TMI Blog2020 (7) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... re being supplied to be used in many fields including electronic goods, solar energy and vehicles. - GST-ARA-47/2019-20/B-33 - - - Dated:- 17-3-2020 - MS. P. VINITHA SEKHAR, AND MR. A.A. CHAHURE, MEMBER PROCEEDINGS (Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) The present application has been filed under Section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as the CGST Act and MGST Act respectively] by M/s. A Raymond Fasteners India Pvt. Ltd, the applicant, seeking an advance ruling in respect of the following questions. A.1 Whether Threaded metal nuts which function same as standard nut, merits classification under the Tariff item 7318 16 00 and not under Tariff item 8708 99 00? A.2 Whether Plastic rivets not only being capable of being used in the fitment of trims on the body of a motor vehicle but in other industries for similar functionality, merits classification under Tariff item 3926 90 99 and not under Tariff item 8708 99 00? A.3 Whether Quick Adapter not only capable of being used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pvt. Ltd., (Applicant) is as under: 2.1 Applicant is involved in developing and manufacturing industrial clips and fasteners, prototyping assembly systems, etc. (referred to as the Products ), which are used by their customers in the manufacture of automobiles, engineering goods, etc. 2.2 Supply of the Products by the Applicant qualifies as a supply in terms of the CGST Act, 2017 and is liable to GST. 2.3 The said Products are to be classified in terms of Notification No. 1/ 2017 - C.T. (Rate) dated 28th June, 2017 which is the Notification for payment of applicable COST, and corresponding Notifications of MGST and IGST. 2.4 Explanation (iii) and (iv) of the Classification Notification establishes a link between the Classification Notification and Customs Tariff Act, 1975 ( CTA ) and in terms of the same, classification of goods in the GST regime is to be done in tandem with the CTA, and the rules for interpretation of the First Schedule of the CTA, along with the Section Notes. Chapter Notes and General Explanatory Notes would also be applicable to classification of goods post the introduction of GST. 2.5 The applicant has stated that certain Section Notes a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Stainless Steel (Metal) 7220 20 90 8708 99 00 03. CONTENTION - AS PER THE JURISDICTIONAL OFFICER: In this regard submission made by the jurisdictional officer is as under:- 3.1 Applicant is a manufacturer of automobile parts, many of which also happen to be parts capable of being used for general purposes. However, as the customers of the applicant are automobile/ auto part manufacturers, there should not be any ambiguity about the classification of the products which are to be used by automobile/auto part manufacturers. Even though it appears that because of the exclusive use of all their products in automobiles, these parts merit classification under the heading 8708, part wise comments are provided on the basis of the Rules for interpretation, section notes and explanatory notes. 3.2 As per the detailed comments and reasoning, the jurisdictional officer has classified the said products as under:- 3.2.1 Metal Nuts with metrical threads, Metal Nuts without metrical threads and Metal Spring Nuts : In view of the specific exclusion of parts of general use as defined in Note 2 to Section XV, of base metal (Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecific use, which in this case is for automobiles (exterior) merit classification under the heading 87082900. 3.2.8 Moulding Fasteners, Spoiler Lips: As explained by the applicant, these parts are parts of the body and hence, merit classification under the heading 87082900. 3.2.9 Bracket (Metal Assemblies): As per the applicant s submission, this part is used to support wiring harness and pipes in the engine compartment of the vehicle. Hence, this part seems to merit classification under the heading 87089900. 3.2.10 Stainless Steel (Metal): Stainless Steel (Metal) merits classification under the heading 72202090, in view of its general use and apparent lack of tailor made requirement. 3.3 Recommendations/suggestions are provided on the basis of information provided by applicant. However, if customers of the applicant are exclusively automobile or auto part manufacturers, then all products manufactured by them should be classified under the appropriate sub-heading of 8708. 04. HEARING Preliminary hearing in the matter was held on 10.12.2019. Shri Abhinay Kapoor, Advocate appeared and requested for admission of the application. Jurisdictional Officer Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Advance Ruling Authority requesting for a Ruling in respect of classification of 33 of its products. against which an order was passed by the Hon ble Bench. 5.4.2 Being aggrieved by the order passed by the West Bengal Advance Ruling Authority, the said applicant filed an appeal before the Hon ble Appellate Authority for Advance Ruling under GST, West Bengal and the same was decided by the said authority. 5.4.3 However, the Appellate Authority in para no. 5 of its order observed as under:- 5. We observe that Advance Ruling has been sought by the Appellant for 33 different products, each with different ingredients and different uses. It is not that the products listed can be clubbed intone single category to pass a Ruling. Instead, each product has to be taken up separately and considered carefully. The Appellant should have applied for each product individually since classification is sought for each individual product. Authority for Advance Ruling is cautioned against accepting similar applications in future where multiple products are covered in a single application. 5.5 In view of the said observations of the Appellate Authority for Advance Ruling under G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Base Metals and Articles of Base Metals and comprises of Chapters 72 to 83. Note 2(a) to Section XV states that Throughout this Schedule, the expression parts of general use means articles of heading 7307, 7312, 7315, 7317 or 7318 and similar articles of other base metal . Note 2 further states that in Chapters 73 to 76 and 78 to 82 (but not in heading 7315) references to parts of goods do not i.iclude references to parts of general use as defined above. 5.8 We find that Chapter Sub-Heading 7318 of the GST Tariff Act, covers Screw, bolts, nuts, coach-screws, screw hooks, rivets, cotters, cotter-pins, washers (including spring washers) and similar articles, of iron or steel. Nuts are seen to be covered under Chapter S H 7318. This Chapter covers both, Threaded and Non-threaded Articles and Threaded Nuts are covered under Tariff Item 7318 16 00. 5.9 We have already reproduced Note 2(b) to Section XVII and as per the said Note, the expressions parts and parts and accessories do not apply to parts of general use, as defined in Note 2 to Section XV. We have no doubt that the subject products under discussion i.e. Metal Nuts with metrical threads, Metal Nuts with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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