Order date: 28.09.2022

Key Pointers

• The Applicant, M/s. Shakti Marine Electric Corporation, is an authorized wholesale dealer for the supply of Combined Wire Rope.
• The Combined Wire Rope has got wide usage in General Engineering, fishing Vessels and also in General Vessels, and the applicant is charging 18% GST. 
• The applicant submits that the Combined Wire Rope having HSC code 7312 and specification 14mm diameter and construction 6xl9SCF supplied to these 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 parts of Fishing Vessels having chapter heading 8902 are eligible for 5% GST as per Sr.No.252 of Schedule -I of Notification No. 1/2017-Central Tax (Rate).
• The issue is whether GST Rate of 5% in terms of Sr.No.252 of Schedule-I of Notification No. 1/2017-CTR. corresponding notification issued by Gujarat State and Notification No. 1/2017-ITR is applicable in the case "Combined Wire Rope” used as a part of Fishing Vessel?”.
• The authorities observed that Combined Wire Rope is not a part of fishing vessel but it's one side is used to tie the Fishing Net and other side of Wire Rope tied on the vessel. The main use of Combine Wire Rope in fishing is to tie the fishing net with vessel. Therefore, fishermen required such wire rope for fishing purpose and the applicant supply such Combine Wire Rope to them. Further, as per the use of Combine Wire Rope it is amply clear from the above that it has no use in the fishing vessel but it is used to tie the fishing net.
• Further, in the instant case Combined Wire Rope is not a part of fishing vessel but it is used to tie the fishing net with the vessel.
• The authorities thus held that combined Wire Rope is not used as a part of fishing vessel and the impugned goods does not cover under entry No.252 of Schedule-l of Notification No. 1/2017-CT(Rate) dated 28-06-2017 as amended and is not eligible to GST @ 5%.