2018 (9) TMI 689 – AUTHORITY FOR ADVANCE RULING, DAMAN, DIU AND DADAR AND NAGAR HAVELI – 2018 (16) G. S. T. L. 639 (A. A. R. – GST) – Classification of goods – Heat Shrinkable Cable Jointing Kits – whether the product of the applicant in question i.e. Heat Shrinkable Cable Jointing Kits is to be classified under HS Code 8546 or 8547?
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Held that:- The Chapter Head description under existing law i.e. Central Excise, GST and Customs are one and the same. Further, it is worth mentioning here that, at all the material times the said goods were classified for the purposes of basic and other Customs Duty by the Customs deptt. under heading 85.47 of Customs Tariff Act – The assessee, during the course of personal hearing, have accepted that they are running the same business for the last many years and were classifying the goods under Chapter Heading 8547 for their product Heat Shrinkable Wrap Around Sleeve in the existing law. This fact has been verified from the ER-1 Return filed by th
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nce Ruling alongwith statements of facts and copy of Challan bearing No. 17072500000009 dated 24.07.2017 evidencing the payment of required fee of ₹ 5000/-,In the said application the assessee has sought clarification for correct classification of their goods i.e. Heat Shrinkable Cable Jointing Kits to be classified under HS Code 8546 or 8547. 2. To verify the facts, application of the assessee was forward to the Assistant Commissioner,Div-V, GST & CE, Daman for examination and their detailed reports on the following points was called for:- i. Classification of the said goods under Central Excise Tariff Act, 1985; ii. Whether any issue on the subject matter has been decided by the appellate Authority in their own case of the assessee or other cases. If yes, please furnish the copy of the said orders; iii. What is prevailing practice of classification of the product in question? and iv. Their report on classification of the subject goods under GST regime with supporting Case L
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idence in support of their claim, if any. 3.1 In compliance of the said PH letter, Shri Arvind Nair, Director of the applicant assesse appeared for personal hearing on 07.03.2018. During the personal hearing, he submitted that that the major part of their finished goods is Heat Shrinkable and, therefore, their product merit classification under CH 8546 and instead of 8547. He also demonstrated/showed Parts/components of some of the product Heat Shrinkable Jointing Kit of Power Cable/Telephone Cable. He further submitted that they are classifying their product in the GST regime under Heading 8546 only as per the heading Heat Shrinkle Components provided in the GST Tariff. He, therefore, requested to consider their submission and pass an order classifying their product under HSC 8546 itself & not under HSC 8547. 3.2 Their Application was admitted under Sub Section 2 of Section 98 of the Central Goods and Service Tax Act, 2017 to decide the issue of correct classification as to whethe
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lators: 8546 20 31 – Below 6.6 kV kg. 9% +9% 18% 8546 20 32 – 6.6 kV or above but up to 11 kV kg. 9% +9% 18% 8546 20 33 – Above 11 kV but up to 66 kV kg. 9% +9% 18% 8546 20 39 – Above 66 kV kg. 9% +9% 18% 8546 20 40 – Other high tension porcelain solid core kg. 9% +9% 18% insulators 8546 20 50 – Other low tension porcelain insulators including kg. 9% +9% 18% Telegraph and telephone insulators 8546 20 90 – Other kg. 9%+9% 18% 8546 90 – Other: 8546 90 10 – Heat Shrinkable Components kg. 9% +9% 18% 8546 90 90 – Other kg. 9%+9% 18% 4.2 Now we refer to the Chapter Note of Heading 8546 under existing law i.e. under Central Excise Tariff Act, 1985, which reads as under – 8546 ELECTRICAL INSULATORS OF ANY MATERIAL 8546 10 00 – Of glass kg. 12.5% 8546 20 – Of ceramics: – Porcelain discs and strings : 8546 20 11 – Porcelain below 6.6 kV kg. 12.5% 8546 20 19 – Other kg. 12.5% – Porcelain post insulators : 8546 20 21 – Below 6.6 kV kg. 12.5% 8546 20 22 – 6.6 kV or above but up to 11 kV kg. 12.5% 8
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omenclature (HSN) is internationally recognized product/items coding system which has also been accepted in India. From the above detailed Chapter Sub Heading wise classification of the product in the existing law i.e. under Central Excise it is found that the classification of the above said product is one and the same under GST regime as well as under Customs law. No change in the classification under all the entire three Act have been noticed. Therefore, we do not find any change under Chapter heading 8546 under Central Excise and GST regime. It proves that there is no change in the classification of the product in existing Central Excise law as well as the newly introduced GST law under major head 8546. From 1stJuly, 2017, with the introduction of GST law from the existing law i.e. Central Excise, no change in the basic characteristics of the product is found, therefore, a sudden change in the classification of the product without having legal and reasonable backing is not tenable.
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mple, threaded sockets) incorporated during moulding solely for purposes of assembly, other than insulators of heading No. 8546; electrical conduit tubing and joints therefor, of base metal lined with insulating material . 5.1 We note that the Chapter Head description under existing law i.e. Central Excise, GST and Customs are one and the same. Further, it is worth mentioning here that, at all the material times the said goods were classified for the purposes of basic and other Customs Duty by the Customs deptt. under heading 85.47 of Customs Tariff Act. We further note that the kit in question comprises of more than 15 independent articles/items. Therefore, selection of its classification on the basis of single product out of 15-17 items, will be improper without considering individual and joint value of the remaining articles of the kit. We further note that the assessee, during the course of personal hearing, have accepted that they are running the same business for the last many ye
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thread of this principle runs all through even in the General Rules of Interpretation of Entries under the CTA. 10. In the circumstances, we declare that the subject goods merit classification under Heading 85-47 of the CTA and we quash the impugned decision of classifying them under Heading 39.26 5.2 The aforesaid judgment clearly answers the issue raised in the present application which is unambiguously covered by the ratio of the above referred judgment. We note that in Para 8 of the said judgment it is specifically observed by the Division Bench that raw material for manufacturing of components for cable jointing kits is described sometimes as insulating materials and sometime as unexpanded sleeves. The fact remains that said material is used as insulating material. The aforesaid judgment of the Division Bench has been accepted by the Revenue wherein it is specifically mentioned that certain doubts have been expressed regarding the classification of Cable Jointing Kits assembled f
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characteristic of insulation. 5.4 The fact remains that said material i.e. Cable Jointing Kits assembled from various components are classifiable under Chapter Heading No. 8547.00. We find that the Circular No 583/20/2001-CX dtd 20.08.2001 makes it clear that the judgment in the case of M/s XL Telecom P. Ltd. v. Union of India (cited supra) observed that the materials assembled in the kit has been uniformly classified at all departmental levels under (chapter Heading No. 85.47 of C.E.T.A 1985. The Court in the case of XL Telecom Ltd., (supra) has held that the components for cable jointing kits are classifiable under chapter heading 8547. 6. In view of the above discussing and findings, we hereby pronounce Advance Ruling under Sub-Section 2 of Section 97 using power vested in us under sub Section 6 of Section 98, Section 96 of the Central Goods and Service Tax Act, 2017 read with Rule 103 of the Central GST Rules, 2017 as under- Order/ Advance Ruling We hereby take decision against ap
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