BEFORE THE AUTHORITY FOR ADVANCE
RULINGS FOR THE STATE OF UTTARAKHAND
(Goods and Services Tax)
Present:
Shri Vipin Chandra (Member)
Shri Amit Gupta (Member)
In
Application No: 16/2018-19
Note:- Under Section 100(1) of the Uttarakhand Goods and Services Tax Act, 2017, an appeal against this ruling lies before the appellate authority for advance ruling constituted under section 99 of the Uttarakhand Goods and Services Tax Act, 2017, within a period of 30 days from the date of service of this order.
1. This is an application under Sub-Section (1) of Section 97 of the CGST /SGST Act, 2017 (herein after to be referred as "Act") and the rules made thereunder filed by M/s Opto Electronics Factory, OLF Raipur, Dehradun, Uttarakhand, seeking an advance ruling on the following :
"Classification and Rate of applicable GST on various equipment manufactured for being used exclusively in various Tanks."
2. Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub section (2) of section 97 or sub section (1) of section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant.
3. As per the said subsection (2) of Section 97 of the Act ibid advance ruling can be sought by an applicant in respect of:
(a) Classification of any goods or services or both
(b) Applicability of a notification issued under the provisions of this Act,
(c) Determination of time and value of supply of goods or services or both,
(d) Admissibility of input tax credit of tax paid or deemed to have been paid
(e) Determination of the liability to pay tax on any goods or services or both
(f) Whether the applicant is required to be registered
(g) Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both within the meaning of that term.
In the present case, applicant has sought advance ruling in respect of leviability of GST, if any, for the following -
Therefore, with the instant application seeking classification of goods, in terms of Section 97(2)(a) & 97(2)(e) of CGST/SGST Act, 2017, the present application is hereby admitted.
4. Accordingly opportunity of personal hearing was granted to the applicant on 11.01.2019. Shri Rajesh Gupta, Chartered Accountant, on behalf of the applicant, appeared for personal hearing on the said date. He submitted documents for count of clarification given in advance ruling sought which were taken on records.
5.1.In the present application, applicant has sought advance ruling for the following:
'Classification and Rate of applicable GST on various equipment manufactured for being used exclusively in various Tanks."
5.2.Before going into the details of the instant question on which the ruling has been sought by the applicant, it is important to go through the reason behind the ruling sought by the applicant on the said question as per his application.
In this context, we observe that the applicant, one of the unit of Ordinance Factory Board, Ministry of Defence, Government of India, is engaged in manufacture and repair of various types of 'Sight Vision Equipment' exclusively used in various types of Tanks viz. BMP-II Tank/ T-72 Tank /T-90 Tank etc. Since the products were exclusively manufactured for Armed Forces for being used in Tanks, therefore, there was no indirect tax till 31.05.2015, however, w.e.f. 01.06.2015 Excise duty was imposed on the said products. Since the items manufactured stood specifically manufactured for being used in Tanks only, therefore, the said items were classified under CETH 8710 0000 and the applicant continued to discharge the burden of Central Excise duty as applicable under the said tariff heading.
Further, w.e.f. 01.07.2017, Central Excise duty got subsumed in GST and even after implementation of GST, the applicant continued to classify the said item under the HSN 8710 and discharged the burden of GST @ 28%. Once again, w.e.f. 15.11.2017, the rates of GST were rationalized and the GST applicable on the said HSN 8710 stood reduced to 12% and since then, the applicant were duly charging the burden of GST @ 12%.
Now, the applicant vide their application for advance ruling have sought clarification on rate of GST leviable on various equipments exclusively manufactured by them which are further being used in Armed Forces Tanks.
5.3. In this regard, we observe that the applicant has ever classified their products
i.e. "Sight Vision Equipment' exclusively used in various types of Tanks viz. BMP-II Tank/ T-72 Tank /T-90 Tank etc. under chapter 8710 and accordingly, has paid tax to the Government on supply of these products.
Whereas, on going through the chapter 87 of the GST tariff Act, we find that it relates to the goods viz. 'Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof and the corresponding chapter sub-heading 8710, which is reproduced as under -
In view of the above, we opine that the applicant has ever mis-classified their products i.e. "Sight Vision Equipment' as a part of armoured vehicles i.e. tanks.
5.4.We observe that the products manufactured and reapired by the applicant i.e. 'Sight Vision Equipment' is nothing but an 'optical instruments' used in various types of armoured tanks for ease of sight visions of the driver to use weapons fitted with these tanks.
In this context, on going through the GST Tariff, we find that the optical instrument' are covered under Chapter 90 under Section XVIII of the GST Tariff Act. As per chapter note 4 of the Chapter 90, which reads as under -
"4. Heading 9005 does not apply to telescopic sight for fitting to arms, periscopic telescope for fitting to submarines or tanks, or to telescope for machines, appliances, instruments or apparatus of this Chapter or Section XVI; such telescopic sights and telescopes are to be classified in heading 9013."
We find that the said products i.e. 'Sight Vision Equipment', manufactured and repaired by the applicant for exclusive use in various types of Armoured Tanks, will be classified under HSN code 9013 of the GST tariff.
Further, to determine the rate of GST leviable on supply of these products i.e. 'Sight Vision Equipment', the corresponding relevant chapter sub-heading 90131090 of the Chapter heading 9013 of the GST tariff, is reproduced as under -
RULING
In view of the above, we hold that the various 'Sight Vision Equipments' manufactured and repaired by the applicant for further exclusive use in armoured tanks will be classified under HSN code 9013 of the GST Tariff Act and accordingly, as per chapter sub-heading 90131090, supply of these various equipments will attract GST at the rate of 18% (CGST @ 9% + SGST @ 9%).