TMI Blog2018 (6) TMI 515X X X X Extracts X X X X X X X X Extracts X X X X ..... d Motor’, which is an assembly product of the ‘Electric Motor’ and ‘Gear Box’, will appropriately fall under Chapter Heading 8501 of the Customs Tariff Act, 1975. Ruling:- The product ‘Geared Motor’ is classifiable under Chapter Heading 8501 of the Customs Tariff Act, 1975 and Goods and Services Tax rate applicable to Chapter Heading 8501 is applicable to the said product. - ADVANCE RULING NO. GUJ/GAAR/R/2017-18/2 (IN APPLICATION NO. Advance Ruling/SGST&CGST/2017-18/AR/8 ) - - - Dated:- 13-12-2017 - Mr. R.B. Mankodi, Member And Mr. G.C. Jain, Member For The Applicant : Shri A.K. Pandey, DGM And Shri Rashmin Vaja, CA RULING 1. The applicant M/s. Power Build Private Limited has submitted that in manufacturing of Geared M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supplying Geared Motor , which is an assembly product of the Electric Motor and Gear Box . Electric Motor is covered under HSN code 8501 attracting GST at 18%, while Gear Box falls under HSN code 8483 attracting GST at 28%, however, HSN code and tax rate for product Geared Motor is not provided under law. 3. The applicant has raised following question for advance ruling in their application :- What is the HSN Code and GST Tax Rate of a product Geared Motor ? 4.1 The Commissioner of Central Excise GST, Vadodara I Commissionerate informed that it is a fact that the HSN code and GST Tax Rate of product Geared Motor is not clearly mentioned in the GST Tariff, therefore, for determining the HSN code and GST Tax rate of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tor Assembly of Electric Motor with Gear Box becomes Geared Motor which is electrical product. End use of the product : In general, Gear Box are assembled with the Electric Motor and used in following industries a. Agriculture b. Pharma c. Cement d. Pulp and Paper e. Fertilizer f. Textile g. Rice Mill h. Food Industries 4.2 It is submitted that from the above inputs, process and end use of the product, it is inferred that the Geared Motor is a device in which an Electric Motor is fixed with the Gear Box for changing its speed and torque. In addition, the very first paragraph of the catalogue of the Geared Motor of applicant company mentions as follows :- Geared Motors and Gearboxes are the hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts GST rate of 28%. There is no specific entry for Geared Motor in GST Schedule. 5.2 It is further informed that by assembly of Gear Box and Electric Motor , a distinct product Geared Motor is manufactured, which has no direct use, but it is used as parts in Machinery, Tools, Appliances industries. As there is no specific entry for Geared Motor , the rate of tax may be determined on the basis of its uses e.g. in the erstwhile VAT Act, the Gearbox used in machinery were known as Machinery Parts, Gearbox used in Automobiles were known as Auto Parts and Gearbox used in Tractor were known as Tractor parts and even though these three were Gearbox, as per different designs and use in different sectors, the tax rates were applicable acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. whether Geared Motor falls under Chapter Heading 8483 or 8501 of the Customs Tariff Act, 1975. On the basis of the classification of the said product, it will be leviable to appropriate rate of Goods and Services Tax prescribed under Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 issued under the Central Goods and Services Tax Act, 2017 (herein after referred to as the CGST Act, 2017 ) and corresponding Notification issued under the Gujarat Goods and Services Tax Act, 2017 (herein after referred to as the GGST Act, 2017 ) or the Integrated Goods and Services Tax Act, 2017. 7.2 It is observed that the Explanation (iii) and (iv) of the Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 provides as follows :- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supra) dealt with the interpretation of the provisions of the Central Excise Tariff there can be no doubt that the HSN Explanatory Notes are a dependable guide even while interpreting the Customs Tariff. 8.1 It is observed that Gears and gearing; gear boxes and other speed changers, including torque converters fall under Chapter Heading 8483 whereas Electric Motors fall under Chapter Heading 8501. The product Geared Motor is an assembly product of the Electric Motor and Gear Box . It is submitted that there is no specific entry for the product Geared Motor either under Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 or under the Customs Tariff Act, 1975. 8.2 The Explanatory Notes for Gear Boxes and other Spe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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