The West Bengal bench of the Authority for Advance Rulings (AAR) has held that a three-wheeled electrically operated vehicle, commonly known as e-rickshaw, when supplied without battery is also classifiable as an âelectrically operated motor vehicleâ under HSN 8703.
The applicant, AMWA MOTO LLP, is an entity engaged inter-alia in the business as wholesaler of electrically operated two wheeled vehicles. The company wants to enter into the business of manufacturing and reselling of electrically operated three wheeled vehicles in the state of West Bengal. The applicant approached the AAR bench seeking clarification on the rate of tax applicable on the said product.
A bench comprising Mr. Brajesh Kumar Singh, Joint Commissioner, CGST & CX MrJoyjitBanik, Senior Joint Commissioner, SGST referred the decision of theOrissa AAR to conclude that when a vehicle which is solely operational on battery power is supplied without battery, the same will qualify as a supply of electrically operated vehicle and therefore shall be classifiable under tariff item 8703.
âIt transpires from above that the power of a battery operated vehicle is solely generated from the rechargeable battery since it doesnât have any other source of propulsion. âElectrically operated vehiclesâ as it has been explained in serial number 242A of the Notification No. 12/2019-Central Tax (Rate) dated 31.07.2019 requires a single factum that the vehicles will run solely on electrical energy derived from an external source or from one or more electrical batteries fitted to such road vehicles. There is not an iota of doubt that unless the battery is fitted to an e-rickshaw, it will not be capable to run. But the question arises that when an e-rickshaw, having a motor fitted on it, is supplied without battery, does it lose its original character and can be termed as âchassisâ.â
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