In Re : M\/s. Dyna Automation Private Limited
GST
2018 (6) TMI 426 – AUTHORITY FOR ADVANCE RULINGS, GUJARAT – 2018 (14) G. S. T. L. 107 (A. A. R. – GST), [2018] 2 GSTL (AAR) 90 (AAR)
AUTHORITY FOR ADVANCE RULINGS, GUJARAT – AAR
Dated:- 17-1-2018
Advance Ruling No. GUJ\/GAAR\/R\/2017-18\/5
GST
Mr. R.B. Mankodi (Member) And Mr. G.C. Jain (Member)
\nFor The Applicant : Nilesh V. Suchak
\nRULING
\nThe applicant has raised following questions for advance ruling in their application :-
\n (i) What is the classification and rate of Goods and Services Tax for Hydraulic Gear Pump and Piston Pump which are parts suitable for use principally with Earth Boring, Earth Moving & Material Handling Equipment or parts suitable for use principally with the machinery of headings 8425 to 8430 ?
\n (ii) What is the classification and rate of Goods and Services Tax for Hydraulic Gear Pump and Piston Pump which are used as parts for agricultural machinery ?
\n (iii) What is the classification and <\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n customs had cleared the goods by charging 28% IGST but it appeared that the goods should be chargeable at 18%. It is submitted that 'Steering Unit' which is a kind of hydraulic valve and used as intermediate parts of hydraulic systems in agricultural harvesting machine merit classification under 8481 2000 and Rate of IGST is 18% or CGST 9% + SGST 9% vide Notification No. 1\/2017-CT(Rate), Schedule – III 9%, Sl. No. 368 – “Taps cocks, valves and similar appliances for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves”. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n the party along with their application in their office due to non registration of the unit with their office; that unless and until full detailed scrutiny of the details of the product imported is made, their office is not in a position to accept or deny the classification opinion of the party. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n so far as may be, apply to the interpretation of this notification.” = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n 8448, 8466, 8473, 8503, 8522, 8529 or 8538 aw appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e for use solely or principally with the machinery of headings 8425 to 8430″. The product “Steering Unit (Hydraulic Orbital Valve)” also does not merit classification under Tariff Item 8433 9000 as “Parts” of Harvesting or threshing machinery etc. in view of Section Note 2(b) Section XVI. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n nder Tariff Heading 8481 of the Customs Tariff Act, 1975. Further, as the expression “parts” and “parts and accessories” under Section XVII of the Customs Tariff Act, 1975 do not apply to articles of heading 8481 in view of Note 2(e) of Section XVII of the Customs Tariff Act, 1975, and the product 'Steering Unit (Hydraulic Orbital Valve)' is item of Tariff Heading No. 84.81, the said product cannot be considered to be parts of vehicle, as it is excluded from Section XVII and hence the said product do not fall under Tariff Heading 8708 as “Steering wheels, steering columns and steering boxes; parts thereof”. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" In Re : M\/s. Dyna Automation Private LimitedGST2018 (6) TMI 426 – AUTHORITY FOR ADVANCE RULINGS, GUJARAT – 2018 (14) G. S. T. L. 107 (A. A. R. – GST), [2018] 2 GSTL (AAR) 90 (AAR)AUTHORITY FOR ADVANCE RULINGS, GUJARAT – AARDated:- 17-1-2018Advance Ruling No. GUJ\/GAAR\/R\/2017-18\/5 GSTMr. R.B. Mankodi (Member) And Mr. G.C. Jain (Member) … Continue reading “In Re : M\/s. Dyna Automation Private Limited”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-12083","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/12083","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12083"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/12083\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12083"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12083"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12083"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n4.1 At the time of Personal Hearing on 15.11.2017, it was submitted that this product may merit classification under Tariff Heading 8481 or under 8431 under Schedule – III, Sl. No. 328 (attracting Rate CGST 9% + SGST 9%) with description “Parts suitable for use solely or principally with the machinery of headings 8425 to 8430″ and more specifically under 8431 4200 as 'Parts of Bulldozers” or under 8431<\/p>\n
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\n7. We have considered the submissions made by the applicant in their application for advance ruling and additional submissions made at the time of personal hearing on 15.11.2017. We have also considered the information and view of the Goods & Services Tax and Central Excise, Ahmedabad South Commissionerate.
\n8.1 The issue involved in this case pertains to classification of the product 'Steering Unit (Hydraulic Orbital Valve)' i.e. whether the said product falls under Chapter Heading 8481 or 8431 or 8708 of the Customs Tariff Act, 1975. On the basis of the classification of the said product, it will be leviable to appropriate rate of Goods and Services Tax prescribed under Notification No. 1\/20<\/p>\n
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\n8.3 Further, Hon'ble Supreme Court in the case of L.M.L. Ltd. Vs. Commissioner of Customs [Civil Appeal No. 3764 of 2003, decided on 21.09.2010 reported at 2010 (258) ELT 321 (S.C.)] has held as follows :-
\n “12. In Collector of Central Excise, Shillong v. Wood Crafts Products Ltd. reported in (1995) 3 SCC 454, it was held by this Court that as expressly stated in the statements of objects and reasons of the Central Excise Tariff Act, 1985, the Central Excise Tariffs are based on the Harmonious System of Nomenclature (HSN) and the internationally accepted nomenclature was taken into account to reduce disputes on account of tariff classification. Accordingly, for resolving any dispute relating to tariff classification, a safe guide is the internationally accepted nomenclature emerging from the Harmonious System of Nomenclature (HSN). Although, the decision in the case of Woodcraft Products (supra) dealt with the int<\/p>\n
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\n (c) All other parts are to be classified in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate or, failing that, in heading 8487 or 8548.”
\n 9.2 Further, Note 2 of Section XVII of the Customs Tariff Act, 1975 provides as follows :-
\n “2. The expression “parts” and “parts and accessories” do not apply to the following articles, whether or not they are identifiable as for the goods of this section :
\n (a) ……
\n (b) ……
\n (c) ……
\n (d) ……
\n (e) Machines and apparatus of headings 8401 to 8479, or parts thereof, other than the radiators for the articles of this Section, articles of heading 8481 or 8482 or, provided they constitute integral parts of engines or motors, articles of heading 8483;
\n (f) ……
\n (g) ……
\n (h) ……
\n (i<\/p>\n
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\n11.1 The Chapter Heading 8481 of the Customs Tariff Act, 1975 applies to “Taps, cocks, valves and similar appliances for pipes, boiler, shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves”.
\n11.2 The Explanatory Notes for 'Taps, Cocks, Valves and similar appliances for Pipes, Boiler Shells, Tanks, Vats or the like, including Pressure Reducing Valves and Thermostatically Controlled Valves' under Tariff Heading 8481 of the Harmonised System of Nomenclature, inter-alia, provides as follows :-
\n ” ……
\n Taps, cocks, valves, etc., remain in this heading even if specialized for use on a particular machine or apparatus, or on a vehicle or aircraft. <\/p>\n
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\n11.4 Further, Explanatory Notes to Heading 87.08 of 'parts and accessories of the motor vehicles of headings 87.01 to 87.05' inter-alia reads as follow :-
\n “This heading covers parts and accessories of the motor vehicles of headings 87.01 to 87.05, provided the parts and accessories fulfill both the following conditions :
\n (i) They must be identifiable as being suitable for use <\/p>\n
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