to dealers/authorized service centres appointed in the respective territory to take care of supplies based on the declaration by the customer regarding end-use; (iii) to the ferry boat industry based on the declaration by the customer regarding the end-use; (iv) to boatbuilders based on the de....

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....te of GST applicable to outboard motors of HS Code 8407 and its spare parts as per Entry in Schedule I, Sl. No.252 of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017, and regarding the applicability of clarification issued vide Circular No.52/26/2018-GST (Point 10.1) in respect of the issue. 7.2. We have gone through the contentions of the applicant and the specific remarks offered by the jurisdictional officer. To classify the products, the provisions of Notification No 01/2017 Central Tax (Rate) dated 28.06.2017 are to be verified. The Outboard motors imported by the applicant are classified under Customs Tariff Heading 8407 21 00 - Outboard motors - Marine Propulsion engines - Spark-ignition reciprocating or rotary intern....

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....o. 01/ 2017-Central Tax (rate) dated 28.06.2017. Further, parts of goods of heading 8902, falling under any chapter also attract GST rate of 5%, vide SL. No. 252 of Schedule I of the said notification. The Marine engine for fishing vessel falling under Tariff item 8408 10 93 of the Customs Tariff Act, 1975 would attract a GST rate of 5% as per S. No. 252 of Schedule I of the notification No. 01/2017-Central Tax (rate) dated 28.06.2017. 10.2 Therefore, it is clarified that the supplies of marine engine for fishing vessel (being a part of the fishing vessel), falling under tariff item 8408 10 93 attracts 5% GST." 7.3. The jurisdictional officer has raised a contention that the item should be classified under the heading HSN Code O....