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Main Propulsion engine for ships falling under HSN code 8408 1093, Marine Gear box falling under heading 8483 and marine generator falling under 8502 1100 and Marine engine for other applications like pumps falling under sub-heading 8408 10 would be considered as parts of Goods for Chapter 89

Shanti Prime Publication Pvt. Ltd.

Classification of Goods — 1. Please confirm that Main Propulsion engine for ships falling under HSN code 8408 1093, Marine Gear box falling under heading 8483 and marine generator falling under 8502 1100 and Marine engine for other applications like pumps falling under 8408 10 would be considered as parts of Goods for Chapter 89.
2. Further if the all above used in manufacturing of the boat/ ships under chapter 8901 / 8902/ 8904 / 8905 / 8906 / 8907 shall be charged with 5% even if in their respective chapters, the rates of GST are higher. For example, GST for HSN code 8408 10 93 is 28%, but when supplied to shipyards would be 5% and also implied for chapters 8483 and 8502 1100 above.
3. Also the invoice made by the dealer to the shipyard would be made under the respective product chapter, but with only 5%, for example marine main propulsion engines would be made with 5% GST under HSN code 8408 1093 and not 28%. And also implied for chapters 8483 and 8502 1100 above.
4. As a generator manufacturer, when we buy a marine Engine from our principles (Ashok Leyland here) then we could buy under 5% GST with them using HSN code of 8408 1093 and with our letter of undertaking stating that we shall be supplying these Generators to marine Shipyard with Hull number (which is always unique) for that project with shipyard order copy and also a covering letter from the shipyard for the same subject matter and yard number (which is always unique). With all this can we get the supplies from Ashok Leyland at 5% GST?

5. When we have to sell an engine to shipyard for main Propulsion, we buy it from Ashok Leyland. under that context could we buy the engines with our letter of undertaking stating that we shall be supplying these engines to marine Shipyard name and Hull number (which is always unique) for that project and with shipyard order copy and also a covering letter from the shipyard for the same subject matter and yard number (which is always unique). With all this can we get the supplies from Ashok Leyland at 5% GST?
Held that—
Marine engines, Marine gear boxes and Marine generator supplied by the applicant to dealers of shipyard manufacturers are used as Parts of vessels falling under 8901, 8902, 8904, 8905, 8906 and 8907.
It is clear that the applicant can supply the Marine Engine, Marine Gear Boxes and Marine Generators as Parts of headings of 8901, 8902, 8904, 8905, 8906, 8907 as per Sr. No. 252 of Schedule I of Notification No.01/2017-CT (rate) dated 28.06.2017. However, the applicant’s impugned products are covered under different Headings 8408, 8483 and 8502 attracting higher rate of GST.
As the question no.4 and 5 are related to the transaction of supply by M/s. Ashok Leyland, as per the provision of Section 95 and Section 97 of the GST Act, these questions are out of purview of this authority. Hence not answered. — C.S. Diesel Engineering Pvt. Ltd., In Re… [2019] 10 TAXLOK.COM 107 (AAR-Maharashtra)

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