Page 164 - GSTL_20th August 2020_Vol 39_Part 3

378 GST LAW TIMES [ Vol. 39
dicates that they have no nexus. It is true that a tug by itself to
make itself propelled could have machinery installed. Where-
as, Machinery means a group of machines combined together
to make a task easy.
While denying Exemption of payment of duty to Tugs and barges, Hon’ble Tri-
bunal in the case of Shipping Corporation of India Ltd. v Commr. of Cus. (Import),
Mumbai reported in 2014 (312) E.L.T. 305 (Tri. - Mumbai), categorically, held that
they are not machinery, equipment or tools. In an appeal to High Court in the
case, the Court ratified the same and hence a tug is not a machinery, equipment
or tools independently but considered to be a vessel.
8. In this context, we are of the opinion that the Tug Jupiter let out by
the applicant to RIL on charter basis is classifiable under Sl. No. 10 of Heading
9966, vide Notification No. 1/2018-I.T. (Rate), dated 25-1-2018 read with Notifi-
cation No. 8/2017-I.T. (Rate), dated 28-6-2017.
RULING
Question : The rate of IGST on vessel charter hire charges of Tug Jupiter
let out on rent to RIL by the applicant?
Answer : Classifiable under Sl. No. 10 of Heading 9966, vide Notifica-
tion No. 1/2018-I.T. (Rate), dated 25-1-2018 read with Notifi-
cation No. 8/2017-I.T. (Rate), dated 28-6-2017 as amended
from time to time attracting tax rate of 5%, subject to ful-
filling of the conditions attached to it.
_______

2020 (39) G.S.T.L. 378 (A.A.R. - GST - M.P.)
BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
MADHYA PRADESH
S/Shri Manoj Kumar Choubey, Member (SGST) and Virendra Kumar Jain,
Member (CGST)
IN RE : V.E. COMMERCIAL VEHICLES LIMITED
Order No. 09/2020, dated 2-6-2020 in Case No. 25/2019
Bus body building on chassis on job work basis - Supply of service -
Activity of mounting/fabrication outsourced to Applicant by owner/provider
of chassis where ownership of the chassis not belongs to applicant, results in
supply of service under SAC 998881 as “Motor vehicle and trailer manufactur-
ing services” and under Entry No. 26(iv) as “Manufacturing services on physi-
cal inputs (goods) owned by other” - Taxable @ 18% (9% under CGST and 9%
under SGST) - Para 12.2(b) of C.B.I. & C. Circular No. 52/26/2018-GST, dated
9-8-2018. [paras 7.4, 7.5, 8.1]
Ruling in favour of assessee
CASES CITED
Arpijay Fabricators Pvt. Ltd. — 2018 (16) G.S.T.L. 157 (A.A.R. - GST) — Referred ................. [Para 6.2.10]
Automobile Corporation of Goa Limited
— 2018 (18) G.S.T.L. 359 (A.A.R. - GST) — Referred .......................................................... [Para 6.2.10]
DEPARTMENTAL CLARIFICATION CITED
C.B.I. & C. Circular No. 52/26/2018-GST, dated 9-8-2018 ...... [Paras 6.6.1, 6.1.4, 6.1.5, 6.1.6, 7.3, 7.4, 7.5]
GST LAW TIMES  20th August 2020  164