TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 1741
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....N Code/SAC Code Rate of Tax Notification under which we claimed tax Rate Imported/ Domestically purchased Purpose for which imported 1 Marine engine for fishing boat 84081093 5% Notification No.1/IGST (Rate) or CGST (Rate)dated 28/06/2017, Serial No.252" Any chapter" part of goods under heading 8401,8402,8404,840 5, 8406,8407, Imported as well as Domestically purchased For Part of fishing Vessels sold to Fisher man & Boat Builders 2 Marine Gear for fishing boat 848340000 5% Notification No.1/IGST (Rate) or CGST (Rate)dated 28/06/2017, Serial No.252" Any chapter" part of goods under heading 8901,8902,8904,890 5,8906,8907 Imported as well as Domestically purchased For Part of fishing Vessels sold to Fisher man & Boat Builders 3 Marine engine spares for fishing boat 84099990 5% Notification No.1/IGST (Rate) or CGST (Rate)dated 28/06/2017, Serial No.252" Any chapter" part of goods under heading 8401,8402,8404,840 5,8406,8407 Imported/ Domestically purchased from registered dealers in GST For Part of fishing -Vessels sold to; Fisher man & Boat Builders 4 Marine engine and Gear or other part of engine boa....
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.... be treated as parts of heading of 8902, 8904, 8905, 8906, and 8907 and applicability of 5% of IGST, while importing of Marine Gear as per serial No.252 of Schedule -I of the Notification No.01/2017 IGST Tax dated 28.06.2017, on the basis of its ultimate use as part of fishing vessel of heading 8902. * During the time of making supply of fishermen we are receiving the Fisherman ID or Boat RC as end use proof. * We proposed to import marine engine and its parts and Marine Gear through Nhava Sheva Port -Maharashtra for selling the same to fisherman, through Maharashtra branch & Gujarat & Goa branch in order to mitigate/ reduce the Transport cost to the company. Submissions regarding interpretation of law and Facts for afore said question. 2.4 The applicant is dealing with the product Marine engine and its spares and Marine Gear box. As per notification No.1/2017-IGST (Rate) specifies the General Rate for classification of subject goods under different Scheduled which are as under. Schedule No. Sr. No Chapter Heading Description of goods IGST IV 115 8408 Compression-ignition combustion piston engines (diesel semi-diesel engines) 28....
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....ruling or notification issued by GST & Customs Authority and came to know that, these are (Marine engine and it spares and Marine Gear) the parts of fishing boat, hence they are seeking customs authority, whether these are parts of fishing boat and can be availed 5% IGST. 2.7 CERTFICATION FROM CONCERNED DEPARTMENT The applicant submit that, they have enclosed the certificate which is received from Charted accountant and State Tax officer of GST where we fall under their jurisdiction and Certificate from Asst. Director of Fisheries-Nagercoil who verify the KYC documents of customers like Boat Registration Certificate and Fisher man ID Card etc. and certify that they sold marine engine spares to fishing vessels only. Charted Engineer Mr. Shankar Ramalingam issued the certificate No. ER.PSR/CEC@SMM/1124 dated 01.09.2024 to the applicant where in it is certified that Marine engine & its spares and Marine Gear can be using only in Fishing or Transport or Cargo vessels, it will not be suitable for automobile vehicle or industries. The Content of the certificate is as following: 2.7.1 Marine Diesel Engine and Marine Gear Box, Definition: Marine diesel engine is type o....
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....d unit-Wikipedia Components/parts/spares are items or parts which are used in manufacture of the final product and without which final product cannot be conceived of and component part of article is an integral part necessary to the constitution of whole article and without it, the article will not be complete Marine engine spares are part of Fishing vessels, due to if spares of Marine engine damaged, marine engine will not run which in turn Fishing boat will not moving in Sea of water, area, part is vital product of finished goods/ whole, if its damaged, whole function of main product will not be functioning. When Marine engine it means all the parts of Marine engine is fitted with boat/ vessels, they are called as Boat/ship spares. For example valve for cycle tubes is part of cycle not a part of cycle tubes. when it fitted with cycle they are called as cycle parts not a cycle tubes parts Components of components is also component of main machines part of parts is also a part of main product. 2.7.5 Conclusion: Marine Diesel Engines and its spares and Marine Gearbox's are the very essential parts of a fishing vessel without marine engine and its spares and Marine Ge....
