M/s Kanam Industries v/s Shri Vipin Chandra (Member) & Shri Amit Gupta (Member)

Order dated 14/03/18


a) Clarification on interpretation of the term " Three Wheeled Powered Cycle Rickshaw" as provided under Sl. No. 190 of the schedule I to Tariff Notification.

b) Whether there is any difference between an Electric Rickshaw operated by chargeable batteries (E-rickshaw) and Three Wheeled Powered Cycle Rickshaw.

c) Whether inner tubes of butyl rubber used in E-Rickshaw would fall within the meaning of term - " Three Wheeled Powered Cycle Rickshaw" and classification thereof.


a) Powered cycle rickshaw would not cover an Auto Rickshaw and would only cover an ordinary Cycle rickshaw to which a motor or petrol engine has been fitted.

b) Electric Rickshaw is not a Powered Cycle Rickshaw because:-

i) It is not a Cycle Rickshaw and  It does not have pedals which is prerequisite for powered cycle Rickshaw.

ii) It is powered solely by electric motor which is not auxiliary in nature.

iii) It is a Motor Vehicle under " Motor Vehicle Act" and has to be registered with Local Transport Authority.

c) Tyres used in E-Rickshaw are not tyres of Powered cycle rickshaw and hence they are classified under chapter heading 4013 of GST Tariff 2017 and attract GST @ 28%.

Source:- http://gstcouncil.gov.in/sites/default/files/Advance-rulings/01-2017-18_Dtd_14-03-18_Uttrakhand.pdf


2. M/s Indo German Brakes (P) Ltd. v/s Shri Vipin Chandra (Member) & Shri Amit Gupta (Member)

Order dated 14/03/2018


Determination of classification and rate of tax on Disc Brake Pads & Brake Shoes being used in automobiles.


Disk Brake Pads and Shoes are classified under chapter heading 8708 and taxable @ 28%.



3. Divisional Forest Officer, Dehradun  v/s Shri Vipin Chandra (Member) & Shri Amit Gupta (Member)

Order dated 20/04/18

Issues:-Whether GST is leviable on the "Marg Sudharan Shulk" and "Abhivahan Shulk" charged by Forest Division Dehradun from the non-government, private and commercial vehicles engaged in mining work in lieu of use of forest road

Crux:- Under GST "the services by way of assess to a road or bridge on payment of toll charges" are included in list of exempted services. Therefore no GST is leviable on "Marg Sudharan Shulk" as it is nothing but toll charges collected by the applicant from users for using forest road.

"Abhivahan Shulk" cannot be termed as toll tax and it is a form of consideration received by the applicant in lieu of services provided to the person for carrying forest produce. Hence, the applicant is liable to pay GST @ 18% on the said "Abhivahan Shulk"  under Service Code 9997 and treated as Other services.

Source:- http://gstcouncil.gov.in/sites/default/files/Advance-rulings/01-2018-19_Dtd_20-04-18_Uttrakhand.pdf


4. M/s Bahl Paper Mills Ltd. v/s Shri Vipin Chandra (Member) & Shri Amit Gupta (Member)

Order dated 04/05/2018


a) Whether under Reverse Charge Mechanism, IGST should be paid by the importer on ocean freight in case of CIF basis contract, when service provider and service recipient both are outside the territory of India.

(b) What will be the supporting document for importer under RCM to take the credit of IGST paid on ocean freight under CIF basis contract

(c) Whether credit will be available in GST of office fixtures & furniture, A.C. plant & sanitary fittings on newly constructed building on its own account for furtherance of business and accounting entry is capitalized in books of account


a) A Importer is required to pay IGST on Ocean Freight as per Notification No. 08/2017 & 10/2017- Integrated Tax (Rate) dt. 28.06.17, even if the importer has already paid IGST on CIF value of imported goods. The applicant is also required to pay IGST on ocean freight.

b) Credit of IGST paid can be taken on the basis of invoice/challan issued

c) As per explanation of section 17 of CGST Act 2017, Credit of GST paid is not available in respect of Land, Building or any other civil structure. Hence Cenvat Credit of GST paid on on such sanitary  fittings which forms integral part of building or any other civil structure is not available.

However the Cenvat Credit of GST is available on office furniture & fixtures & A.C. plant.

Source:- http://gstcouncil.gov.in/sites/default/files/Advance-rulings/03-2018-19_Dtd_04-05-18_Uttrakhand.pdf


5. M/s Kanj Products (P) Ltd. v/s Shri Vipin Chandra (Member) & Shri Amit Gupta (Member)

Order Dated 19/03/2018

Issues:- Applicability of Notification dated 5.1O.2O17 issued by DIPP, Ministry of Commerce and Industry read with CBEC Circular No. 1060/9/2O17-Cx. Dated 27th November 2017 in respect of following issues:

a) If the assessee takes over an eligible unit as a going concern under slump sale agreement and there is a change in the ownership of the unit which was availing the benefit of area based exemption Notification no. 50/2003-CE dated 10.6.2003 amended prior to 1.7.2017

b) If the said eligible unit availing of the exemption is physically shifted to a new location within the area specified in the said area based exemption notifications?

c) If there is any addition or modification in the plant or machinery or on the production of new products after taking over an eligible unit during residual period of exemption?

Crux:- The question raised by the applicant does not fall under section 97(2) for Advance Ruling. Hence the question is not entertainable.

Source:- http://gstcouncil.gov.in/sites/default/files/Advance-rulings/Uttarakhand%2003-2017-18%20Dt%2019-03-18.pdf