In Re : A.S. Moloobhoy Private Limited
GST
2018 (10) TMI 1314 – AUTHORITY FOR ADVANCE RULING – MAHARASHTRA – 2018 (18) G. S. T. L. 683 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING – MAHARASHTRA – AAR
Dated:- 18-7-2018
GST-ARA-14\/2018-19\/B-71
GST
SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER
\nPROCEEDINGS
\n(under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
\nThe present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by A S Moloobhoy Private Limited , the applicant, seeking an advance ruling in respect of the following question.
\nThe Applicant requests this Hon'ble Authority to decide as to whether the supply of goods [as listed in Annexure I-A of this ARA application] is classifiable as “Parts of goods of headings 8901, 8902, 8904, 8905, 8<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n S. Moloobhoy Private Limited ('the Applicant'\/'the Company'). The Applicant, having Good and Service Tax ('GST') Registration No. 27AAMCA4160E1ZT is inter alia engaged in the business of sale and distribution of Marine Distress Signals, EPIRB and SART, SSAS, Marine Chemicals, Navigation and Communication (NAVCOM) Equipment and also providing Life Saving services: such as Life raft, Lifeboat and Fire-fighting services, including Pyrotechnic Disposal, Electronic Services and Training Services related to the Marine Industry. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e copy of relevant purchase orders and emails are enclosed at Annexure I-H, I-I, I-J, I-K & I-L. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n eadings 8901, 8902, 8904, 8905, 8906, 8907″ under entry 252 of Schedule I of CGST Notification No. 01\/2017-Central Tax (Rate) dated 28lh June, 2017 (Amended from time to time) and liable to GST @ 5% (CGST-2.5% and SGST- 2.5%) or IGST-5% as specified in entry 252 of schedule I of Notification No. 01\/2017-Integrated Tax (Rate),dated 28-06-2017. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n t. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n s on board a vessel, so as to ensure that the ship as a whole is sea worthy as per IMO Regulations. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n d the Merchant Shipping (Distress and Safety Radio Communication) Rules, 1995 has made these Rules which would apply to all sea going passenger, cargo and fishing boats of 20 mtrs. or more than length and all ships other than Indian ships more than 300 tons while they are in any port or place in sea. The Rules require all existing ships comply part I of the Rules on or before 1st February, 1995. Various dates on which these Rules will come into force in parts are mentioned, and but compliance is required on or before 1-2-99 in all cases. The said rules requires inter alia that every ship or fishing boat should carry two satellite EPIRB, Navtex receiver radio facility of Maritime safety information by the INMARSAT, enhanced group calling (EGC) system of HF Direct printing telegraphy, etc = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n o declining to renew the certificate of seaworthiness, issued to the ships under the Merchant Shipping Act, 1958 and the vessel could not have been allowed to sail. By the operation of the Rules of 1995, the vessel which is not fitted with this equipment became would be unlawful to ply. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n t of judgments in Applicants own case\/other's case under Customs: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n p Care Pvt. Ltd. [2005 (191) ELT 697 (T)] has held that Ship spares for repair of ocean-going vessel like 'Global Marine Distress Safety System' equipment imported and used to upgrade old radio communication\/navigation equipment in ships were necessary for safety of ocean-going vessels in voyages and further Fitment of safety equipment to ships for making vessel seaworthy amounts to 'repair' of ship for purpose of S. No. 227 of Notification No. 23\/98-Cus. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n p; (a) Malwa Industries – 2009 (235) ELT 214 (SC) = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n and their associated spares, etc., detailed therein, are integral part of a ship without which ship cannot sail and would not be considered seaworthy as per the IMO\/SOLAS\/guidelines. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ng questions: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n B-501, 5th floor, Marathon Futurex, = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n sp; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n bmissions. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n definition of 'Spare Part' as per Wikipedia = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n complete and would not exist. These are very integral for the functioning of the ship and can also be separated from the ship for repair\/replacement. When we refer to the definition of the word 'part' as discussed in detail above, we find that 'part' is a separate piece of something or a piece that combines with other pieces to form the whole of something. