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TMI Blog2021 (12) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... arts of marine engines will not be covered under the said Sr. No. 252 of Notification No. 1/2017-CT.(Rate), dated 28-6-2017. Whether GST rate of 5% can be charged on supply of marine engines of heading 8407 and heading 8408 and/or their spare parts of heading 8409 when it is supplied for use of defense purpose, patrolling purpose, flood relief and rescue operations being part of heading 8901, 8904, 8905, 8906, 8907? - HELD THAT:- Marine engine, and parts thereof will be covered under Sr. No. 252 of Notification No. 1/2017-C.T.(Rate), dated 28-6-2017, when used in the manufacture of goods falling under 8901, 8902, 8904, 8905, 8906, 8907. Items which do not conform to parts of marine engines will not be covered under the said Sr. No. 252 of Notification No. 1/2017-C.T.(Rate), dated 28-6-2017. - GST-ARA-32/2021-22/B-105 - - - Dated:- 6-12-2021 - SHRI. RAJIV MAGOO, AND SHRI. T.R. RAMNANI, MEMBER No. GST-ARA-32/2021-22/B-105 Mumbai, dt. 06-12-2021 PROCEEDINGS (Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) The present application has been filed under Section 97 of the Central Good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... department falling under HSN 8906. Applicant Submission dated 12.10.2021:- 2.4 S.N. 252 of Schedule I (i.e. 2.5%) of Notification No. 01/2017, covers part of goods under various HSN and following HSN are also included in the same- (i) 8902 (Fishing vessels,- factory ships other vessels for processing or preserving fishery products). (ii) 8906 (Other vessels, including warships and lifeboats other than rowing boats) 2.5 Applicant supplies marine engines and spare parts of these engines to Fishermen (who use their boats for Fishing Operations) and Government Departments (who use their boats for Patrolling and rescue operations). Hence, based on uses of applicant s engines and spare parts, it becomes part of goods covered under HSN 8902 and 8906. Resultantly, applicant s supply is covered under Entry 252 of Schedule I of Notification No 01/2017. 2.6 Further, a clarification was provided in Circular No 52/26/2018-GST regarding applicability of GST on Marine Engine. h was clarified that parts of fishing vessel covered under heading 8902, falling under any chapter (Inclusive Definition) also attracts GST rate of 5%, vide S. No. 252 of Schedule I of the Notific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eliminary e-hearing in the matter was held on 28.09.2021. The Authorized representatives of the applicant, Shri. Ramawatar Sharma, CA and Shri Malay Shroff (Owner) were present. The Concerned officer Shri Sourabh Kumar, Superintendent, CGST CX, Div-II, Range-IV, Mumbai South Commissionerate was also present. 4.2 The application was admitted and called for final e-hearing on 09.11.2021. The Authorized representative of the applicant, Shri. Pratik Sangavi and Shri. Malay Shroff, learned applicant were present. The Jurisdictional officer Shri. Sourabh Kumar, Superintendent, CGST CX, Div-II, Range-IV, Mumbai South Commissionerate was also present. 4.3 We heard both the sides. 05. OBSERVATIONS AND FINDINGS: 5.1 We have perused the records on file, gone through the facts of the case, submissions made by the applicant as well as the department and have examined the matter in detail. 5.2 The applicant has submitted that they are importing Marine Propulsion Engines under HSN Code 8407, 8408 as well as spare parts of marine propulsion engines under HSN Code 8409 and are supplying the same for use as a part of fishing vessels, Police, Defense department, Patrol, flood ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 017-C.T. (Rate), dated 28-06-2017, if supplied to fishing vessels. 5.3.6 Further, the said issue has also been clarified vide the Circular No. 52/26/2018-GST dated 09.08.2018 (also applicable to the instant case), the same is cited as under: 10.1 Applicability of GST on marine engine: Reference has been received seeking clarification regarding GST rates on Marine Engine. The fishing vessels are classifiable under heading 8902, and attract GST @ 5%, as per S. No. 247 of Schedule of the notification No. 01/2017-Central (Rate) dated 28.06.2017. Further, parts of goods of heading 8902, falling under attracts GST rate of 5%, vide S, No. 252 of Schedule I of the said notification. The Marine engine for fishing vessel falling under Tariff item 8408 1093 of the Customs Tariff Act, 1975 would attract a GST rate of 5% by virtue of S. No. 252 of Schedule I of the notification No. 01/2017-Central Tax (rate) dated 28.06.2017. 10.2 Therefore, it is clarified that the supplies of marine engine for fishing vessel (being a part of the fishing vessel), falling under tariff item 8408 10 93 attracts 5% GST. 5.3.7 However, if the impugned goods are supplied for use other than for fishing v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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