AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2022 (12) TMI 510
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....to whom operation & maintenance contract has been awarded by these Govt, bodies under Swachh Bharat Mission, for collection and disposal of household garbage, are classifiable under Tariff Item 8705.90.00 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as Special Purpose Motor Vehicles or is classifiable under any other appropriate Tariff item? b. Whether the above mentioned Garbage Tipper vehicles would attract IGST @ 18% under Sr. No. 401A under Schedule III of IGST Rates specified under Notification No. 1/2017-lntegrated Tax (Rate), dated 28.06.2017, as amended? c. If answer to question (b) above is in negative, what IGST rate would be applicable on the above mentioned Garbage Tipper vehicles? At the outset, we would like 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....
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.... copy of relevant abstract for Chapter Heading 8705 is enclosed & marked as Annexure '4' 2.7 As per Harmonized System of Nomenclature (HSN), the heading 8705 covers range of motor vehicles, specially construed or adapted, equipped with various devices that enabled them to perform certain non-transport functions i.e. the primary function of a vehicle of this heading is not the transport of persons or goods. These vehicles cover trucks used for cleaning streets, gutters, airfield runways etc. (sweepers, sprinklers, sprinkler-sweepers & cesspool emptier), break down lorries, crane lorries, fire fighting vehicles, concrete-mixers lorries, spraying lorries, mobile workshops, mobile radiological units etc. 2.8 In exercise of the power conferred by Section 5(1) of the Integrated Goods and Services Tax Act, 2017 (in short IGST Act), the Central Government has issued Notification No. 1/2017-lntegrted Tax (Rate) dated 28.06.2017 as amended. The IGST rate on goods are specified in various Schedules notified by the said Notification. 2.9 For Special Purpose Motor Vehicles, IGST rate of 18% has been specified under Sr. No. 401A under Schedule III of IGST Rates by Notification No. 1/2....
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....stions on which advance ruling is sought is provided under Section 95 and 97 respectively. The relevant sections are extracted below:- Section 95. Definitions: In this Chapter, unless the context otherwise requires,- (a) "advance ruling" means a decision provided by the Authority or the Appellate Authority or the National Appellate Tribunal to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub-section (1) of section 100 or of Section 101C, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant; (c) "applicant" means any person registered or desirous of obtaining registration under this Act; Section 97. Application for advance ruling: (1) An applicant....................... (2) The question on which the advance ruling is sought under this Act, shall be in respect of,- (a) classification of any goods or services or both; (b) applicability of a notification issued under the provisions of this Act; (c) determination of time and value of supply of goods or services or both; (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determina....
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....in view of its exclusive use for garbage application, 60:40/ 70:30 partition for segregation of DRY waste & WET waste at source (while collecting it from lanes/houses), the vehicle cannot be said to have principally designed to carry persons or goods. Hence, this vehicle would merit classification under Chapter sub-heading 87.05. 2.6 Also, as per Explanatory Notes to Harmonized System of Nomenclature (HSN), the heading 8705 covers range of motor vehicles, specially construed or adapted, equipped with various devices that enabled them to perform certain non-transport functions, i.e. the primary function of a vehicle of this heading is not the transport of persons or goods. 2.7 The Applicant further state that the impugned vehicle is designed for specific garbage application. 2.8 The Customs Tariff is aligned, up to 6 digit level, with the Harmonized System of Nomenclature (HSN in short) issued by the World Customs Organization. The HSN Explanatory Notes, released by the World Customs Organization, aid in the interpretation of the Headings of the Customs Tariff and may be used as a safe guide for the same. 2.9 The Hon'ble CEGAT, New Delhi in the case of Maniar & Co. Vs. CCE, ....
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....les wherein various application/variants of these vehicles are certified. However, the ARAI certificate enclosed with the application is Certificate No AAPN0001F01 dated 15.09.2020. On enquiring with the applicant about the different dates shown in the application & certificate, the applicant vide email dated 17-11-2021 clarified that the typo error in mentioning date of the Certificate issued by ARAI is mentioned as 15.01.2020 in Para 2.5 of Annexure 'A' of the ARA-01 application from instead of 15.09.2020. The certificate No. AAPN0001F01 dated 15.09.2020 in short mentions the name of Base Model as TATA ACE GOLD PETROL BS-VI and the type of vehicle as Goods Carrier having GVW 1615 Kg. Further on going through the layout of TATA ACE GOLD PETROL CAB CHASSIS BOX TIPPER it appears that the said vehicle can be used for transportation of any goods including goods in powder form. Chapter 8705 of GST Tariff is specified as below: 8705 SPECIAL PURPOSE MOTOR VEHICLES, OTHER THAN THOSE PRINCIPALLY DESIGNED FOR THE TRANSPORT OF PERSONS OR GOODS (FOR EXAMPLE, BREAKDOWN LORRIES, CRANE LORRIES, FIRE FIGHTING VEHICLES, CONCRETE-MIXERS LORRIES, SPRAYING LORRIES, MOBILE WORKSHOPS, MO....
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....ional officer. 5.2. Applicant stated that the Chapter sub-heading 8705 covers special purpose vehicles and defines special purpose vehicles as other than those principally designed for the transport of persons or goods. Few illustrative examples of vehicles which would be covered under this heading are also given in this sub-heading. These vehicles cover trucks used for cleaning streets, gutters, airfield runways etc. (sweepers, sprinklers, sprinkler-sweepers & cesspool emptier), break-down lorries, crane lorries, fire fighting vehicles, concrete-mixers lorries, spraying lorries, mobile workshops, mobile radiological units etc. 5.3. Applicant further stated that the Garbage Tipper vehicles are specially / exclusively designed for garbage application and for use by Govt. Bodies. The Garbage Tipper vehicle enable access to small lanes for garbage collection for tipping the same in to a compactor or at dumping sites as decided by Govt. Bodies. This Garbage Tipper vehicle has 60:40/ 70:30 partition for segregation of DRY waste & WET waste at source (while collecting it from lanes/houses) as per National Green Tribunal (in short NGT) guidelines. The bodies are designed with tarpaulin/....
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....eading 8705 specifies special purpose vehicles, other than those principally designed for the transports or goods. From the above, it can be seen that the vehicle manufactured by the applicant is a goods carrier and cannot be termed as a special purpose vehicles as claimed by the applicant. In the tariff heading 8705, It is clearly shown that what could be the vehicles like Breakdown Lorries, Crane Lorries, Fire fighting Vehicles, Concrete Mixer Lorries, Spraying Lorries, Mobile Workshops, Mobile Radiological Units and Tata Ace Garbage Tipper vehicle cannot be compared with them or it can be termed as a similar vehicle." After perusal of above referred to Certificate dated 15/9/2020 it is seen that in the column of Type of vehicle it is mentioned as "goods carrier". Thus, as per the certificate itself it is goods carrier. Thus the said vehicle would get covered under heading 87049090, after considering all the contentions and facts as available on record. The dealer has not produced details as to tonnage of vehicles, so this finding that it is covered by 87049090 is given on the best judgment basis. As shown in underlined portion above the applicant admitted that it can be used ....