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n parts in so far as manufacture of roll is concerned, but it is not 'component part' in the manufacture of sheets. It is useful to quote the observations made by this Court: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ions: 1977 AIR 132,1977 SCR (1) 837. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n riters are being sold in the market without the typewriter ribbons and therefore typewriter ribbon is not an essential part of a typewriter so as to attract tax as per entry 18 of the Second Schedule to the Mysore Sales Tax Act, 1957.” = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n oscope = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n s = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n RT = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" In Re : A.S. Moloobhoy Private LimitedGST2018 (10) TMI 1314 – AUTHORITY FOR ADVANCE RULING – MAHARASHTRA – 2018 (18) G. S. T. L. 683 (A. A. R. – GST)AUTHORITY FOR ADVANCE RULING – MAHARASHTRA – AARDated:- 18-7-2018GST-ARA-14\/2018-19\/B-71 GSTSHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER PROCEEDINGS (under section 98 of the Central Goods and … Continue reading “In Re : A.S. Moloobhoy Private Limited”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-14640","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14640","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14640"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14640\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14640"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14640"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n2. Applicant imports various goods\/spares, which are supplied on ships and these equipment form an essential part of the ship, and makes the ship “sea worthy.”
\n3. The above referred goods are imported by the applicant on payment of IGST. The detailed list of HSN codes of such imported goods along with the applicable tax rates is attached herewith at Annexure I-A.
\nThe sample copies of illustrative Bill Of Entry for such imports are enclosed <\/p>\n
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\n6. Based on the information from customers and market trend, applicant also feels that GST rate should be 5% on the goods supplied by it as same are essential part of ship which makes the ship seaworthy. It is legally 'obligatory for ships to have fitment\/installation of all such spares and equipment to qualify as seaworthy. These parts\/equipment should therefore be classified under the tariff heading of “Parts of goods of headings 8901, 8902, 8904, 8905, 8906, 8907.”
\n * Heading 8901 is for cruise ships, excursion boats, ferry boats, cargo ships, barges and similar vessels for transport of persons or goods.
\n * Heading 8902 applies to fishing vessels, factory' ships, other vessels, etc.
\n * Heading 8904 is for tugs and pusher crafts.
\n * Heading 8905 covers Light vessels, fire floats, dredgers and other vessels.
\n * Heading 8906 and 8907 is for other vessels and floating structure<\/p>\n
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\n9. The list of goods\/ spares\/parts\/equipment (which are installed or fitted on the ships) for which the advance ruling is sought as to classification of such goods is enclosed herewith at Annexure- I-A.
\nSTATEMENT CONTAINING THE APPLICANT'S INTERPRETATION OF LAW AND\/OR FACTS, AS THE CASE MAY BE, IN RESPECT OF THE QUESTION(S) ON WHICH THE ADVANCE RULING IS SOUGHT
\n1. ISSUE FOR DETERMINATION
\n1.1. The questions\/ issues before Your Honor for determination is whether supply of goods (as listed in Annexure I-A) is classifiable as “Parts of goods of headings 8901, 8902, 8904, 8905, 8906, 8907” under entry 252 of Schedule 1 of CGST Notification No. <\/p>\n
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\nSUBMISSION 2
\n2.3. Notification 01\/2017 -CGST dated 27th June, 2017 states that the “classification of goods should be as per the rules of classification enshrined in the Customs Act, 1962.”
\n2.4. Relevant portion of Rule 3(a) of the customs valuation rules reads as under:
\n“When by application of rule 2(b) or for any other reason, goods are prima facie, classifiable under two or more headings, classification shall be effected as follows:
\nThe heading which provides the most specific description shall be preferred to headings providing a more general description.”
\n2.5. As stated above, the goods being imported are necessarily parts of the ship, in view of their compulsory requirement as per IMO; to establish the ship as sea worthy, and not spares per se.
