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2019 (10) TMI 1014 - AAR - GSTClassification of goods - rate of GST - LPG Conversion Kit for Automobiles - HELD THAT:- The LPG/CNG conversion kit is an apparatus / part that provides alternate fuel into the internal combustion engines of and hence can be considered as parts of said internal combustion engines, which are parts of motor vehicles. Tariff heading 8407 covers spark-ignition reciprocating or rotary internal combustion piston engines; tariff heading 8408 covers compression-ignition internal combustion piston engines (diesel or semi-diesel engines) and tariff heading 8409 covers parts suitable for use solely or principally with the engines of heading 8407 or 8408. In the instant case the product conversion kit is specific to a particular engine i.e. auto rickshaw (three wheeler). Therefore it could be considered that the impugned kit is a part suitable for use solely or principally with engines of auto rickshaw, which falls under tariff heading 8407 or 8408. Hon’ble CESTAT, Chennai in the case of TRANSENERGY LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, CHENNAI [2008 (9) TMI 130 - CESTAT CHENNAI] has held that the CNG Conversion Kits providing alternate fuel charging system to internal combustion engines are engine parts and though internal combustion engine are parts of motor vehicles of heading 8708 of the Central Excise Tariff, Heading 8409 ibid is being more specific, the kits are classifiable under heading 8409. Thus, the LPG Conversion Kits are classifiable under HSN 8409 99 90 and the same are covered under serial no.116 of Schedule IV to the Notification No.01/2017 - Central Tax (Rate) dated 28.06.2017 and hence liable to tax at 14% under the CGST Act. 2017 - Similarly the said kits are liable to tax at 14% under the KGST Act 2017 under entry no. 116 of Schedule IV of Notification (01/2017) No. FD 48 CSL 2017 dated 29.06.2017.
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