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2019 (4) TMI 455 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRAClassification of goods - Geared Motor - combination of gear box’ and electric motors' - the product Gear Box’ is classified under the HSN Code ‘8483’, ‘Electric Motors’ are classified under the HSN Code ‘8501’ - whether the Geared Motor would be classified under the HSN Code 8483 or HSN code 8501? - Held that:- The product ‘Geared Motors’ is a combination of gear box and electric motors. Vide Notification No. 1/2017 C.T. (Rate) dated June, 28, 2017, tariff rates have been notified for the purpose of levy and collection of GST which has classified goods into 4 digit codes as per HSN. In the said Notification it has been specified that for the purpose of classification of goods, the section notes, chapter notes and the General Explanatory notes mentioned under Customs Tariff Act, 1975 would apply to classification of goods under the GST Act. Therefore the classification of the product is to be decided in terms of HSN. From the harmonious reading of Section notes 4 and 5 to Section XVI and the inclusion Note in 8501 and the exclusion Note in heading 8483 referred to above, the ‘ geared motors’ being a combination of machines that is Electric Motors and Gear Box intended to contribute together a cleared defined function to run industrial machineries with speed controlling mechanism, the Geared Motor is appropriately classifiable in the heading 8501. The jurisdictional officer has different view. He submits that Geared Motor is a machine consisting of two individual components interconnected. His view is that electrical motors when attached to Gear Box will no longer remain an electrical motor but a geared motor with altogether a different function that is transmission of mechanical power and speed from one shaft to another. Though the contention of the jurisdictional officer appears convincing, in view of the exclusion note under chapter heading 8483 and inclusive note to 8501, it would be against the scheme of HSN to agree with the jurisdictional officer’s view. Thus, the “Geared Motors” supplied by the applicants fall under Tariff Heading 8501.
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