2018 (6) TMI 704 – AUTHORITY FOR ADVANCE RULING, GUJARAT – 2018 (14) G. S. T. L. 94 (A. A. R. – GST), [2018] 2 GSTL (AAR) 93 (AAR) – Classification of goods – Lightning Arrester – Earthing Pipe – Solid Rod Earthing – Back Fill Compound – service of installation of Earthing System.
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Lightning Arrester – whether classified under Chapter Heading 8535 or otherwise? – Held that:- The Tariff Heading 8535 covers the products ‘Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, fuses, lightning arresters, voltage limiters, surge suppressors, plugs and other connectors, junction boxes), for a voltage exceeding 1,000 volts”. Thus, the product ‘Lightning Arrester’ is specifically covered under Tariff Heading 8535.
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Earthing Pipe – whether classified under Chapter Heading 8535 or otherwise? – Held that:- The product ‘Earthing Pipe’ is specifically processed to make usable solely and principa
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whether classified under Chapter Heading 3824 or otherwise? – Held that:- The product ‘Back Fill Compound’ is prepared by mixing Bentonite Powder, Wood Charcoal Powder and Graphite Powder. Tariff Heading 3824 covers ‘Prepared binders for foundry moulds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included’. Accordingly, the product ‘Back Fill Compound’ merit classification under Tariff Heading 3824.
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Service of installation of Earthing System – Held that:- ‘Electrical installation services including Electrical wiring & fitting services, fire alarm installation services, burglar alarm system installation services’ fall under Service Accounting Code 995461. Accordingly, the Service Accounting Code 995461 covers the service of installation of ‘Earthing System’ provided by the applicant.
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Ruling:- The product ‘Lightning Arrester’ is classifiable under Tar
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of Earthing Products consists of Mild Steel (MS) and Stainless Steel (SS), in solid rods and pipes of various sizes. The applicant is also carrying on business in Back Fill Compound (BFC). The applicant manufactures Earthing Pipe, Earthing Rods, Lightning Arrester and Back Fill Compound. The applicant also provides installation work for Earthing and Lightning Arresters fitting and renovation. 2. The applicant has raised the question of determination of classification of the products manufactured and service provided by them. 3. The Central Goods and Services Tax & Central Excise Commissionerate, Surat has opined that Earthing Pipe, Earthing Rods and Lightning Arresters may be classified under Chapter Heading 8535 and Backfill Compound obtained by mixing of various chemical / natural products can be appropriately classified under Chapter Heading 3824. It is also informed that the service of Electrical Installation is covered under Service Accounting Code 995461. 4. We have consider
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electrical circuits (for example, switches, fuses, lightning arresters, voltage limiters, surge suppressors, plugs and other connectors, junction boxes), for a voltage exceeding 1,000 volts . Thus, the product Lightning Arrester is specifically covered under Tariff Heading 8535. 6.1 In respect of Earthing Pipe , it has been submitted by the applicant that to manufacture this product, they purchase hollow Iron Pipes and Iron Strips, which are cut to size as per vendor requirements and then a piece of Iron Strip is placed inside the pipe. The Iron Strip is first cut to size a longer in length than pipe and holes are drilled for connection. After the strip is placed inside the pipe, one end of it is sealed by electric welding. This welding is again machined on lathe machine to clear any burrs. Then the pipe with strip is filled with a mixture of bentonite, wood charcoal and graphite powder. After filling, the other end is also sealed by electric welding. Then the whole piece which they c
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es as per vendor requirements. Thereafter, in one end, the terminal is made by machining on milling machine and lathe machine, then connection hole is drilled for connection. The other end is processed and machined in a conical shape. Different pieces are machined at both ends and male and female threads are made for easy fitting. After inspection, the apparatus thus made is sent for electroplating. 7.2 It is observed from the manufacturing process and submissions of the applicant that the Solid Rod Earthing are solid iron rods of required size, which are machined at both ends for easy fitting. Tariff Heading 7215 covers Other bars and rods of iron or non-alloy steel which covers the product Solid Rod Earthing . Had the product Solid Rod Earthing been such as usable solely and principally for lighting arrester system, it would have been classifiable under Tariff heading 8538, however nothing is available on record to suggest so. 8.1 In case of product Back Fill Compound , it is submitt
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), andalusite, kyanite and sillimanite, whether or not clacined; mullite; chamotte or dinas earths. Bentonite (Crore or other – including processed and ground) is covered under Tariff Heading 2508. However, as per Note 1 of Chapter 25, the headings of this Chapter do not cover products that have been obtained by mixing. As the product Back Fill Compound is obtained by mixing Bentonite Powder, Wood Charcoal Powder and Graphite Powder, the same would not fall under Tariff Heading 2508 in view of the said Note 1 of Chapter 25. Tariff Heading 2805 covers Alkali or alkaline-earth metals; rare-earth metals, scandium and yttrium, whether or not intermixed or interalloyed; mercury . The applicant has not submitted anything indicating how the product Back Fill Compound can be termed as Alkali or alkaline earth-metals or rare-earth metals etc. or mercury, to be covered under Tariff Heading 2805. Therefore, the said product would not fall under Tariff Heading 2805. 9. The applicant also provides
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