9911796707
TMI Blog2019 (7) TMI 1734X X X X Extracts X X X X X X X X Extracts X X X X ..... parts to seat makers who affix the parts into the seats and thereafter the seat is affixed to the motor vehicle. The applicant claims that the item seat adjuster merits classification under Serial No. 435A of Notification No.1/2017-Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 41/2017- Central Tax (Rate) dated 14.11.2017. 2. Issue for Ruling: 2.1 Whether the product; namely 'seat adjuster' merit classification under Chapter 8708 at Serial No. 170 of Notification No. 1/2017- Central Tax (Rate) dated 28.06.2017 or under Chapter 9401 at Serial No. 435A of Notification No.1/2017-Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 41/2017- Central Tax (Rate) dated 14.11.2017. 3. Discussion: 3.1 The Applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the purpose of the present application is Haryana Goods and Services Tax Act, 2017 ("HGST"). The provisions of CGST and HGST are in pari materia. 3.4 Even after the implementation of Goods and Service Tax ("GST"), the Applicant classified 'seat adjuster' under the same HSN 9401 at Serial No. 211 under Schedule IV of Notification No.1-Central Tax (Rate) dated 28.06.2017 (hereinafter referred as "Notification No.1"). The applicable rate of CGST was 14% and an equivalent rate of HGST was also payable. The cumulative rate of CGST/HGST came to be 28%. 3.5 However, the rates of goods under CGST underwent a change vide Notification No.41-Central Tax (Rate) dated 14.11.2017 (hereinafter referred as "Notification No.41") wherein the rates of vario ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.8 In view of the aforesaid, the present application is being preferred by the Applicant to seek clarity on the appropriate classification of 'seat adjuster'. 4. Findings: 4.1 The personal hearing opportunity was given to the applicant. Sh. Onkar Sharma & Sh. Rakesh Singla (AGM Finance), the authorised representative of the applicant presented the views of the applicant on 17.07.2019. The applicant has been heard at length, the documents tendered have been perused and the legal provisions have been read thread-bare. 4.2 Seat adjuster helps the driver and co-passenger to get into the most comfortable leg position inside the car by using it to move the seat forward and backward as per their convenience to maintain safe posture and positi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conclusion that the items manufactured by the assesse are only adjuncts, additions to the seats for the better utilization of the seats for comfort and convenience of the passengers and they are not essential components or parts of seats. That the seats are complete in themselves without these mechanisms and therefore do not merit classification as parts of seats under Chapter 9401.00. Tribunal relying upon a judgment of this Court in the case of Mehra Brothers v. Joint commercial Officer reported in 1991 (51) ELT 173 (SC) = 1990 (11) TMI 144 - SUPREME COURT held that the products manufactured by the assessee merited classification under chapter heading 8708.00 as 'parts and accessories of motor vehicles'. It seems from the above that cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid Judgement, Hon'ble Supreme Court of India in second last Para at page 4 agreed with the view taken by the tribunal and made it clear that Chapter Heading 8708.00 covers parts and accessories of motor vehicles and this chapter heading is wide enough in its scope so as to cover all accessories of motor vehicles whereas Chapter heading 9401.00 covers all type of seats and parts thereof. The Concluding words of the Judgement are reproduced here as under: 'We agree with the view taken by the Tribunal that the products manufactured by the assessee cannot be the 'parts' of seats, as claimed by the revenue. Chapter heading 8708 covers both the 'parts' as well as 'accessories'. The items manufactured by the assessee are only adjuncts. These ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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