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Diesel engine and gear box if supplied for use in fishing vessel, ships, boats etc then the supply will be deemed to be as parts of such vessels and 5% GST will attract

Shanti Prime Publication Pvt. Ltd.

Classification of Goods — Applicant requested advance ruling on the following:

i. As per the Notification No-1/2017, Marine Diesel Engine falling under TSH 8408 of Customs Tariff Act, 1975, as adopted to GST, attracts 28% IGST (14% CGST+14% SGST) as per No. 115 of Schedule IV is correct or not?

ii. As per the Notification No-1/2017, Gear Box falling under TSH 8483 of Customs Tariff Act, 1975, as adopted to GST, attracts 28% IGST (14% CGST+14% SGST) as per Serial No.135 of Schedule IV is correct or not?

iii. Whether the Marine Diesel Engine (TSH 8408) and Gear Box TSH 8483) of Customs Tariff Act, 1975 as adopted to GST can be treated as parts of heading of 8902, 89048905, 8906 and 8907 attracting 5% of CGST + 2.5% SGST) as per Serial No,252 of Schedule I of the Notification No.01/2017 Central Tax (Rate) dated 28.06.2017 or not?

Held that—
1) The Diesel Engines supplied for use in goods falling under heading 8901, 8902, 8904, 8905, 8906, 8907 will be deemed to be parts of vessels / goods falling under the above headings and thereby taxable @5% GST as per Sl No.252 of Schedule I of the Notification No-01/2017 Central Tax (Rate) dated 28.06.2017. If it is used for some other purpose, the applicable tax rate would be 28% GST as per SI. No. 115 of Schedule IV of the said notification.

2) The Gear Boxes falling under TSH 8483 when Supplied for use in vessels / goods falling under heading 8901, 8902, 8904, 8905,8906, 8907 will be deemed to be parts of such goods and thereby would be taxable @5% GST as per Sl No.252 of Schedule I of the Notification No.01/2017 Central Tax (Rate) dated 28.06.2017- If it is used for some other purpose, the applicable tax rate would be 28% GST as per Sl No. 135 of the said notification.

3) The marine diesel engine and gear boxes supplied for use in vessels / goods falling under heading 8901, 8902, 8904, 8905, 8906, 8907 will be deemed to be parts of such goods and thereby taxable @5% GST per Serial No.252 of Schedule I of the Notification No.01/2017 Central Tax (Rate) dated 28.06.2017. If it is used for some other purpose, the applicable tax rate would be as per their respective TSH 8408 and 8483 at the rate of 28% GST as per Sl Nos 115 and 135 of the said notification.—Techno Tradings & Services (P) Ltd., In Re… [2019] 10 TAXLOK.COM 053 (AAR-Kerala)