\nThe meaning of the term “spares” referred above, incorporates a wide ambit of products and therefore would lesd to a generic classification of goods.
\n2.6. On the other hand the classification of the same; as parts of the ship, w<\/p>\n
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\n3. PRAYER
\nIn light of the above, a Ruling is sought from the Honorable Authority on classification of goods listed in Annexure III and applicable GST rate on such goods.
\nAdditional submissions on 27\/07\/2018
\nWe, M\/s. A.S. Moloobhoy Pvt. Ltd. (hereinafter referred to as the Applicants) refer to their application for Advance Ruling.
\n2. The issue on which ruling is sought for from the Authority for Advance Ruling is as to whether parts of Marine Distress Signals, Emergency Position Indicating Radio Beacon (EPIRB) and Search and Rescue Transponder, (SART), Ship Security Alert System (SSAS), Navigation and Communication (NAVCOM) Equipment related to the Marine Industry, as detailed in Annexure-1-A, are covered under Sr.No.252 of Schedule 1 of Notn. No. 1\/2017-Central Tax (Rate) and Notn.No.1\/2017-lntegrated Tax (Rate) both dated 28.06.2017 and chargeable to GST @ 5%.
\n3.0 The facts, succi<\/p>\n
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\n3.4 For undertaking the repair of the ship, over and above rendering of repair service, the Applicants also are required to supply various parts of various equipment in ship viz. Navigation equipment a<\/p>\n
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\n3.8 prior to 1.07.2017, in pre-GST era, central excise duty was not applicable as the Applicants being dealers and in that VAT was payable.
\n3.9 under the said factual position, the present application is filed with a prayer for ruling on the said equipment and spares of availability of concessional rate of GST of 5% (2.5% + 2.5%) under Sr. No.252 of list 1 of Notn.No.1\/2017-Central Tax (Rate)\/lntegrated Tax (Rate).
\n4.0 Grounds before Appellate Authority:
\n4.1 Equipment form an essential part of the ship:
\n4.2 The Applicants imports goods under consideration which are supplied on ships and these equipment form an essential part of the ship and makes the ship “sea worthy”.
\n4.3 The said equ<\/p>\n
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\n5.1 Notn.No.23\/98-Cus dated 2.6.1998 and succeeding Notifications including 21\/2002-Cus dated 1.3.2002 (Sr. No. 251) was prescribing Nil rate of duty (both standard rate and additional duty rate) to capital goods and spares thereof, raw-materials, parts, material handling equipment and consumable used for repair of ocean-going vessel by Ship Repair Unit registered with DGS.
\n5.2 The notice was issued to the importer-Applicants proposing to deny the exemption under the said Notification on the basis that the goods were not covered by any of the category of item specified in the entry to the exemption. It further alleged that the goods were not used for repair because the ships were fully functional and would not be part of repair.
\n5.3 By Order-in-Original No. CAO\/68\/20027CAC\/CC\/ASS dated 18.02.2002, Ld. Commissioner of Customs, Mumbai denied exemption under Notification 23\/98-Cus (Sr. No.227).
\n5.4 Since aggrieved a<\/p>\n
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\n5.9 Again in Applicants own case, Tribunal vide its judgment dated 23.08.2011 [2012 (276) ELT 399 (Tri-Mum)] had held that Handset imported for replacement of defective handset of communication system of ocean going vessel would be entitled for benefit of Notification No. 21\/2002-Cus (Sr. No.351).
