Classification of Goods — The appellant have submitted that they are manufacturers and exporters of paint. M/S. Jotun india pvt. ltd. is a supplier, exporter and manufacturer of paint and powder coatings. The appellant has stated that they supply paints that are specially designed for unique conditions. One of the major supplies are ‘marine paints’ which is the impugned product under consideration. Notification No.1/2017 dt.28.06.2017 prescribes the applicable rate of CGST. The paints supplied by the appellant are classifiable under Chapter heading 3208 and 3209 which are covered under Schedule IV of the said Notification and liable to GST @ 28%. However, under the same rate notification, Schedule I which covers goods taxable @ 2.5% CGST has entry No.252 which covers parts (classifiable under any chapter) of goods, falling under heading 8901,8902,8904, 8905,8906 and 8907. It is the contention of the appellant that the marine paints supplied by them are suitable for use by ships and therefore would be covered at Sr.No.252 Schedule I of Notification No.1 of 2017 dt.28.06.2017.

The question therefore before us is whether marine paint can be considered to be a part of headings 8901, 8902, 8904, 8905, 8906, 8907 which are all various types of water vessels.

It was held by the AAR that marine paints supplied by the appellant is not an integral part of the ship and would not be classified under Sr.No.252 of Schedule-I of the Notification No.1/2017. The appellant has therefore filed appeal against the Advance Ruling Order and has reiterated his contention that the marine paints are parts of ships and therefore covered at Sr.No.252 of Schedule-I of the Notification No.1/2017.

Held that— We do not find any reason to interfere with the ruling pronounced by the Advance Ruling Authority—Jotun India Pvt. Ltd., In Re… [2019] 09 TAXLOK.COM 049 (AAAR-Maharashtra)