Maharashtra & Rajasthan Authority of Advance Ruling under GST

Maharashtra AAR: Electric Overload Travelling Grab Crane classifiable under HSN 84261100 taxable at 5% IGST

• Maharashtra AAR held that ‘Electric Overload Travelling Grab Crane (EOT Grab Crane)” to be supplied for use in the waste-to-energy project gets covered by Sl. No. 234 of Schedule I of Notification No. 1/ 2017 dated June 28, 2018 – Integrated Tax (Rate) as ‘Renewable energy devices and parts for the manufacture of waste to energy plants/ devices’, liable to 5% IGST.
• The AAR explained that to avail benefit of reduced IGST @ 5% under Sl. No. 234 of Notification No. 1/2017 applicant has to satisfy 2 conditions – goods must be covered by chapter heading 84,85 or 94 and goods should satisfy the description ‘Renewable energy devices and parts for their manufacture’.
• It held that the applicant satisfies the first condition as the goods are covered under chapter 84, classifiable under Tariff Heading 84261100 as ‘overhead travelling cranes on fixed support’ since it is attached to the main plant at the project site.
• Further, perusing the purchase order, details of commercial terms, drawings, designs etc., and the AAR remarked that “EOT Grab Cranes is an integral device cum part of waste to energy plant”.
• The AAR concluded that EOT Grab Cranes are an integral part of Waste to Energy Plant project for manufacturing and generation of the end product of electricity which clearly falls under serial no. 234 of Schedule of notification 1/2017–Integrated Tax (Rate).

Maharashtra AAR: Parts/equipment installed or fitted on ships imported by ‘ship repairing unit’ classifiable basis ‘nature of use’

• Maharashtra AAR ruled on the classification of goods/spares/parts/equipment (installed or fitted on ships) supplied on ships as “Parts of goods of headings 8901, 8902, 8904, 8905, 8906, 8907”;
• The AAR noted the contention of applicant, registered with Directorate General of Shipping (DGS), Govt. of India as “ship repairing unit” (SRU), that it imports navigation, communication, lifesaving and firefighting equipment, and their associate spares on payment of applicable import duties which are integral part of a ship without which ship cannot sail and considered seaworthy;
• The AAR observed that classification of goods under Sr. No. 252 would depend solely on nature of use to which goods are put to;
• It opined that items i.e. Global Positioning System, Echo Sounder, Radio Detecting & Ranging, Electronic Charts Display, Gyroscope, are essential parts of a ship/vessel without which ship would not be complete and would not exist, would be eligible for concession rate of 5% GST under entry 252 of Schedule I of CGST Notification No. 1/2017-Central Tax (Rate)/Integrated Tax (Rate);
• However, other parts i.e. automatic identification system, Voyage Data Recorder, Non-directional Beacon, Sound Navigation and Ranging, Walkie Talkie will not be eligible for concessional rate of duty since said equipment cannot be considered as essential parts of a ship.

Rajasthan AAR: Ramming Mass taxable at 18% as ‘refractory material’, Quartz powder obtained by crushing Quartz stone taxable at 5%

• Rajasthan AAR held that ‘Ramming Mass’, used in the lining of induction furnaces, being a Refractory Material is classifiable under HSN code 3816 and would attract 18% GST;
• The AAR remarked that, since no refractory binder is added to the said product, same is not covered under heading 3816;
• It further, held that ‘Quartz powder’ obtained by crushing Quartz stone merits classification under HSN code 2806 taxable at 5% GST.