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TMI Blog2023 (12) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... vance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Rulings, Chennai under Sub-section (1) of Section 100 of Central Goods and Service Tax Act / Tamil Nadu Goods and Service Tax Act 2017 ( the Act in short) within 30 days from the date on which the ruling sought to be appealed against is communicated. 2. In terms of Section 103(1) of the Act, this Advance ruling pronounced by the Authority under Chapter XVII of the Act shall be binding only- (a) on the applicant who had sought it in respect of any matter referred to in subsection (2) of section 97 for advance ruling; (b) on the concerned officer or the jurisdictional officer in respect of the applicant. 3. In terms of Section 103(2) of the Act, this advance ruling shall be binding unless the law, facts or circumstances supporting the original advance ruling have changed. 4. In terms of Section 104 of the Act, where the Authority finds that advance ruling pronounced by it under sub-section (4) of Section 98 or under sub-section (1) of section 101 has been obtained by the applicant by fraud or suppression of material facts or misrepresentation of facts, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yers declared description, they are manufacturing Two Wheeler Seat Covers for Bikes and Scooters. In the said manufacturing process, the U foam purchased from other dealers are cut to the shape of two wheeler seat along with rexine sheets and stitched, and the said Seat Covers are fitted into Two Wheelers like Bike and Scooter. No service had been provided by the dealers and the entire collection and payment of taxes are under the category of Manufacturing and selling of goods . A close scrutiny of the sale invoices raised by the tax payer shows that they are manufacturing and selling scat cover to various variant of Hero Motor Cycles which cannot be used for other motor cycles, as the same is manufactured and sold as per the specifications of requirement of the Hero Motors cycles and made to fit to the exact requirement. Now it has to be decided that the sale of seat covers falls under HSN code 9401 2000 or 87089900 or otherwise. When the entry found in HSN code 9401 2000 categorically specifics the seats of kind of Motors cycles. Now the other question arises whether the seat cover falls under the category or not. Definitely the seat and seat covers are not one and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riff Item Description of Goods 8711 Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without sidecars; 8712 Bicycles And Other Cycles (Including Delivery Tricycles), Not motorised 8713 Carriages for disabled Persons, Whether or not motorised or Otherwise Mechanically Propelled (excluding specially designed motor vehicles and bicycles) 5. The Applicant, after consent, was given an opportunity to be virtually heard on 16.08.2023, wherein Shri. Arumugam, Applicant, appeared for the hearing and reiterated the submissions made in the application. He further stated that, the seat covers are only extra fittings for the bike and not a main component/accessory and that presently they are adopting HSN 94012000 and paying GST @18%. He stated that previously they were paying GST @ 28 % for the same commodity under HSN 8708 whereas their competitors were adopting either 5% or 18% under HSN code 87149990 or 94012000 respectively for the same commodity and hence the Applicant were unable to compete in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of goods 8705 Special purpose motor vehicles The above CTH i.e. 8701 to 8705 covers Motor Vehicles such as Tractors, Motor cars, etc. and not two wheelers. A plain reading of the above table makes it clear that CTH 8708 - Parts and accessories of Motor vehicles of Heading 8701 to 8705 is not applicable to the goods dealt with by the Applicant, as their product is seat covers for Two Wheeler which are not parts and accessories of Motor Vehicles falling under headings 8701 to 8705, listed supra. Hence, the CTH 8708 is ruled out. II) The next entry adopted is CTH 9401, which falls under the Section XX of HSN i.e Miscellaneous Manufactured Articles , relevant portion of which is reproduced as under: Chapter/ Heading/ Tariff Item Description of Goods 9401 Seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof 9401 20 Seats of a kind used for motor vehicles The above heading 940120 covers Seats for motor vehicles , whereas the Applicant is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extends to the rider and pillion rider. Thus the seat cover is nothing but an accessory, which is generally bought by the customer for protection and comfort purpose. The features of the seat cover are distinct and clearly distinguishable from seat. 6.8. From the above, we find that seat covers are accessories to Two Wheelers. Chapter 87 covers Vehicles other than railway or tramway rolling stock, and Parts and accessories thereof, under which parts and accessories of two wheelers specifically find place under 8714, which is given as under: Chapter/ Heading/ Tariff Item Description of Goods 8714 Parts and Accessories of Vehicles of Headings 8711 to 8713 8714 99 Other 8714 99 10 Bicycle chains 8714 99 20 Bicycle wheels 8714 99 90 Other The headings CTH 8711 and 8713, are described as under: Chapter/ Heading/ Tariff Item Description of Goods 8711 Motorcycle ..... X X X X Extracts X X X X X X X X Extracts X X X X
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