\n6.0 Squarely covered by Sr.No.252 of list 1 of Notn.No. 1\/2017-Central Tax (Rate) dated 28.06.2017:
\n6.1 The Entry No. 252 of list 1 of Notn.No. 1\/2017-Central Tax (Rate) dated 28.06.2017 is as reproduced below:<\/p>\n
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\n (b) Mewar Bartan Nirman Udyog – 2008 (231) ELT 27 (SC)
\n (c) Parle Biscuits – 2005 (192) ELT 23 (SC)
\n (d) Bombay Oil Industries – 1997 (91) ELT 538 (SC)
\n7.0 Section\/Chapter Notes and\/or Explanatory Notes to HSN are for classification and not for interpreting exemption Notn.:
\n7.1 HSN, Explanatory Notes, Rules of Interpretation, etc. cannot be used to interpret the exemption notification and further exemption notification to be strictly interpreted in accordance with words of notification thereunder and the intention thereof.
\n7.2 The above view gets substantiated from the ratio of following judgments:-
\n (a) Gujarat Ambuja – 216 (338) ELT 481 (SC)
\n (b1) Winter Misra Diamond Tools -1996 (83) ELT 670 (T)
\n (b2) -do- Upheld by Supreme Court – 1997 (94) ELT A-52 (SC)
\n (c) Set Telecommunication – 2003 (161<\/p>\n
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\nIt is further certified that every ship being built at any shipyard must include these equipment and its associated spares to construct a sea worthy vessel.
\n9.2 The said certificate would substantiate that the goods under consideration mentioned at Annexure-l-A to application are parts of goods of heading 8901, 8902, 8904, 8905, 8906 and 8907.
\n10.0 The provisions of Merchant Shipping (Distress & Safety Radio Communication) Rules, 1995 would support that the goods under consideration are parts of ship and hence, would be covered under Sr. No.252 of list 1 of Notn. 1\/2017-Central Tax (Rate)\/Integrated Tax (Rate)
\n11. With the above submissions and those made in their application and additional submissions, it is humbly prayed for holding that the disputed equipment would be covered under Entry No. 252 of<\/p>\n
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\na) Whether marine distress signals, EPIRB, SART, SSAS, marine chemicals, navigation and communication equipment life raft, lifeboat, firefighting services, pyrotechnic disposal, electronic services and training services related to marine industry supplied by the applicant, would be considered to be part of ship and accordingly be then classified under SI no. 252 of Schedule I of Notification No 1\/2017 of Central Tax (rates) dated June 28,2017
\nAlso, as per the notice following details were asked by the Advance Ruling Authority:-
\n1) Registration No, of Central Excise or Service Tax or both as applicable.
\n2) Period of Registration in case of Para (1) above.
\n3) Registration Address for Central Excise or Service Tax or both as applicable,
\n4) (a) Classification of Goods and their Central Excise Tariff Heading.
\n(b) Rate of Central Excise duty as applicable.
\n(c) Details of benefit of notification of Central Excise if any availed.
\n5) (a) Classification of Service\/Se<\/p>\n
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\n Mafatlal Mills, N. M. Joshi Marg,
\n Lower Parel, Mumbai, 400013.
\n 3) Registered address of Service Tax Office:
\n Mumbai Central-New, Division-Ill, Range I,
\n Primal Chambers, Jijibhoy Lane,
\n Lalbhaug, Parel, Mumbai-400012.
\n 4) Classification of Services provided by the applicant under service tax is as under:
\nTable-1
\nSr. NO.
\nServices provided by Applicant
\nAccounting Code
\nService Tax Rate (Basic+SBC+KKC)
\nBenefit of any notification claimed
\n1
\nTechnical Inspection and certification Agency Services
\n00440249
\n15%
\nN. A.
\n2
\nMaintenance & Repairs Services
\n00440245
\n15%
\nExemption was claimed under clause 25 (b) of Notification 25\/2012 ST dated 20\/06\/2012 for services provided to Govt., a Local authority or a Govt. authority by way of repair or maintenance of vessel.
