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TMI Blog2022 (1) TMI 948X X X X Extracts X X X X X X X X Extracts X X X X ..... ods are taxable initially at the rate of 28% and later at a reduced rate of 18% - the Entry 252 of the Schedule I of Notification 01/2017, dated.28-06-2017 as amended i.e., parts of goods of headings 8901, 8902, 8904, 8905, 8906 8907 falling under any chapter are made eligible for a concessional rate of tax of 5% under CGST SGST. The specifications for one cable i.e., CAT6 (PT-10) cable has in its scope the development of communication and signalling cables for marine applications and at clause 1.2 of these specifications it is mentioned that these cables are required for safe transmission of electrical energy between selected devices or points. These narrations in the purchase order indicate that certain cables are used to conne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that these goods are required for ATV program - When the above (2) evidences are read in tandem, it is clear that the appellant is supplying special types of cables to the Naval authorities. The supplies made by the applicant to Defence Machinery Design Establishment (DMD) for the purpose of use in warship building of Indian Navy will qualify for the concessional rate of tax of 5% under CGST SGST. - A.R.Com/12/2019 TSAAR Order No.03/2022 - - - Dated:- 21-1-2022 - SRI B. RAGHU KIRAN, AND SRI S.V. KASI VISWESWARA RAO, MEMBER [ORDER UNDER SECTION 98(4) OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 AND UNDER SECTION 98(4) OF THE TEALANGANA GOODS AND SERVICES TAX ACT, 2017.] ****** 1. M/s. Radiant Corporation Private Limi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt is desirous to clarify the goods supplied by them are eligible for a concessional rate of tax under Sl.No.252 read with Sl.No.250 of Schedule I in Notification No. 01/2017 dated: 28.06.2017. 5. Questions raised: a. What is the applicable rate of CGST on the supply of pressure tight cables, non-pressure tight cables and special cables for use in S4 submarine supplied by the Applicant to DMDE, Ministry of Defense, Govt of India. b. Whether these goods would be considered to be as parts of warships and accordingly classifiable under Sl.No.252 read with Sl.No.250 of Schedule I in Notification No. 01/2017 dated: 28.06.2017. 6. Personal Hearing: The Authorised representatives of the unit namely Ramachandra Murthy, CA K. Ja ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In support of their contention that they are supplying cables to warships, the applicant submitted purchase orders of Defence Machinery Design Establishment (DMD), Secunderabad with purchase order no. HCL/85/SPL Cables (06 TYPES) S4/236 dated: 17.06.2019 and HCL/85/PT-10 (04 TYPES) S4/224 dated: 26.03.2019. Perusal of the work orders reveals that the applicant is entrusted with manufacture certain types of special cables by the DMD. The purchase order does not mention that these will be specifically used in the manufacture of warships or as spare parts in warships. However, at clause 4.2 of 1st purchase order a passing reference is made wherein it is stated that Only those Indian Standards, which are relevant for Naval ships and submarine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eaning and import of this word has to be obtained from the catena of case law decided by the Hon ble Courts of India. In this connection, law declared by the Hon ble Apex Court of India in the case of Collector of Central Excise, Calcutta-II and Ors. vs. Eastend Paper Industries Ltd. and Ors. (29.08.1989 - SC) AIR 1990 SC 1893 comes to our aid wherein it was held that anything that enters into and forms part of that process must be deemed to be raw material or component part of the end product and must be deemed to have been used in completion or manufacture of the end product. In the present case, the applicant has submitted certain utilization certificates from the Naval authorities. The certificates categorically state that the go ..... X X X X Extracts X X X X X X X X Extracts X X X X
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