In Re: M/s. WABCO India Limited
GST
2018 (10) TMI 1053 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (18) G. S. T. L. 560 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, TAMILNADU – AAR
Dated:- 27-9-2018
ORDER No. 10/AAR/2018
GST
MS. MANASA GANGOTRI KATA AND S. VIJAYAKUMAR, MEMBER
Note : Any appeal against the advance ruling order shall be filed before the Tamilnadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under
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(Rate) dated 28 June 2017 read with 41/2017 -Central tax (Rate) dated 14th November 2017 is 9% ?
2.Whether the said rate of Central tax of 9 0/0 is applicable to the above product with effect from 1st July 2017?
2.0 WABCO has stated that they are engaged in manufacture of brake systems and related parts for heavy vehicles such as trucks, bus and other such commercial vehicles. The Electrical Wiring Harness is primarily an electrical wire with connectors at both ends and this product, manufactured by the applicant, is supplied to automobile manufacturers for applications in Anti-skid Braking Systems (ABS) in heavy vehicles. The Electrical Wiring Harness consists of Connectors & accessories, Wires & Cables, Tapes – Flame retardant (FR) grade for Wiring Harness applications, corrugated tubes – Flame retardant (FR) grade for Wiring Harness applications and are used to distribute the electrical energy from one point to another. The Applicant manufactures the wiring harness following the
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The supply has been made under invoices with CGST of 14% as per Sl no 161 of Schedule IV of Notification No 1/2017 as “insulated (including enameled or anodized) wire, cable and other insulated electrical conductors whether or not fitted with connectors(other than winding wires, coaxial cables, optical fibers” and with the amendment of Notification noel effective from 14th November 2017, the customers have been demanding the Applicant to charge CGST on above product at the rate of 9% as per sl.no 395 of Schedule III of Notification No 1/2017 and insisting on credit note for the differential tax charged in the past transactions (From 1 July, 2017 to 13th November,2017). Out of abundant caution, the Applicant continued to charge CGST on such products at the rate of 14% and deposited the amount with the Government. The intention of legislature was to treat 8544 as single entry as is evident from amendment and hence Electrical Wiring Harness attracted 9% CGST under Notification No 1/2017 e
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t have been examined. It is seen that a wiring harness is a set of wires, terminals and connectors that run throughout entire vehicle and relay information and electric power used in starting engine, lights, meters, power windows, doors, brakes and other devices in the vehicle. The wiring harness are made up of connectors, wires, cables, flame retardant tapes and corrugated tubes. This product is specifically used in Anti-lock braking system. The major customers are Tata Motors Limited & Ashok Leyland Ltd along with after-market sales to wholesalers & retailers. Sample invoices provided indicate that the product is being sold under the description “Electrical Wiring Harness” under HSN 8708 and 8544.
5. The question raised before us is Whether the Electrical Wiring Harness, primarily an electrical wire with connectors at both ends, manufactured by the Applicant falls under HSN tariff item 8544 for which the rate prescribed vide Notification No. 01/2017 – Central Tax (Rate) dated 28th J
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interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall be applied for the interpretation and classification of goods.
General Notes to HSN Explanatory Notes to chapter 85 states:
This Chapter covers:
(7) certain articles and materials which are used in electrical apparatus and equipment because of their conducting or insulating properties, such as insulated electric wire and assemblies, thereof (heading 85.44)
Chapter Heading 8544 of Customs Tariff is as follows:
Insulated (including enameled or anodized) 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, whether or not assembled tvith electric conductors or fitted with connectors
And more specifically, 85443000, states as follows:
Ignition wiring sets and other wiring sets of a kind
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“parts and accessories” do not apply to the following articles, whether or not they are identifiable as for the goods of this Section:
(f) Electrical machinery or equipment (Chapter 85);
Further, as per the explanations to Section XVII in HSN, the parts and accessories of the vehicles falling under this chapter, will merit classification under this chapter only if the same satisfies the three conditions as below:
From the above, it is evident that insulated electrical wire and cable including wiring sets fitted with terminals or not of headings 8544 stands excluded as per Note 2 to Section XVII. Also, condition (c) is not satisfied in as much as wiring sets of a kind used in vehicles is specifically stated under 85443000. In view of the above, we find that the Electrical Wiring Harness manufactured by the applicant falls under the HSN tariff item 85443000. It is seen that Circular 25/88 Cx dated 17.11.1988 issued by CBEC has held that wiring harness are classifiable under 8544.
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/2017-C.T.(Rate) dated 28.06.2017 and G.O. (Ms) No. 62 dated 29.06.2017 No. Il(2)/CTR/532(d-4)/2017 and is subject to tax at the rate of 14% CGST and 14% SGST. The said Notification is amended as per Notification No. 41/2017- C.T.(Rate) dated 14th November 2017 and G.O. (Ms) No. 157, dated 14.11.2017 by which the Entry at SI.No. 161 of Schedule IV was omitted and the entry at SLNo. 395 of Schedule III was modified as follows:
“Insulated (including enameled or anodized) 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, whether or not assembled with electric conductors or fitted with connectors”
These amendments were made effective from 15.11.2017.
From the above, it is clear that the 'Electrical Wiring Harness manufactured by the Applicant, was subjected to tax @ 14% CGST and 14% SGST for the period from 01.07.2017 to 14.11.2017 and thereon, the tax rate
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