\n
\n5) Assesse have not applied for any <\/p>\n
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\n8529
\nParts suitable for use solely or principally with the apparatus of headings 8525 to 8528
\n48%
\n
\n9014
\nDirection finding compasses; other navigational instruments and appliances
\n18%
\n
\n8526
\nRadar apparatus, radio navigational aid apparatus and radio remote control apparatus
\n18%
\n
\n8479
\nMachines and mechanical appliances having individual functions, not specified or included elsewhere in this Chapter
\n18%
\n
\n6307
\nOther made up articles, including dress patterns
\n5 & 12%
\n
\n8525
\nTransmission apparatus for radio broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video camera recorders
\n12,18 & 28%
\n
\n8544
\nInsulated (including enamelled or anodised) wire, cable (including co-axial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fibre cables, made up of individually sheathed fibres,<\/p>\n
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\n05. OBSERVATIONS
\nWe have perused the records on file and gone through the facts of the case and the submissions made by the applicant and the department.
\n10. We find that the applicant has submitted that they are engaged in the business of sale and distribution of Marine Distress Signals, EPIRB and SART, SSAS, Marine Chemicals, Navigation and Communication (NAVCOM) Equipment, Life raft, Lifeboat and Fire-fighting services, including pyrotechnic Disposal, Electronic Services and Training Services related to the Marine Industry. They are importing the various goods\/spares, which are supplied by them on ships. As per their submissions such equipments are an essential part of a ship, and makes the ship sea worthy.
\nThe only issue that is raised before us by the applicant is whether the said parts\/spares\/equipments which are used on a ship are forming parts of the ship and therefore chargeable to reduced tax @ 5% under Sr.No.252 of Notification No.1\/2017 Central Tax (Rate) dat<\/p>\n
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\nA spare part, spare, service part, repair part or replacement part is an interchangeable part that is kept in an inventory and used for the repair or replacement of failed units. Spare parts are an important feature of Logistics Engineering and Supply Chain Management.
\nThus in view of the above meanings\/definitions of part\/parts\/Spare Part, we will be required to examine as to what are the parts of Goods of CTH 8901, 8902, 8904,8905, 8906 and 8907 and whether the subject goods\/spares as mentioned by the applicant listed in Annexure 1-A of this ARA application can be taken to be covered within the meaning of Parts for Sr. No. 252 of Notification no. 1\/2017 Integrated Tax (Rate) dated 28.06.2017.
\nWe find that items like Anchor, Bow, Bowsprit, Fore and Aft, Hull, Keel, Mast, Rigging, Rudder, Sails, Shrouds, Engines, gearbox, Propeller, Bridge, etc. are the very essential parts of a ship or vessel and are quite clearly parts of a vesse<\/p>\n
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\nSimilarly the second definition of part also defines 'part' as one of the pieces that together form a machine or some type of equipment.
\nWhile interpreting the issues like the one at hand, we may refer to certain judgements which throw light on the disputed issue.
\nIn case of Saraswati Sugar Mills Vs Commissioner of Central Excise Civil Appeal No.5295 of 2003 decided on 2nd Aug 2011 Hon. Supreme Court of India observed :
\n12. In order to determine whether a particular article is a component part of another article, the correct test would be to look both at the article which is said to be component part and t<\/p>\n
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\nPaper core would also be constituent part of paper and would thus fall within the term “component parts” used in the Notification in so far as manufacture of paper in rolls is concerned. Paper core, however, cannot be said to be used in the manufacture of paper in sheets as component part.
\n15. In Modi Rubber Ltd. v. Union of India, (1997) 7 SCC 13, the appellant had set up tyre and tube manufacturing plant and imported various plants and machineries. While using the plants and machineries, PPLF (Polypropylene Liner Fabric) was used as a device in the form of liner components to various machinery units to protect the rubber-coated tyre fabric from atmospheric moisture and dust. This Court held that the PPLF was not a component of the machine itself. It was not a constituent part. It was used as a Liner Fab<\/p>\n
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\nIn this case the appellant contended before the Hon SC that carbon paper does not lose its character as paper in spite of being subjected to chemical processes, and that ribbon is not an accessory but an essential part of the typewriter. While dismissing the appeal Court held that “A word which is not defined in an enactment has to be understood in its popular and commercial sense with reference to the context in which it occurs. It has to be understood according to the well-established canon of construction in the sense in which persons dealing in and using the article understand it.
