Page 159 - GSTL_6th August 2020_Vol 39_Part 1

2020 ] IN RE : HEAVY VEHICLES FACTORY 85
(5) If the vendor is supplying parts under an HSN code other than 8710
00 00, is it necessary that it has to be supplied under the same HSN
code on what the vendor is charging?
The Applicant has submitted the copy of application in Form GST ARA-01 and
also submitted a copy of Challan evidencing payment of application fees of
Rs. 5,000/- each under sub-rule (1) of Rule 104 of CGST Rules, 2017 and SGST
Rules, 2017.
2. The Applicant has stated that their main activity is manufacturing
Tank and Tank Parts. Tank is completely assembled in HVF, whereas some parts
of Tank are manufactured separately in HVF and some parts of Tank are pro-
cured from outside vendors on the specification given by HVF.
2.1 The applicant is of the view that the HSN code for Tank is under the
Tariff Item “8710 00 00 - Tank and other armoured fighting vehicles, motorized,
whether or not fitted with weapons and parts of such vehicles” under “Section
XVII-Vehicles, Aircraft Vessels and associated transport equipments” and liable
to tax @ 12% GST as per GST tariff for Goods with the HSN code. The description
of goods in the HSN Code 8710 00 00 includes parts of such vehicles as well. At
the same time, in the explanatory notes to Section XVII in point No. 2, it is given
that, the expression “Parts” and “Parts and accessories” do not apply to the cer-
tain articles, whether or not they are identifiable as for the goods for this section.
In view of the above, they are doubtful of whether which parts will be coming
under HSN 8710 00 00 and which parts will not be coming under this code.
Hence, the applicant has sought Advance Ruling to clarify which parts will be
covered under HSN Code 8710 00 00. They have also emphasized that the parts
and accessories manufactured by them or supplied by outside vendor, all are
specifically designed and is not used in any other product.
3. The applicant was heard on 7-8-2018. Shri H.S. Manoharan, Cost Ac-
countant and Shri Muthusamy Murugesan, Junior Works Manager of the appli-
cant Company appeared for the hearing. They stated that the parts listed in their
application are manufactured by their vendors and these specifically went for
Tank T-90, T-72. However, some of the parts may be falling under the exemption
to Chapter Note 8710 00 00. They undertook to submit a write-up and technical
literature, drawings of each part along with a copy of recent Supreme Court
judgment within 2 weeks.
3.1 The applicant vide their Letter Lr. No. HVF/MC/040/GST/
Advance Ruling/2018-19, dated 15-9-2018 furnished photographs of the follow-
ing spare parts :
Accumulator Assembly; Angle Piece; U Drill; assembly Bracket; Axial
Bearing; Bond Assembly; Bearing Bush; Bellows; Casing Assembly;
Clamp Assembly; Clip assembly; collar Assembly; Fanuc Fuse; Flange;
Diode; Endmill; Fixture for Assembly; Hinge Assembly; Hose Assembly;
Latch Assembly; Mandrel Assembly; Nozzle Assembly; Milling Fixture;
Thyristor; Yoke Assembly; Wedge; Tube Assembly; Armature Assembly;
Armour Plates; Fixture for Assembly; Boss Assembly; Connector Assem-
bly; Gasket Assembly; Bracket Assembly; Boss Assembly; Rib Assembly;
Shaft Assembly; Sleeve Assembly.
The applicant however did not furnish any write-up and technical literature or
the decision of the Hon’ble Supreme Court mentioned by them.

GST LAW TIMES  6th August 2020  159