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TMI Blog2021 (8) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... icle to mean vehicles which run solely on electrical energy derived from an external source or from one or more electrical batteries fitted to such road vehicles and shall include e-bicycles . That means it is a type of electric vehicle (EV) that exclusively uses chemical energy stored in rechargeable battery packs, with no secondary source of propulsion (e.g. hydrogen fuel cell, internal combustion engine, etc.). An Electric Vehicle with battery pack uses electric motors and motor controllers instead of internal combustion engines (ICEs) for propulsion. It derives all power from battery packs and thus has no internal combustion engine etc. - thus, 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. 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. - 01/ODISHA-AAR/2021-22 - - - Dated:- 15-4-2021 - SRI GOPAL KRISHNA PATI, IRS, AND SRI DILLIP SATPATHY, MEMBER Present for the Applicant in the personal hearing. : Chandrasekhar Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bicycles . 2.4 The subject goods in question is operated from the power generated by battery, supplied to the motor to rotate the wheels and also the vehicle in question does not have an internal combustion engine or gear box, etc. which is typical 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 fuel i.e. diesel or petrol. When a sale of the vehicle running on fuel is done with empty tank, it does not change the nature of the goods supplied. It is still a vehicle. Drawing an analogy t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e commissionerate along with a copy of application and the written submission of the applicant). The applicant appeared hearing through its Advocate Shri Chandrasekhar Chand. During P.H., Shri Chandrasekhar Chand, Advocate re-iterated the submissions already furnished in the annexure to the application. He explained/submitted the details of activities being undertaken or proposed to be undertaken by the applicant. Discussion findings 4.0 We have considered the submissions made by the applicant in their application for advance ruling as well as the arguments advanced by Sri Chandrasekhar Chand, Advocate during the personal hearing. We also considered the issues involved on which advance ruling is sought by the applicant and relevant facts. We find that the question before us essentially pertains to the rate of GST applicable on supply of electrically operated vehicles without fitting of battery and the applicability of Notification issued under the provisions of GST Act. We, therefore observe that the issue before us is squarely covered under Section 97(2) of the CGST Act, 2017 and therefore we admit the application for consideration. 5.0 We need to answer the only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal 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 taking a final opinion, we need to go through the definition of electrically operated vehicle . Explanation to Entry No.242 A of schedule-1 to notification no.01/2017-central tax (rate), dated 28.06.2017, as amended from time to time defines the term electrically operated vehicle to mean vehicles which run solely on electrical energy derived from an external source or from one or more electrical batteries fitted to such road vehicles and shall include e-bicycles . That means it is a type of electric vehicle (EV) that exclusively uses chemical energy stored in rechargeable battery ..... X X X X Extracts X X X X X X X X Extracts X X X X
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