Page 175 - GSTL_14th May 2020_Vol 36_Part 2

2020 ] IN RE : NEW SPACE INDIA LTD. 277
of ground segment but is essentially a part of space segment and used solely or
principally with the communication satellite falling under Heading 8802 of
Customs Tariff Act, 1975 and not excluded by the terms of Note 2 to Section-
XVII ibid - Moreover, transponders not more specifically classified elsewhere
in the Tariff - Communication Satellite Transponders are appropriately classi-
fiable under Heading 8803 ibid more specifically under Tariff Item 8803 90 00
of Customs Tariff Act, 1975. [paras 6.8, 6.15, 6.19, 6.20, 6.21, 6.22]
Ruling in favour of assesse
CASES CITED
Collector v. M.P. (India) Ltd. — 1997 (95) E.L.T. A142 (S.C.) — Referred ....................................... [Para 5.3]
Collector v. Motor Industries Co. Ltd. — 2003 (152) E.L.T. 36 (S.C.) — Referred .......................... [Para 5.3]
Collector v. MP (I) Ltd. — 1990 (46) E.L.T. 68 (Tribunal) — Referred .............................................. [Para 5.3]
Commissioner v. Insulation Electrical Pvt. Ltd. — 2008 (224) E.L.T. 512 (S.C.) — Referred ........ [Para 5.3]
Eureka Forbes Ltd. v. Commissioner — 2001 (130) E.L.T. 146 (Tribunal) — Referred .................. [Para 5.3]
Modern Communication and Broadcasting Systems Pvt. Ltd. v. Chief Commissioner
— 2009 (245) E.L.T. 199 (Tribunal) — Referred ......................................................................... [Para 5.3]
Motor Industries Company Ltd. v. Collector — 1995 (75) E.L.T. 65 (Tribunal) — Referred ........ [Para 5.3]
Raj Television Network v. Commissioner — 2007 (215) E.L.T. 71 (Tribunal) — Referred ........... [Para 5.3]
U and I System Design Ltd. v. Commissioner — 2007 (218) E.L.T. 603 (Tribunal) — Referred .. [Para 5.3]
REPRESENTED BY : Shri Radha Krishnan D., Director & Authorised
Representative, for the Assessee.
[Order]. - M/s. New Space India Limited, Room No. F01, HSFC Build-
ing, New BEL Road, ISRO Head Quarters, Bengaluru-560094, Karnataka having
GSTIN number 29AAGCN4411P1Z1, have filed an application for Advance Rul-
ing under Section 97 of CGST Act, 2017 & KGST Act, 2017 read with Rule 104 of
CGST Rules, 2017 & KGST Rules, 2017, in form GST ARA-01 discharging the fee
of Rs. 5,000/- each under the CGST Act and the KGST Act.
2. The Applicant is a Limited Company and is registered under the
Goods and Services Tax Act, 2017. They are into the business of Leasing of Satellite
Transponders and sought advance ruling in respect of the following questions :
(1) Whether Leasing of Satellite Transponder which is covered under
SAC Code 997319 be charged at 5% GST as per HSN Code 8803 -
Parts Goods of Heading 8802 (Satellites)?
(2) Whether the applicant can levy GST @ 5% for Leasing of Satellite
Transponder Services which is covered under SAC 997319 as per
HSN Code 8803 - parts goods of Heading 8802 (Satellites) from the
date of commencement of the service - Leasing of Satellite Tran-
sponder?
3. The applicant furnishes the following facts relevant to the stated ac-
tivity :
(a) The applicant stated that they are a commercial arm of Indian Space
Research Organisation (ISRO) and are a Government of India com-
pany (CPSE) under the administrative control of the Department of
Space (DOS). They entered into an agreement MOU with DOS, inter
alia, for leasing of Satellite Transponder capacity to service provid-
ers, as part of the mandate to carry out production and marketing of
space based services.

GST LAW TIMES  14th May 2020  175