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....Hon'ble Supreme Court, while allowing the benefit of Notification No. 6/2002-CE, to doors of tower which were used as part of Windmill (parts of parts of Windmill), held that, "It is not in dispute that as far as windmill doors or tower doors are concerned, it is a safety device which is used as security for high voltage equipment fitted inside the tower, preventing unauthorized access and preventing entries of reptiles, insects, etc., inside the tower. This, according to us, would be sufficient to make it part of the electricity generator. Further, since the tower is held as part of the generator, door thereof has to be necessarily a part of the generator. We, therefore, are of the opinion that there is no case of interference made out by the department, benefit of Notification No.6/2002-CE available". (ii) In the case of Collector of Central Excise v. Mahendra Engg. Works, the Hon'ble CESTAT Delhi, allowing the benefit of exemption to Stampings and laminations used in electric motors or in rotors or stators which in turn is used as component parts in manufacture of power driven pumps, considered that parts of parts of power driven pump ought to be regarded as par....
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....t i.e. tower will be part of the whole i.e. Wind Generated Mill producing electricity from unconventional services. Every devices/systems part in this case having been specifically designed for that purpose in mind. That part of part is part of whole is well settled, relying upon [CCE v. Mahendra Engineering Works - 1993 (67) E.L.T. 134 followed in Bensel Industrial Corporation - 2000 (118) E.L.T. 1191. We find the 'flanges' to be a part of WOEG" (ix) In the case of Collector of C. Ex .. Calcutta v. Jay Engineering Works Ltd., the Hon'ble Tribunal Delhi, held that, "Electrical Stampings and Laminations used in the manufacture of electric motors, which in turn are used in the manufacture of power-driven submersible pumps, are eligible for the benefit of Notification No. 64/86-C.E., dated 10-2-1986. Parts of parts have been considered as to be eligible to the benefit of notification. (x) In the case of Shriram Bearings Ltd. v. Commissioner of C. Ex., Jamshedpur, the Hon'ble Tribunal, Kolkata, held that, "We find that the said exemption has been denied by the adjudicating authority by observing that the Tribunal's decision in the case of Mahendra ....
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....lication is ship, vessels, boats, Floating structures are to be classified under serial No.252 of Notification No.01/2017-Central Tax dated 28/06/2017? Ruled By Honourable Members (CGST+SGST) Maharashtra Yes, Marine diesel engine and parts thereof will be covered under Sr.252 of Notification 01/2017-CGST dated 28/09/17, when used as manufacture of goods of 8902,8904,8905,8906,8907 and supplied building companies /shipyards or Indian Navy, items which do not confirm to parts of marine diesel engine will not be covered under said notification. Applicant Name Ocean Blue Boating private limited Advance Ruling No GST-ARA-32/2021-22-105, Mumbai dated 06/12/2021 Commodity 8407,8408& 8409 -Marine engine and its spares Question for which advance ruling Sought Whether GST rate of 5% can be charged on supply of marine engine of heading 8407, heading 8408 and or their spares parts of heading 8409 without considering its general tax rate as per the entry of schedule I SI.No.252 of Notification No.01/2017 - Central tax Rate dated 28/06/17 on the basis of its ultimate used as part of fishing vessel heading 8902. Ruled By Honourable Members (CGST+SGST) Ma....
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....VANCERULING No.KER/21/2023 Dated 27/06/23 Commodity 8407 & 8409 Question for which advance ruling Sought The Rate on Ouboard Motor Engines coming under HSN Code 84072100 and its spare parts exclusively used as part of fishing vessel of heading 8902 Ruled By Honourable Members (CGST+SGST) KERALA The outboard motor engines and its spares parts supplied for use in fishing vessels falling under customs Tariff heading 8902 shall attract GST at the rate of 5% as per entry at SL No.252 of Schedule I of Notification No.01/2017, Central Tax (Rate) dated 28.06.2017 Applicant Name Ms.Techno Trading and services Pvt ltd Advance Ruling No ADVANCE RULING No. KER/34/2019 dt:01.03.2019 Commodity 8408 & 8483 Question for which advance ruling Sought Whether the Marine Diesel engine (TSH-8408) and Gear box (TSH) of customs act 1975, as adopted to GST Can be treated as parts of heading of 8901, 8902, 8904, 8905,8906 and 8907 attracting 5% IGST as per serial no.252 of Schedule -I of the Notification No.01/2017 Central tax dated 28.06.17 or not? Ruled By Honourable Members (CGST+SGST) KERALA The Marine engine and Marine Gear box supplied for use ....
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....s follows: Marine Gear boxes which is essential part of fishing boat, main function of the gearbox is to increase or reduce speed of boat, torque output will be the inverse of the speed function of boat, By selecting a combination of different numbers of teeth, an arbitrary and correct speed ratio can be obtained. Using the increase or decrease of the number of gear combinations, the position of the mutual relationship between the rotary axes can be freely changed. It can be used for transmission between various axes such as parallel axes, intersecting axes, and staggered axes. And connected mechanical component that is widely used in wind turbines. Its main function is to transmit the power generated by the wind wheel under the action of wind to the generator and make it obtain the corresponding speed. Usually, the rotational speed of the wind rotor is very low, which is far from the rotational speed required by the generator to generate electricity. 3. The IGST rates are determined as per notification 01/2017 dated 28.06.2017 issued under section 5(1) of the IGST Act, 2017. The section 5(1) of IGST Act 2017 is as follows; (1) Subject to the provisions of sub-....
