Classification of goods— In the instant case, the applicant is an entity engaged inter-alia in the business as an importer of spare parts of electrically operated vehicles. The applicant intends to enter into the business of manufacturing and reselling of electrically operated three wheeled vehicles in the state of West Bengal.

Questions sought for advance ruling are as follows—

1) Whether a three-wheeled electrically operated vehicle, commonly known as e-rickshaw, when sold without battery is classifiable as an “electrically operated motor vehicle’ under HSN 8703?

2) In case where the answer to question No 1 is in negative, what shall be the classification and the rate of tax?

The argument of the applicant in this regard is that the e-rickshaw which the applicant intends to manufacture would use only electric motor for propulsion whose traction energy is supplied exclusively by batteries installed in the vehicle.

The applicant contends further that use of internal combustion engines (ICEs) is another way used for propulsion of diesel/petrol driven vehicles and the electric motor used in an electric vehicle is not an engine.

Held that— 

A three-wheeled electrically operated vehicle, commonly known as e-rickshaw, when supplied without battery is also classifiable as an “electrically operated motor vehicle’ under HSN 8703.