9911796707
TMI Blog2021 (8) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... 01 discharging the fee of Rs. 5,000/- each under the CGST Act and the SGST Act. 1.0 The Applicant having assigned with GSTIN number 21CIGPP8275G1Z2 sought for an advance ruling in respect of the following question. "Whether fitting of battery is mandatory in two & three-wheeled battery powered electric vehicles (here-in-after referred to as 'the subject goods') while selling the same to the dealers for getting the benefit of 5% GST rate applicable for electrically operated vehicles?" 1.1 At the outset, we would like to make it clear that the provisions of both the CGST Act and the OGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al in the case of a fossil fuel powered vehicle. Hence, it falls within the definition of electrically operated vehicle, as defined above, chargeable to GST @ 5%. 2.5 The only difference between the goods that are supplied with batteries and the ones without batteries is that, battery is not there in the latter case. Otherwise, the goods without batteries are complete in itself to act as an agent of transportation which is propelled by a motor. Once battery is fitted, the vehicles will start functioning. Thus, such goods fits within the definition of 'Electrically operated vehicles' mentioned in entry 242A of Notification No. 1/2017 ibid 2.6 When compared with a normal vehicle (running on fuel), the battery essentially plays the role of f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing compliance to the provisions of CMVR, it states that it is the vehicle manufacturer's responsibility to ensure fitment of same components/ parts/ assemblies etc. before submission of the vehicle for registration. However, the requirement to ensure fitment of the same before applying for registration does not mean that the same must be fitted in the vehicle by the manufacturer while selling the same to the dealers. 2.9 That, pre-fitment of battery in the vehicle before selling it to the dealers has never been the intention of law. The only requirement that needs to be fulfilled is that the vehicle must be one that depends upon batteries for traction energy. Accordingly, the same may be classified as an electrically operated vehicle irre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the only question asked by the applicant that "Whether fitting of battery is mandatory in two & three-wheeled battery powered electric vehicles while selling the same to the dealers for getting the benefit of 5% GST rate applicable for electrically operated vehicles?". In this regard the applicant stated that the difference between the goods that are supplied with batteries and the ones without batteries is that, battery is not there in the latter case. Otherwise, the goods without batteries are complete in itself to act as an agent of transportation which is propelled by a motor. Once battery is fitted, the vehicles will start functioning. Thus, such goods fits within the definition of 'Electrically operated vehicles' mentioned in entry 24 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... classified as a chassis and therefore, it is not classifiable as a vehicle under Sub-heading 8703 of the Tariff Act. But the said Jurisdictional Officer has taken a opposite stand that even without the battery, if the e-rickshaw has a motor fitted on a chassis along with the body and is capable of transporting people, it remains its original character. The chassis of an e-rickshaw is the basic skeletal or structural framework fitted with an axle, motor and other parts. Just because there is no battery, it may not be termed as 'chassis', as there is a body mounted on the chassis, which gives it the characteristic of a vehicle along with the chassis. Therefore, mere absence of the battery may not make an e-rickshaw a chassis. 5.3 Before taki ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if electrically battery operated cars exported, though not fitted with batteries at the time of export, the same is still classifiable 'battery powered road vehicles' and would run on battery when put to use. Hence, we hold that fitting of battery in the vehicle, at or before the time of supply, is not a precondition for the same to be classified as electrically operated vehicle. 6.0 In view of the above, we rule as follows : A two or three-wheeled "battery powered electric vehicle" when supplied with or without battery pack is classifiable under HSN 8703 as an 'electrically operated vehicle' and is taxable @ 5% GST. 7.0 This ruling is valid subject to the provisions under Section 103 (2) until and unless declared void under Section 104( ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