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....e said application/submissions to the concerned Jurisdictional Customs Commissionerate i.e. The Commissioner of Customs, JNCH, Nhava Sheva as stated by the applicant at Sr. No. 13 of the CAAR-I form (Application form for advance rulings) calling upon them to furnish the relevant records with comments, if any, in respect of said application. However, no reply has been received from Jurisdictional Commissionerate till date. 5. A personal hearing in the matter was conducted on 12.02.2025. Shri T Kamraj, Taxation Manager appeared for Personal Hearing. He reiterated the submission filed with the application. He also submitted that their contention is limited to the product description at Sr. No. 1,2 and 3 only i.e for Marine Engine for fishing boat, Marine gear for fishing boat and marine engine spare for fishing boat that they do not press the fourth item i.e marine engine and gear or other part of engine boat. Nobody appeared from the Jurisdictional, Commissionerate during the personal hearing. 6. I have considered all the materials facts and submissions placed before me for the subject goods. I have gone through the submissions made by the applicant during the personal hearing ....
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....rpretation of the HSN, the WCO has published detailed Explanatory Notes to the HSN which have long been recognised as a safe guide to interpret the Schedules to the Customs Tariff. 6.7 In the case of CC vs. Wood Craft Products Ltd., (1995) 77 ELT 23 (S.C.) the Hon'ble Supreme Court of India held that in case of doubt, HSN is a safe guide for ascertaining true meaning of any expression used in the Act, unless there is an express different intention Indicated in the Customs Tariff itself. The same view has been taken by the Hon'ble Supreme Court in the case of CC v. Business Forms Ltd., 2002 (142) E.L.T. 18 (S.C.)= 6.8 Therefore, to further interpret the relevant Headings, Sub-Headings and Section Notes under the First Schedule of the Customs Tariff, reliance can also be placed on the Explanatory Notes to the HSN. 6.9 The applicant intends to import Marine engine and its spares & Marine Gear Box to be used as parts of fishing boats. The applicant submitted the certificate which is received from Charted accountant and State Tax officer of GST where they fall under their jurisdiction and Certificate from Asst. Director of Fisheries-Nagercoil who verify the KYC document....
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....eading are mainly includes GEAR BOXES AND OTHER SPEED CHANGERS, INCLUDING TORQUE CONVERTERS. These provide a range of speeds which can be varied, either by hand or automatically, according to the requirements of the machine. They include, inter alia: (1) Gear-boxes consisting of assemblies of gears which can be selected in alternative arrangements; the speed of transmission can thus be varied according to the arrangement of gears set. Thus, the Marine Gear Box is classifiable under CTH 8483 and specifically under CTI 84834000 descripted as Gears and gearing, other than toothed wheels, chain sprockets and other transmission elements presented separately; ball or roller screws; gear boxes and other speed changers, including torque converters 6.13 Therefore, on application of GIR 1 it is concluded that the classification of subject goods are as following: SI. No. Description of Goods CTH CTI 1 Marine Engines 8408 84081010 2 Spares of Marine Engines 8409 84099990 3 Marine Gear Box 8483 84834000 7. The IGST Notification No. 01/2017 dated 28.06.2017 specifies the General Rate for classification of subject goods under diffe....
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....hich are to be used as parts of fishing boats. The applicant submitted the Charted Engineer certificate issued to the him, detailed content of which mentioned in Para 2.7, wherein the Charted Engineer certified that the subject goods i.e Marine diesel engine and is parts and marine gearbox is a part of vessels or fishing vessels (boat/ships), without which fishing vessels cannot sail in sea water/water and further certified that it cannot be used/suitable functioning in automobile Industries or other sectors. 7.1.1 It is mentioned in the Charted Engineer certificate issued to the applicant that Marine engine spares are part of Fishing vessels, due to it spares of Marine engine damaged, marine engine will not run which in tum Fishing boat will not moving in Sea of water, area, part is vital product of finished goods/ whole, if its damaged, whole function of main product will not be functioning. When Marine engine it means all the parts of Marine engine is fitted with boat/ vessels, they are called as Boat/ship spares for example valve for cycle tubes is part of cycle not a part of cycle tubes. when it fitted with cycle they are called as cycle parts not a cycle tubes parts Compon....