TMI Blog2018 (10) TMI 1053X X X X Extracts X X X X X X X X Extracts X X X X ..... le Industry and therefore it is to be seen that they are to be classified under HSN 85443000. Rate of tax - Held that:- The product in question is an Electrical Wiring Harness set falling under 85443000. Winding Wires, Coaxial cables and optical Fiber falls under Chapter Heading 854410, 854420 and 854470 respectively. Therefore, the product in question is covered under Sl.No. 161 of Schedule IV above of Notification No. 1/2017-C.T.(Rate) dated 28.06.2017 and G.O. (Ms) No. 62 dated 29.06.2017 No. Il(2)/CTR/532(d-4)/2017 and is subject to tax at the rate of 14% CGST and 14% SGST. The said Notification is amended as per Notification No. 41/2017- C.T.(Rate) dated 14th November 2017 and G.O. (Ms) No. 157, dated 14.11.2017 by which the Entry at SI.No. 161 of Schedule IV was omitted and the entry at SLNo. 395 of Schedule III was modified as 'Insulated (including enameled or anodized) wire, cable (including co-axial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fibre cables, made up of individually sheathed fibres, whether or not assembled with electric conductors or fitted with connectors'. Thus, the ‘Electrical Wiring Harness manu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnectors at both ends, manufactured by the Applicant falls under the HSN tariff item 8544 for which the rate prescribed vide Notification no 1/2017 -Central tax (Rate) dated 28 June 2017 read with 41/2017 -Central tax (Rate) dated 14th November 2017 is 9% ? 2.Whether the said rate of Central tax of 9 0/0 is applicable to the above product with effect from 1st July 2017? 2.0 WABCO has stated that they are engaged in manufacture of brake systems and related parts for heavy vehicles such as trucks, bus and other such commercial vehicles. The Electrical Wiring Harness is primarily an electrical wire with connectors at both ends and this product, manufactured by the applicant, is supplied to automobile manufacturers for applications in Anti-skid Braking Systems (ABS) in heavy vehicles. The Electrical Wiring Harness consists of Connectors accessories, Wires Cables, Tapes - Flame retardant (FR) grade for Wiring Harness applications, corrugated tubes - Flame retardant (FR) grade for Wiring Harness applications and are used to distribute the electrical energy from one point to another. The Applicant manufactures the wiring harness following the ISO standards prescribed for auto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dule IV till its amendment in November 2017, when tariff 8544 figures only in Schedule III. They stated that their goods are wiring harness which will fit the description of 8544.30 as other wiring sets used in vehicles as this is used in brakes. They stated that the notification rate of 9% should be applicable from 01/07/2017 onwards. They submitted write up on the product, images, invoices pre-and post GST. They also submitted Circular 25/88 Cx dated 17.11.1988 issued by CBEC on classification of wiring harness as under 8544. 4. The documents submitted by the Applicant have been examined. It is seen that a wiring harness is a set of wires, terminals and connectors that run throughout entire vehicle and relay information and electric power used in starting engine, lights, meters, power windows, doors, brakes and other devices in the vehicle. The wiring harness are made up of connectors, wires, cables, flame retardant tapes and corrugated tubes. This product is specifically used in Anti-lock braking system. The major customers are Tata Motors Limited Ashok Leyland Ltd along with after-market sales to wholesalers retailers. Sample invoices provided indicate that the product i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a kind used in vehicles, aircraft or ships HSN Explanatory Notes to chapter 8544 states: Provided they are insulated, this heading covers electric wire, cable and other conductors(e.g. braids, strips, bars) used as conductors in electrical machinery, apparatus or installations. . ...Wires, cable etc, remain classified in this heading if cut to length or fitted with connectors(e.g. plugs, sockets, lugs, jacks, sleeves or terminals) at one or both ends. The heading also includes wire etc. of the types described above made up in sets (e.g. multiple cables for connecting motor vehicle sparking plugs to the distributor). The applicant manufactures Electrical Wiring Harness which are insulated wires and cables with connectors which is used in automobile Industry and therefore it is to be seen that they are to be classified under HSN 85443000. It is true that the items are parts of motor vehicles. Section note 2 to Section XVII covering chapter 87, is as follows: 2. The expressions parts and parts and accessories do not apply to the following articles, whether or not they are identifiable as for the goods of this Section: (f) Electrical machinery or equipment ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the entry at SLNo. 395 of Schedule III was modified as follows: Insulated (including enameled or anodized) wire, cable (including co-axial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fibre cables, made up of individually sheathed fibres, whether or not assembled with electric conductors or fitted with connectors These amendments were made effective from 15.11.2017. From the above, it is clear that the Electrical Wiring Harness manufactured by the Applicant, was subjected to tax @ 14% CGST and 14% SGST for the period from 01.07.2017 to 14.11.2017 and thereon, the tax rate is reduced to 9% CGST and 9% SGST. 6. In view of the foregoing, we rule as under: RULING 1. The Electrical Wiring Harness manufactured by the Applicant falls under the HSN tariff item No. 85443000 for which the rate prescribed is 14% CGST under Sl.N0. 161 of Schedule IV of Notification No. 01/2017-C.T. (Rate) dated 28th June 2017 and SGST from Sl.No. 161 of Schedule IV of G.O. (Ms) No. 62 dated 29.06.2017 No. II(2)/CTR/532(d-4)/2017 for the period from 01.07.2017 to 14.11.2017 and from 15.11.2()17, the rate of tax is 9% CGST under Sl.No ..... X X X X Extracts X X X X X X X X Extracts X X X X
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