9911796707
TMI Blog2024 (9) TMI 1283X X X X Extracts X X X X X X X X Extracts X X X X ..... to be decided as to whether the subject equipment s which were declared as ship spares for repairs of ocean going vessels are covered by the description of goods under SI. No. 227 of table annexed to notification No 23/1998-Cus. As is evident, the facts of the case the question raised being different, the reliance placed by the applicant is not tenable, as far as the present dispute is concerned. Thus, as far as classification of the goods when supplied by the applicant as is mentioned in Annexure l-A is concerned, it would not change i.e. the classification would remain same as mentioned in the bill of entry filed before Customs. The goods when supplied by the applicant, post importation would be classified under the same chapter, heading, sub heading and tariff item under which it was classified by Customs and on which IGST was discharged during the course of import of the said goods. - KAMLA SHUKLA AND AMIT KUMAR MISHRA, Member Present for the applicant : Shri Imtiyaz Kaiyum Barvatiya, Shri Yadnesh Vasudeo and Shri Onali M Modi, CA. Brief facts: M/s. Imtiyaz Kaiyum Barvatiya, Madina Masjid Road. Soni Bazaar. Upleta, Rajkot. Gujarat-360490, is engaged in the business of sale a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ming its essential function and therefore would be part of a ship. H MF/HF Medium/High Frequency Communication Used for long range communication Is an essential part of ship and without it the ship would not be performing its essential function and therefore would be part of a ship. I VHF Very High frequency Used for short range speed communication Is an essential part of ship and without it the ship would not be performing its essential function and therefore would be part of a ship. J SAT/C/FBB Satellite Communication/ fleet Broad band Used for communication between ship and shore Is an essential part of ship and without it the ship would not be performing its essential function and therefore would be part of a ship. K SSAS Ship Security Alert System. Used for transmitting distress signal to land station Is an essential part of ship and without it the ship would not be performing its essential function and therefore would be part of a ship. L NAVTEX Navigational Telex Used for receiving navigational weather and other warnings Would be in the nature of an additional equipment and therefore cannot be considered as part of a ship. M EPIRB Emergency Positioning Indicating radio Beaco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under tariff head 8479 captioned as Ship Spares and is hence taxed at the rate of 18%. 5. The applicant has further stated that they receive the purchase orders for such parts/spares/equipment from customers wherein the customer mention the applicable GST rate at 5% on the reasoning that these goods form part of ship. The customers feel that the goods are covered under Sr. No. 252 of notification No. 1/2017-Central Tax which covers parts of goods of headings 8901,8902, 8904, 8905, 8906, 8907. 6. Based on the information from customers, market trend, critical nature of goods, the subject goods being essential part of ship to make it sea worthy and also the fact that it is legally obligatory for ships to have fitment/installation of all such spares and equipment to qualify as seaworthy, the applicant feels that the goods are parts of various types of ships and vessels falling under headings 8901, 8902, 8904, 8905, 8906, 8907 are therefore, eligible for benefit of entry no. 252 of notification No. 1/2017-Central Tax. 6.1 Chapter headings 8901,8902, 8904, 8905. 8906 and 8907, covers the following viz Heading 8901 is for cruise ships, excursion boats, ferry boats, cargo ships, barges ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4, 8905, 8906, 8907 under entry 252 of Schedule I of GST Notification No. 01/2017-Central Tax (Rate) dated 28.6.2017 as amended and is liable to GST @ 5% (CGST-2.5% and SGST-2.5%) or IGST @ 5% or not. 9. Personal hearing was granted on 28.5.2024 wherein Shri Imtiyaz Kaiyum Barvatiya, Shri Yadnesh Vasudeo and Shri Onali M Modi, CA appeared on behalf of the applicant. On being asked it was informed that they are now availing the benefit of the notification ibid are discharging IGST @ 5%. They also relied upon the AAR ruling in the case of M/s. A S Moloobhoy Private Limited dated 18.7.2018 passed by the Maharashtra Authority for Advance Ruling. Revenue s Submission: 10. Joint Commissioner, CGST Rajkot Commissionerate vide letter No. GEXCOM/TECH/MISC/1206/2024-TECH-O/o COMMR-CGST-RAJKOT submitted its comments as follows: On the plain reading of circular No. 52/26/2018-GST dated 9th August. 