The marine pressure tight cables and non-pressure tight cables supplied to the Indian Navy are essential and integral parts of the submarine warship and hence the benefit of reduced rate of GST of 5% is applicable.
Classification of goods— The moot question here is to decide whether the Marine-Pressure & Non-Pressure Tight Cables are essential and integral parts of the submarine warship or otherwise because GAAR in their Ruling has ruled that the said goods are not essential and integral parts of submarine warship. Therefore, Appellant is not eligible for GST rate @ 5% in terms of Sr. No. 252 of Not. No. 11/2017-CT (Rate) dated 28.06.2017.
There is no separate tariff item as ‘parts of ship’ under Chapter 89 of First Schedule to Customs Tariff Act, 1975 thus meaning of the term, parts of goods could then be adopted from its meaning in common parlance.
The use and application of the Marine-Pressure & Non-Pressure Tight Cables clearly suggest that these cables are very much essential and integral parts of the submarine warship as such these cables are used ONBOARD warship and without these cables all the essential equipment would be rendered nonoperational and submarine warship would be ineffective during war operation. Hence, Marine Pressure Tight cable and non-pressure tight cable are integral and essential for the functioning of the submarine warship.
Held that— the marine pressure tight cables and non-pressure tight cables manufactured and supplied by the applicant to the Indian Navy are essential and integral parts of the submarine warship and hence the benefit of reduced rate of GST of 5% is available to the appellant as per Sr. No. 252 of Notification No.01/2017-Integrated Tax(Rate) dated 28.06.2017.
The marine pressure tight cables and non-pressure tight cables supplied to the Indian Navy are essential and integral parts of the submarine warship and hence the benefit of reduced rate of GST of 5% is applicable.
Classification of goods— The moot question here is to decide whether the Marine-Pressure & Non-Pressure Tight Cables are essential and integral parts of the submarine warship or otherwise because GAAR in their Ruling has ruled that the said goods are not essential and integral parts of submarine warship. Therefore, Appellant is not eligible for GST rate @ 5% in terms of Sr. No. 252 of Not. No. 11/2017-CT (Rate) dated 28.06.2017.
There is no separate tariff item as ‘parts of ship’ under Chapter 89 of First Schedule to Customs Tariff Act, 1975 thus meaning of the term, parts of goods could then be adopted from its meaning in common parlance.
The use and application of the Marine-Pressure & Non-Pressure Tight Cables clearly suggest that these cables are very much essential and integral parts of the submarine warship as such these cables are used ONBOARD warship and without these cables all the essential equipment would be rendered nonoperational and submarine warship would be ineffective during war operation. Hence, Marine Pressure Tight cable and non-pressure tight cable are integral and essential for the functioning of the submarine warship.
Held that— the marine pressure tight cables and non-pressure tight cables manufactured and supplied by the applicant to the Indian Navy are essential and integral parts of the submarine warship and hence the benefit of reduced rate of GST of 5% is available to the appellant as per Sr. No. 252 of Notification No.01/2017-Integrated Tax(Rate) dated 28.06.2017.