The Gujarat Bench of the Authority for Advance Rulings (AAR) has held that combined wire rope is not used as part of the fishing vessel and is not eligible for GST at 5 %.
M/S. Shakti Marine Electric Corporation, the applicant is a wholesale dealer for the supply of combined Wire Rope manufactured by M/S Kadambari Steel Wire Rope Pvt.Ltd and M/s Usha Martin India Limited.
The applicant stated that Combined Wire Rope Chapter Heading 73121 has got wide usage in General Engineering, Fishing Vessels and also in General Vessels. Presently the applicant is charging 18% GST on the supply made to their Customers. The applicant is mainly operating for the supply of Combined Wire Rope in the region of Rajkot, Veraval and Saurashtra having a heavy cluster of fishing activities in coastal areas like Veraval, Mangrol and the District of Kutch.
Further stated that the Combined Wire Rope having HSC code 7312 and specification14mm diameter and construction 6xl 9SCF supplied to those Customers for its usage primarily and solely as a part of Fishing Vessels having HSN code 8902.
The applicant has submitted that the goods of any chapter heading used as a part of Fishing Vessels having chapter heading 8902 are eligible for 2.5% CGST as per Sr.No.252 of Schedule -I of Notification No. 1/2017-Central Tax (Rate),2.5% SGST vide corresponding Notification issued by Gujarat State Government and 5% IGST Notification No. 1/2017-ITR.
The authority comprising of Milind Kavatkar and Amit Kumar Mishra observed that Wire Rope was used in various fields such as Mines, Haulage, General Engineering, lift & escalators and Shipping depending upon the requirement and usage of the field which confirms that Wire Rope has no specific/general use in the fishing vessel.
It was observed by the authority that the fishermen required such wire rope for fishing purposes and it has no use in the fishing vessel but it was used to tie the fishing net.
The authority held that “the combined Wire Rope is not a part of the fishing vessel but it is used to tie the fishing net with the vessel, and the impugned goods do not cover under entry No.252 of Schedule-I of Notification No. 1/2017-CT(Rate) dated 28-06-2017 as amended and are not eligible to GST at CGST 2.5% + SGST 2.5% and ICJST 5%.”
R. S. Parmar (Advocate) appeared on behalf of the applicant and Shri Niranjan Singh appeared on behalf of the revenue.
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