\nThe Hon SC further observed that “Bearing in mind the ratio of the above mentioned decisions, it is quite clear that the mere fact that the word 'paper' forms part of the denomination of a specialized article is not decisive of the question whether the article is paper as generally understood, 'the word 'paper' in the common parlance or in the com<\/p>\n
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\nIn light of the above discussions, considering the meaning of an expression (Part) as given in the dictionary and also the ratio as adopted by the Hon'ble Courts as mentioned above besides common parlance test, we now take up each and every goods\/spares, etc claimed by the applicant to be parts of a ship [as listed in Annexure I-A of this ARA application and as reproduced by them mentioning their uses in page no 24 of their compilation A made before this authority as an additional submission] and discuss and find out whether each of the subject goods\/spares can be considered as parts of ship. They have broadly listed the equipments\/parts of the equipments along with their usage which is as follows:-
\nS. No.
\nEQUIPM ENT
\nFULL FORM
\nDESCRIPTION
\nREMAR<\/p>\n
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\nUsed for navigation
\nIs an essential part of ship and without it the ship would not be performing its essential function and therefore would be parts of a ship as per above discussions
\nF
\nAIS
\nAutomatic Identification System
\nUsed for identifying other ships details
\nWould be in the nature of an additional equipment and therefore cannot be considered as parts of a ship as per above discussions
\nG
\nDS
\nDoppler Speed Log
\nUsed to measure ships speed through water
\nIs an essential part of ship and without it the ship would not be performing its essential function and therefore would be parts of a ship as per above discussions
\nH
\nMF\/HF
\nMedium\/High Frequency Communication
\nUsed for long range communication
\nIs an essential part of ship and without it the ship would not be performing its essential function and therefore would be parts of a ship as per above discussions
\nI
\nVHF
\nVery High frequency
\nUsed for short range speed communication
\nIs an essential part of ship and without <\/p>\n
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\nIs an essential part of ship and without it the ship would not be performing its essential function and therefore would be parts of a ship as per above discussions
\nN
\nVDR
\nVoyage Data Recorder
\nUsed for recording and analysing data of the ship
\nWould be in the nature of an additional equipment and therefore cannot be considered as parts of a ship as per above discussions
\nO
\nNDB
\nNon Directional Beacon
\nUsed for choppers to determine landing location on board
\nWould be in the nature of an additional equipment and therefore cannot be considered as parts of a ship as per above discussions
\nP
\nFCV
\nFish Finder
\nUsed for higher level accuracy and clear fish shoal images
\nWould be in the nature of an additional equipment and therefore cannot be considered as parts of a ship as per above discussions
\nQ
\nSONAR
\nSound Navigation and Ranging
\nUsed for searching underwater fishing
\nWould be in the nature of an additional equipment and therefore cannot be considered as parts of a ship as per <\/p>\n
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\nWalkie talkie
\nUsed for internal communication by the ship's staff
\nWould be in the nature of an additional equipment and therefore cannot be considered as parts of a ship as per above discussions
\nThe classification of goods under Sr. No. 252 depends solely on the nature of use to which the goods are put to. We find from the above table that the items mentioned at Sr. Nos A, B, C, D, E, G, H, I, J, K, M and S are essential parts of a ship\/vessel without which the ship would not be complete and would not exist. These are very integral for the functioning of the ship. Hence out of the 504 goods mentioned in [Annexure I-A of this ARA application and reproduced by them mentioning their uses in page nos 24 to 39 of their compilation A made before this authority as an additional submission] we are of the opinion that out of the 504 items mentioned by them, only goods used in the equipments mentioned at Sr. Nos. A, B, C, D, E, G, H, I, J, K, M and S of the above table can be conside<\/p>\n
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