TMI Blog2021 (1) TMI 369X X X X Extracts X X X X X X X X Extracts X X X X ..... f machine would be classified in the same heading of the particular machine or class of machine. Further, parts which can be used as such and are not suitable for any particular machine or class of machine and may be common to a number of machine falling in different headings are to be classified in heading 84.87 (if not electrical) or in heading 85.48 (if electrical). The applicant has contended that the product viz. Hybrid Hydraulic Servo System may merit classification under 8479 with description Machines and mechanical appliances having individual functions, not specified or included elsewhere in this Chapter [other than Composting Machines] - It is found that Tariff Heading 8479 of custom Tariff Act, 1975 covers the Machine and Mechanical appliances having individual functions, not specified or included elsewhere in this chapter. Tariff Heading 8479 as per Harmonised System of Nomenclature. The applicant has submitted the catalogue of the product, wherein design and scientific parameter of manufacture of the product is given. However, they did not mention the usage of the said product in the different type of machines or class of machines. Further, it is seen that ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 84136090 3. Electric Invertor 85044010 4. Input line Choke 85045010 5. EMI Filter 85322200 6. Supply Cable 85444999 7. Feed Back Couple 85444999 8. Brake Resistor 85332119 9. Coupling 84836010 10 L-type Bracket/Bell housing 84779000 11 Inlet/outlet Flange 84779000 12 Outlet Manifold 84818030 13 Pressure Transducer 90262000 3. The applicant submitted that Hybrid Hydraulic Servo System is prepared by assembling and joining items like Servo Motor, Hydraulic Pump, Electrical Invertor, Input Line Choke, EMI Filter, Supply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation for Hybrid Hydraulic Servo System which is prepared by assembling various parts and is used as part in different type of machines? 2. What will be the applicable tax rate on Hybrid Hydraulic Servo System? Applicant s Interpretation of Law/Taxation under GST Regime 8. The applicant submitted that they are of bonafide belief that Hybrid Hydraulic Servo System should be classified under Tariff Item 84799090 of the First Schedule to the Custom Tariff Act, 1975 as it is used as a part of machines or machinery. 9. The applicant further submitted that their bonafide belief is that the total rate of GST for Hybrid Hydraulic Servo System should be 18% considering the following entries in Schedule III to Not. No. 01/2017-CT (Rate) dated 28.06.2017 that attracts 9% rate of CGST and 9% SGST. Relevant extract from Not. No. 01/2017-CT (Rate) dated 28.06.2017 as under: SCHEDULE III Sl.No. Chapter/Heading/Sib-heading/Tariff item Description of Goods 366 8479 Machines and mechanical appliances having individual functions, not specified or included ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4779000 12 Outlet Manifold 84818030 13 Pressure Transducer 90262000 13. The applicant submitted that Hybrid Hydraulic Servo System is used in the machine to give right solution for Servo pump control, providing precise pressure and flow control and avoiding the energy waste. 14.1 The issue involved in this case pertains to classification of the product Hybrid Hydraulic Servo System i.e. whether the said product falls under Chapter Heading 8479 or any other suitable Chapter Heading 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 28-6-2017 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 (hereinafter referred to as the GGST Act, 2017 ) or the Integrated Goods and Services Tax Act, 2017. 14.2 It is observed that the Explanat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll cases to be classified in their respective headings; (b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517; (c) All other parts are to be classified in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate or, failing that, in heading 8487 or 8548. 15.1 It is observed that in the application for advance ruling, the applicant has submitted that product viz. Hybrid Hydraulic Servo System used as parts of various machine like Plastic Injection moulding machine or rubber injection moulding machine or as machine tools in hydraulic press or in compression moulding press or in deep drawing press or as a part of other machines. 16. General Note of Parts of Section XVI of Harmonised System of Nomenclature is read as under: In general ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hine. Further, parts which can be used as such and are not suitable for any particular machine or class of machine and may be common to a number of machine falling in different headings are to be classified in heading 84.87 (if not electrical) or in heading 85.48 (if electrical). 17.1 As per Harmonised System of Nomenclature, Chapter Heading 84.87 and 85.48 is read as under: 84.87 - Mahinery parts not containing electrical connectors, insulators, coils, contacts or other electrical features, not specified or included elsewhere in this chapter. 8487.90- Other This heading covers non-electrical parts not classified elsewhere. 85.48 Waste and scrap of primary cells, primary batteries and electric accumulators; spent primary cells, spent primary batteries and spent electric accumulators; electrical parts of machinery or apparatus, not specified or included elsewhere in this chapter . 8548.10 Waste and scrap of primary cells, primary batteries and electric accumulators; spent primary cells, spent primary batteries and spent electric accumulators 8548.90- Other 18. The applicant has contended that the product viz. Hybrid Hydraulic Servo Sys ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s requested to submit the usages of the product viz. Hybrid Hydraulic Servo System in the machinery and catalogue of the said product. The applicant has submitted the catalogue of the product, wherein design and scientific parameter of manufacture of the product is given. However, they did not mention the usage of the said product in the different type of machines or class of machines. Further, it is seen that applicant in the application has submitted that, Hybrid Hydraulic Servo System as such Servo System or Drive give right solution for Servo pump control, providing precise pressure and flow control and avoiding the energy waste thus creating added value for customers in terms of energy efficiency and higher mould quality . Hence, it appears that the product does not have any individual functions or it can be stated that the said product cannot perform itself which is the prime condition for classification under Heading 8479 of Custom Tariff Act, 1965. Therefore, the said product cannot be classified in the Chapter heading of 8479 of Customs Tariff Act, 1975. 21. In view of the above discussion, we rule that the product viz. Hybrid Hydraulic Servo System merits classi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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