In Re: M/s. Maini Precision Products Ltd.,
GST
2018 (9) TMI 1036 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – 2018 (17) G. S. T. L. 117 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – AAR
Dated:- 6-8-2018
AAR No. KAR ADRG 19/2018
GST
SRI. HARISH DHARNIA, AND DR. RAVI PRASAD M.P. MEMBER
Represented by: Sri Shivadas, Advocate
ORDER UNDER SUB-SECTION (4) OF SECTION 98 OF CENTRAL GOODS AND SERVICE TAX ACT, 2017 AND UNDER SUB-SECTION (4) OF SECTION 98 OF KARNATAKA GOODS AND SERVICES TAX ACT, 2017 AND SECTION 20 OF THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017
1. M/s Maini Precision Products Ltd, (called as the 'Applicant' hereinafter), having its registered office at B-165, Peenya Industrial Estate, 1st Stage, 3rd Cross, Bengaluru 560058, having GSTIN number 29AABCM8269R1ZF, has filed an application for Advance Ruling under Section 97 of CGST Act, 2017, KGST Act, 2017 read with Rule 104 of CGST Rules 2017 & KGST Rules 2017, in form GST ARA-01 dischargi
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nd supply of High Precision Components and Assemblies, catering to a global clientele in the automotive, industrial and aerospace sectors. The applicant manufactures and supplies a wide range of products including sub-assembly products, precision machined components, industrial castings, metal forgings, vacuum formed parts, engine parts, transmission parts, parts of fuel injection pumps.
b. The applicant submitted that section 97(2)(b) of the KGST Act provides that the question in respect of which Advance Ruling is sought shall be inter-alia in respect of the applicability of a notification issued under the provisions of the GST Act and in respect of determining the classification of goods to be supplied by the applicant and since the applicant is seeking to determine the applicability of Schedule I of Notification No. 01/2017- I.Tax (Rate) dated 28.06.2017 to the supplies of 'parts of fuel injection pumps' to be made by the applicant and consequently, the rate of tax applicable on su
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d Tax (Rate). Further Sl. No. 453 of Schedule III covers goods falling under any Chapter which are not covered by any of the entries in Schedule I, II, IV, V and VI also becomes relevant for the Heading 8413.
e. The applicant submits that 'parts of the fuel injection pumps for diesel engines' shall fall under Tariff Entry 8413 91 90. He has reproduced the entries pertaining to the Heading 8413 in the Customs Tariff Import Schedule for reference. The applicant claims that it becomes evident that the said parts of the 'fuel injection pumps for diesel engines' shall fall under the head 8413 91 which deals with “parts” of pumps. Under the head, the 'parts of the fuel injection pumps for diesel engines' shall fall under entry 8413 91 90 as 'Other' because it is not classifiable under any other sub-headings.
f. The applicant submits that the product proposed to be supplied shall undisputedly be covered under Tariff Heading 8413 91 under Section XVI of the Customs Tariff Act, 1975, which de
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h “parts of pumps”.
i. Schedule II consists of goods attracting IGST @ 12% and includes the following
192.
8413
Power driven pumps primarily designed for handling water, namely, centrifugal pumps (horizontal and vertical), deep tube-well turbine pumps, submersible pumps, axial flow and mixed flow vertical pumps
The above entry in Schedule II covers certain pumps falling under 8413, but does not include the parts of such pumps.
j. Schedule IV of the Notification provides the list of goods that attract IGST at the rate of 28%. Entry 117 of the Notification reads as below
117.
8413
Pumps for dispensing fuel or lubricants of the type used in filling stations or garages [8413 11], Fuel, lubricating or cooling medium pumps for internal combustion piston engines [8413 30]
The applicant submits that while the above entry does pertain to 'fuel injection pumps', this entry does not pertain to 'parts of such fuel injection pumps'. Hence the entry shall be ren
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g specifically classified elsewhere would therefore fall within the ambit of Entry 453 of Schedule III and supply of 'parts of the fuel injection pumps for diesel engines' attracts a levy of 18% GST.
4. FINDINGS & DISCUSSION:
a. The contention of the applicant is examined. The goods dealt by the applicant are 'parts of the fuel injection pumps for diesel engines'. The parts of pumps for liquids, whether or not fitted with a measuring device' are covered under the heading 8413 91.
b. The goods covered under heading 8413 91 are verified and found the sub-heading 8413 91 covers the following goods
8413 91
Parts of pumps
8413 91 10
Parts of reciprocating pumps
8413 91 20
Parts of Centrifugal pumps
8413 91 30
Parts of deep well turbine pumps and of other rotary pumps
8413 91 40
Parts of hand pump for handling water
8413 91 90
Other
Since parts of fuel injection pumps for diesel engines are parts of pumps, but are neither covered unde
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plied by the applicant is neither a hand pump or a part of it, the same cannot be covered under entry 231 of Schedule I of the Notification No.1/ 2017 – Integrated tax (Rate) dated 28.06.2017 attracting 5% IGST. Further, since the goods supplied is not Power driven pumps primarily designed for handling water, the same cannot be covered under entry 192 of Schedule II of the Notification No.1/ 2017 – Integrated tax (Rate) dated 28.06.2017 attracting 12% IGST.
e. The Schedules of the Notification No.1/ 2017 – Integrated tax (Rate) dated 28.06.2017 were verified and found that there is no other entry in Schedule I or II or IV or V or VI which covers the entry 8413 91 90.
f. Sl. No. 317A was inserted in Schedule III (which pertains to goods attracting 18% IGST) by Notification No. 43/ 2017 – Integrated Tax (Rate) dated 14.11.2017 and reads as under:
317A.
8413
Concrete pumps [8413 40 00], other rotary positive displacement pumps [8413 60]
The above entry also does not co
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