2024 (11) TMI 1396 - AAR - GST

Seeking rectification of a ruling order - Section 102 read with Section 97 of Central Goods and Services Tax Act, 2017 and the Andhra Pradesh Goods and Services Tax Act, 2017 - HELD THAT - The contention of the applicant has been examined in the light of the original order and noticed that there are some additional equipments which are required to be made available on a ship as additional safety measure in compliance with certain statutory provisions. Though these are also to be compulsorily made available on a vessel and ship but cannot be taken to be parts of a ship as per general understanding but are rather additional equipments on a ship. Hence the request of the applicant for deletion of the term Lifeboat in Para no. 2 of Page number 19 is not considered. The original order is amended in para no 2 of page no 21 and serial numbers 81 and 89 are included and these are to be considered not as essential part of a warship/submarine but additional equipment s. The application is hereby disposed off .

Summary

Issues:
Rectification of order under Section 102 read with Section 97 of Central Goods and Services Tax Act, 2017 and the Andhra Pradesh Goods and Services Tax Act, 2017.

Analysis:
The case involves an application filed by M/s. Hindustan Shipyard Limited seeking rectification of a ruling order issued to them. The applicant requested rectifications related to the applicability of IGST on a list of equipment and the classification of lifeboats as additional equipment.

1. Applicability of IGST on allowed list of equipment's:
The applicant sought rectification to specify that the approved list of equipment should be chargeable at 5% (IGST 5%, CGST 2.5%, SGST 2.5%) under specific notifications. However, it was clarified that the tax rate under IGST is a combination of CGST and SGST/UGST, eliminating the need for a separate mention of the IGST rate. Therefore, the request for rectification on this issue was not considered.

2. Exclusion of term lifeboats from being classified as additional equipment's:
The applicant argued that lifeboats should not be classified as part of a ship but as additional equipment, requesting their removal from the list of essential equipment in the ruling order. After examination, it was acknowledged that while lifeboats are necessary for safety compliance, they are not considered parts of a ship but additional equipment. The request to delete the term "Lifeboat" was not accepted. However, based on discussions during a personal hearing, the ruling order was amended to include serial numbers 81 and 89 as additional equipment, not essential parts of a warship/submarine.

In conclusion, the rectification application was disposed of, and the ruling order was amended to reflect the classification of certain equipment as additional rather than essential parts of a ship.