Home Case Index All Cases GST GST + AAR GST - 2021 (1) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (1) TMI 492 - AAR - GSTClassification of goods - seat adjuster - Whether the product merits classification under Serial No.170 as per Notification No.1/2017-Central Tax (Rate) dated 28.06.2017 or under Serial No.435A of Notification No.1/2017-Central Tax(Rate) dated 28.06.2017 as amended by Notification No.41/2017-Central Tax(Rate) dated 14.11.2017? HELD THAT:- On going through the definitions of ‘parts’ and ‘accessories’, it ca be said that ‘parts’ are an amount or section which when combined with others, makes up the whole of something. In other words, a 'part' is an essential component of the whole without which the whole cannot be complete or cannot function. Further, as per definition, ‘accessories’ are different from parts, as it is not an essential component of the whole without which the whole cannot be complete or function, but it is a thing which can be added to something else in order to make it more useful, versatile, or attractive. Based on the submission of the applicant as well as the image of the ‘seat adjuster’ submitted by the applicant, we find that it is essentially in the nature of rails made out of iron and steel which are affixed/welded/bolted into the lower cushion of the ‘seat’ which helps the driver or passenger to slide the seat back and forth, as per his convenience/requirement and comfort, with the operation of a lever forming part of the rail assembly. However, it cannot be considered a ‘part’ of the seat as stated by the applicant as it is not an essential component of the seat i.e. the seat is complete and fully functional even without it. We find that the ‘seat adjuster’ merely helps in the adjustment of the seat i.e. moving it back and forth as per requirement/convenience and merely improves the efficiency and convenience of the seat but does not form a part of the seat. Thus it can be concluded that the ‘seat adjuster’ is just an ‘accessory’ which improves the efficiency and convenience of the seat. Since the ‘seat adjuster’ is an accessory of the seat which is an essential part of the motor vehicle, it would be aptly covered under the Sub-heading 87089900 as ‘accessory’ of the motor vehicle under the head “Parts and accessories of the motor vehicles”. From a bare reading of the Chapter Heading 8708.00, it can be derived that it covers parts and accessories of motor vehicles and this chapter heading is wide enough in its scope so as to cover all accessories of motor vehicles which would also cover accessories to seats. We are therefore of the opinion that the parts and accessories of motor vehicles, subject to relevant conditions, which are not covered under any of the Sub-headings starting from 87081010 to 87089500 under the Heading 8708 would be invariably covered under the Sub-heading 87089900. In the instant case, heading 8708 covers “parts and accessories of the motor vehicles of headings 87.01 to 87.05 (other than specified parts of tractors). Further, as discussed earlier, ‘seat adjuster’ does not form a part of the seat of a motor vehicle but is just an ‘accessory’ of the seat and since the seat is an essential part of the motor vehicle, the said accessory automatically becomes an accessory of the motor vehicle. We also find that as per the explanatory notes to the heading 8708, this heading covers those parts and accessories of the motor vehicles of heading 87.01 to 87.05, which fulfil the two conditions mentioned - In this regard, it is to mention that on the basis of the submission given by the applicant with regard to the ‘seat adjuster’ along with its picture, specific functions and uses, it can be derived that the ‘seat adjustor’ is an accessory, which can be used solely and principally in the seats of the motor vehicles only. Motor vehicles are covered under headings 87.01 to 87.05 of Chapter 87 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as listed in para 15.1 above. Thus the first condition is satisfied - We have also gone through the list of ‘parts and accessories’ excluded as per the provisions of the Explanatory Notes to Section XVII to the ‘Harmonized Commodity Description and Coding System’ and found that ‘seat adjuster’ does not find mention in the same. Therefore the second condition is also satisfied - Therefore, since both the conditions have been satisfied, it can be safely concluded that the ‘seat adjustor’ is covered under the heading 8708 only. It is thus concluded that the product ‘seat adjuster’ manufactured and supplied by the applicant is correctly classifiable under Heading No.8708 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and is covered under Entry No.170 of Schedule-IV of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017. Whether the product ‘seat adjuster’ finds mention under the Heading 9401, for which we would be required to go through the said heading as appearing in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975)? - HELD THAT:- A ‘seat adjuster’ cannot, by any stretch of imagination, be defined as a part of a ‘seat’ as it is not an essential component of the ‘seat’ i.e. the ‘seat’ is complete and fully functional without it. Further, as per definition, ‘accessories’ are different from parts as it is not an essential component of the whole without which the whole cannot be complete or function, but it is a thing which can be added to something else in order to make it more useful, versatile, or attractive. We find that ‘seat adjuster’ fits the definition of ‘accessory’ perfectly - the ‘seat adjuster’ is essentially in the nature of rails made out of iron and steel, which are affixed/welded/bolted into the lower cushion of the ‘seat’, which helps the driver or passenger to slide the seat back and forth, as per his convenience/requirement and comfort, with the operation of a lever forming part of the rail assembly. We find that the ‘seat adjuster’ merely helps in the adjustment of the seat i.e. moving it back and forth as per requirement/convenience and merely improves the efficiency and convenience of the seat but does not form a part of the seat. Even while looking at the function of the ‘seat adjustor’ as well as its use, it can be derived that it can be termed only as an ‘accessory’ and not a part of the ‘seat’. Even in common parlance, the ‘seat adjustor’ is not considered as a part but only as an ‘accessory’ of the seat of a motor vehicle. Thus it can be concluded that the ‘seat adjuster’ is just an ‘accessory’, which improves the efficiency and convenience of the seat. Now, since Sub-heading No.94019000 only covers parts of a seat, the ‘seat adjuster’, which is not a ‘part’ but only an ‘accessory’ of the seat, would not be covered under the said sub-heading. Thus, the ‘seat adjuster’, being an ‘accessory’ of the seat, does not fall under the heading 9401 but would be rightly classified under the Heading 8708 (Parts and accessories of the motor vehicles).
|