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2018 (11) TMI 1267 - AAR - GSTClassification of manufactured item - automotive chains (i.e., silent chains used in petrol engines and roller chains used in diesel engines) - whether classified under HSN 8409 or 7315? Held that:- It is evident that the items are transmission chains which are used in automotive engines and machinery for transmitting mechanical power from one shaft to another and are made of steel. They are articulated chains i.e. made of a series of links or plates which are driven by external sprockets and do not have any other assembly. The Applicant supplies these mainly to automotive industries where they are used in internal combustion engine, they synchronizes the rotation of the crankshaft and the camshaft(s) so that the engine’s valves could open and close at proper time - It is seen that articulated link chains of steel such as roller chain, inverted tooth (silent) chains are included under 7315 irrespective of their intended use and whether they are cut to length or intended for particular use. In the instance case, the items are intended for internal combustion engines of automobiles, motorcycles etc. It is evident that Heading 7315 includes articulated link chains such as roller chains or silent chains which are used as transmission chains for engines of automobiles or machinery. Though these form parts of engines under Chapter 8407 or 8408, they are covered under definition of ‘parts of general use’ which are specifically excluded from chapter heading 8409 - Therefore, articulated link chains ie. ‘Roller chains’ supplied by the applicant are classifiable under CTH 73151100 and ‘Inverted tooth chains or silent chains’ under CTH 73151290 of the Customs Tariff made applicable to GST. Ruling:- “Roller chains” supplied by the applicant are classifiable under CTH 73151100 and ‘Inverted tooth chains or silent chains’ under CTH 73151290 of the First Schedule to the Customs Tariff Act, 1975 as applicable to GST as per Explanation (iii) to Notification 1/2017 -Central Tax (Rate) dt 28.06.2017 and G.O. Ms No. 59, Commercial Taxes and Registration (B1) dt 29th June 2017.
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