IN RE: WESTERN CABLE ENGINEERING CABLE PVT. LTD.
GST
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)
AUTHORITY FOR ADVANCE RULING, DAMAN, DIU AND DADAR AND NAGAR HAVELI – AAR
Dated:- 21-3-2018
01\/AR\/SK-CP\/ Daman\/2017-18
GST
SHRI SATISH KUMAR AND CHARMIE KAMAL PAREKH MEMBER
\nBrief Facts of the Case:-
\nM\/s Western Cablex Engineering Pvt Ltd, herein after referred to as assessee Plot No. 7, Silver Industrial Estate, Bhimpore, Daman,registered under Goods & Service Tax vide GSTIN Number 25AAACW 2419 G1ZL,vide their letter dated 24.07.2017, submitted an application in form of GST ARA-01 under Rule 104(1) of Advance Ruling alongwith statements of facts and copy of Challan bearing No. 17072500000009 dated 24.07.2017 evidencing the payment of required fee of Rs. 5000\/-,In the said application the assessee has sought clarification for correct classification of their goods i.e. Heat Shrinkab<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ering Pvt Ltd was engaged in clearing of their manufactured goods, “Heat Shrinkle Components” under Chapter 854790 in the existing law under Central Excise Tariff Act, 1985 and were paying duty @ 12.5% adv.But in GST regime the assessee have changed their classification and started clearing their goods under Chapter 854690 because the rate of duty in GST regime under Chapter 854790 was 28% and under the requested Chapter Head i.e. 85469010 the GST rate was 18%. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n Heat Shrinkable Cable Jointing Kits is to be classified under HS Code 8546 or 8547. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n 8546 20 33 Above 11 kV but up to 66 kV kg. 12.5% = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n change in the characteristic and use of their product with the introduction of new GST law. The product and its usage remains the same as in the existing law. Hence, advance Ruling cannot be pronounced on the basis of their contention. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n regard it is worth mentioning here that the Apex Court have already accepted the classification of the product in question as 8547 in the case of XL Telecom P. Ltd. v. Union of India, 1994 (70) ELT 530 (Bombay), = 1993 (3) TMI 123 – HIGH COURT OF JUDICATURE AT BOMBAY wherein the Court while considering classification of cable jointing kits in the said judgment has observed as under: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n p; 1993 (3) TMI 123 – HIGH COURT OF JUDICATURE AT BOMBAY, it can be seen in the said judgment Supra referred in Para 10 wherein no scope of classification dispute is left,that the Cable jointing Kit is classifiable under Head 8547 of the GST Tariff. The other test for deciding classification issue is, how the article is identified by the class or section of people dealing with or using the same. In this connection no dispute is made that the Articles is being heat srinkeble insulating material for cable jointing used for that purpose only. Even the applicant assessee have not disputed this fact and declared in their application that the goods in question is comprises of 15 to 20 items assembled in a kit which is used in joining a telephone\/electric cable with special characteristic of insulation. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" IN RE: WESTERN CABLE ENGINEERING CABLE PVT. LTD.GST2018 (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)AUTHORITY FOR ADVANCE RULING, DAMAN, DIU AND DADAR AND NAGAR HAVELI – AARDated:- 21-3-201801\/AR\/SK-CP\/ Daman\/2017-18 GSTSHRI SATISH KUMAR AND CHARMIE … Continue reading “IN RE: WESTERN CABLE ENGINEERING CABLE PVT. LTD.”<\/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-13668","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13668","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=13668"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13668\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n3. Defence Submission and Records of Personal Hearing:
\nTo abide by the law of natural justice, the assessee were given a chance to be heard in person vide letter dtd 23.02.2018. They were also requested vide the above said letter to submit documentary evidence in support of their claim, if any.
\n3.1 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 “He<\/p>\n
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\n4.1 before deciding the issue, we refer to the Chapter Note of Heading 8546 under GST Tariff which reads as under –
\n8546- Electrical Insulators of any material
\n8546 10 00 – Of glass kg. 9% +9% 18%
\n8546 20 – Of ceramics: –
\nPorcelain discs and strings :
\n8546 20 11 Porcelain below 6.6 kV kg. 9% +9% 18%
\n8546 20 19 Other kg. 9% +9% 18%
\n– Porcelain post insulators :
\n8546 20 21 Below 6.6 kVkg. 9% +9% 18%
\n8546 20 22 6.6 kV or above but up to 11 kV kg. 9% +9% 18%
\n8546 20 23 Above 11 kV but up to 66 kV kg. 9% +9% 18%
\n8546 20 24 Above 66 kV but up to 132 kV kg. 9% +9% 18%
\n8546 20 29 Above 132 kV kg. 9% +9% 18%
\n– Porcelain pin insulators:
\n8546 20 31 Below 6.6 kV kg. 9% +9% 18%
\n8546 20 32 6.6 kV or above but up to 11 kV kg. 9% +9% 18%
\n8546 20 33 Above 11 kV but up to 66 kV kg. 9% +9% 18%
\n8546 20 39 Above 66 kV kg. 9% +9% 18%
\n8546 20 40 Other high tension porcelain solid core kg. 9% +9<\/p>\n
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\n8546 20 39 Above 66 kV kg. 12.5%
\n8546 20 40 Other high tension porcelain solid core kg. 12.5% insulators
\n8546 20 50 Other low tension porcelain insulators including kg. 12.5% telegraph and telephone insulators
\n8546 20 90 – Other kg. 12.5%
\n8546 90 – Other:
\n8546 90 10 – Heat shrinkable components kg. 12.5%
\n8546 90 90 – Other kg. 12.5%
\n4.3. Further, under Indian Customs Tariff, the classification of the product in question have been similar as under GST and Central Excise viz. Under Chapter heading 8546 which read as ELECTRICAL INSULATORS OF ANY MATERIAL. Even the sub headings of the head 8546 are same as in the case of Central Excise and GST.
\n4.4 We note that Harmonized System of Nomenclature (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 foun<\/p>\n
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\n5. Now, as enquired in second option by the applicant assessee, we are forced to discuss classification merit for the said product under Chapter Heading 8547. Before reaching on any conclusion, it will be in the interest of justice to discuss the Chapter Heading 8547, hence, we reproduce the Headings 8547 under GST law & act which read as under:
\n“8547-“Insulating fittings for electrical machines, appliances or equipment, being fittings wholly insulating material apart from any minor components of metal (for example, 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”.
\n5.1 We note that the C<\/p>\n
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\n“Chapter 39 of CTA covers “plastics and articles thereof. Heading 39.26 is an omninbus and generic entry. Chapter 85 covers, inter alia, Insulating Fittings, Heading 85.47 contains a specific description of insulating fitting. The principle of 'Generalia Specialibus non Derogant” is well known and also applies to classifications of articles under the Customs Tariff. The thread of this principle runs all through even in the General Rules of Interpretation of Entries under the CTA.
\n“10. In the circumstances, we declare that the subject goods merit classification under Heading 85-47 of the CTA and we <\/p>\n
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\n5.4 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<\/p>\n
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