2018, it appears that supply of goods as parts of the goods of headings 8901, 8902, 8904, 8905. 8906, 8907, will be classifiable under Entry No. 252 of Schedule-I of GST Notification No. 01/2017-Central Tax (Rate) dated 28th June 2017 and will be liable to GST @ 5% (CGST-2.5% and SGST-2.5%) or classi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person, and which is registered under the Trade Marks Act, 1999. (iii) Tariff item Heading Sub-heading and Chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (Act No.51 of 1975). (iv) The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (Act No. 51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification. THE GENERAL RULES FOR THE INTERPRETATION OF IMPORT TARIFF Classification of goods in this Schedule shall be governed by the following principles: 1. The titles of Sections, Chapters and sub-chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the following provisions: 2. (a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assified as vessels of a particular kind, if they have the essential, character of that hand of vessel in other cases, such goods are classified in head: 8906 Contrary to the provisions relating to the transport equipment falling in other Chapter of Section XVII. This chapter excludes all separately presented parts (other than hulls) and accessories of vessels or floating structures, even if they are clearly identifiable as such part, and accessories are classified in the appropriate headings elsewhere in the Nomenclature. for example (1) The parts and accessories specified in Note 7 to Section XVII. (2) Wooden oars and paddles ( heading 44.21 ). (3) Ropes and cables of textile material ( heading 56.07 ). (4) Sail ( heading 63.06 ). (5) Mats, hatchways, gangways, rails and bulkheads for ships or boats and pans of hulls, having the did character of metal structures of heading 73.08 (6) Cables of iron or steel ( heading 73.12 ) (7) Anchors of non or steel ( heading 73.16 ) (8) Propellers and paddle wheels ( heading 84.87 ). (9) Rudders ( headings 44.21, 73.25, 73.26, etc ) and ether steering or rudder equipment for ships or boats ( heading 84.79 ). 15. from the facts, we find that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has agreed to the classification of the imported goods as done by the proper officer of Customs. 18. On the aforementioned background, we find that the applicant is before us with an averment, that though the goods have been classified by Customs under various tariff items [as is mentioned in column 4 of the table above in respect of the bills of entry, the copies of which has been submitted vide email dated 29.7.2024] he now feels that consequent to the importation while undertaking further supply of the said goods, it should be classified under the heading 8901, 8902. 8904, 8905, 8906 8907 and thereby be eligible for benefit of Sr. No. 252 of notification No. 1/2017-CT (R) dated 28.6.2017. Availing the benefit of the said exemption notification, will make the supply leviable to GST @ 5%. 19. The question before us, therefore, is whether a change in classification is permissible. This has to be seen in background of a pointed question to the authorized representative during the course of personal hearing to whether the goods were sold as such, to which he replied in affirmative. 20. We do not agree with the averments raised by the applicant that the classification can be changed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch to the customers and that no further processing is done on the imported goods and that the appellant company dispatched those goods directly, in the condition as is being imported. The said statement furnished by the appellant No. 2 clearly shows that the disputed goods were intended for specific use, i.e. for furniture fittings. Thus, the imported goods in question, should appropriately be classifiable under CTH 830219090, instead of CTH 76042990, as claimed by the appellant inasmuch as the former chapter only deals with the fittings or accessory of furniture, which the appellant had imported in this case. Even otherwise, it is a trite law that classification of a product is to be done by consignor only, that classification cannot be changed or questioned at consignee s end as has been held in the case of Steel Authority of India Ltd. [(2022) 382 ELT 10 (SC)] 22. The applicant states that the goods/spares which consequent to its imports are supplied on ships are mostly essential part of ship to make it sea worthy. As far as this claim goes, we are also mindful of the HSN explanatory notes of chapter 89 under which the applicant wants his goods to be classified after the imports ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
