2019 (8) TMI 818 - AAR - GST

Classification of goods - part of fishing vessels Propeller - Shaft/SS Rod - Gun Metal Bush/Bearing - Stuffing Box - Brass Tube/SS Tube - Rudder Shaft and Blade - Sea Cork/Water Strainer - GM Gate Valve - MS Pipe - Propeller Nut/GM Nu - Coupling - SS Rods Square - SS Flat - GM Gland and Ring - MS Plate - HELD THAT - As per Notification No.1/2017 Central Tax (Rate) dtd.28-06-2017 vide Sl.N0.247 of First Schedule, HSN 8902 fishing vessels, factory ships and other vessels for processing or preserving fishery products and as per Sl.No.252 part of goods of heading 8901, 8902, 8904, 8905, 8906 and 8907 falling under any chapter ate taxable at the rate of 5% GST. Propeller, Shaft/SS road, Gun metal bush/bearing, Stuffing box, Brass Tube/SS Tube, Rudder Shaft and Blade, Sea Cork/Water Strainer, GM Gate Valve, MS Pipe, Propeller Nut/GM Nut, Coupling, SS Rods Square, SS Flat, GM Gland and Ring and MS Plate used as parts of fishing / floating vessels come under the HSN Code 8902 and are taxable @ 5% under serial No.252 of First Schedule of the Notification No .01/2017 Central (Rate) dtd.28-06-2017.

Summary

Issues involved:
Classification of goods as 'part of fishing vessels' under HSN Code 8902 and their taxability at 5% GST.

Analysis:
The case involved M/s. Gurudev Metal Industries seeking an advance ruling on various items customized for fishing vessels and boats. The items in question included propellers, shafts, bearings, stuffing boxes, tubes, gates, valves, nuts, couplings, rods, flats, glands, and plates used in manufacturing fishing or floating vessels. The firm's authorized representative highlighted that these items are exclusively used for manufacturing fishing boats and vessels.

The ruling authority examined the details provided and referred to previous orders to determine the taxability of such items. It was noted that previous rulings had classified commodities like marine propellers, rudder sets, stern tube sets, and propeller shafts used in fishing floating vessels under Entry 252 of the First Schedule, taxable at 5% GST. Additionally, notifications and orders specified that parts of fishing or floating vessels falling under HSN Code 8902 are taxable at 5% GST.

Based on the observations and precedents, the ruling authority issued a ruling classifying the mentioned goods as 'part of fishing vessels' under HSN Code 8902. It was determined that these items are taxable at 5% GST (2.5% CGST + 2.5% SGST) under serial No. 252 of the First Schedule of Notification No. 01/2017 Central Tax (Rate) dated 28-06-2017. The ruling clarified the tax treatment for propellers, shafts, bearings, stuffing boxes, tubes, gates, valves, nuts, couplings, rods, flats, glands, and plates used in fishing or floating vessels, providing clarity for M/s. Gurudev Metal Industries regarding the applicable tax rate for their manufacturing activities.