Classification of goods— The present appeal has been filed against the Advance Ruling issued by the Authority for Advance Ruling, Andhra Pradesh.

The main issue to be decided is the classification and the relevant HSN code of the proposed supply of goods i.e,,the Submarine Fired Decoy System (SFDS) supplied by the appellant.

It is the contention of the appellant that the proposed supply of Submarine Fired Decoy System (SFDS) is classifiable as 'parts of submarine' under Chapter Heading 8906 and, therefore, attract a GST rate of five (5%) by virtue of entry no. 252 of Schedule I in Notification No. 1/2017-Integrated Tax (Rate) dated 28.07.2017. But the lower authority has taken up a different view classifying itunder SI.No.434 under Chapter/Heading/Sub-heading/ Tariff Item 9306 under Schedule III of Notification No. 1/2017 - Central Tax (Rate) dt: 28.06.2017 attracting tax rate of 18%.

The submarines under discussion pertain to the Indian Navy and are basically used for warfare. A submarine, when used as a warship, is equipped with a torpedo launching system as well as a decoy system.

Held that— This authority differ with the ruling of the Advance Ruling Authority and hereby modify the same and hold that the SFDS is classifiable as 'parts of Submarine' falling under Chapter 8906 and consequently attract a GST rate of five (5) percent, by virtue of entry No.252 of Schedule I in Notification No. 28.06.2017.