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TMI Blog2024 (3) TMI 674X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 may, by order, declare such ruling to be void ab initio and thereupon all the provisions of this Act or the rules made thereunder shall apply to the applicant as if such ruling had never been made. 5. At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. M/s. N. R. Engineering Industries, SF No. 573/1, KNG Pudur Road, Sankara Nagar, Somayampalayam, Coimbatore, Tamilnadu-641108 (hereinafter referred to as the 'Applicant') is engaged in the manufacture of car seat Cushion Suspension wires and st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the required shape. After this process, in the end of the hook a hole is punched to hold the cable (photo attached). 3.2. On interpretation of law, the Applicant states that - * Under the Goods and Services Tax Act, both Central Goods and Services Tax Act and State Goods and Services Tax Act, the rate of tax for the goods and services are specified in the notifications issued by virtue of the powers conferred under section 9 of the respective Acts; The rate of tax for the goods are specified in the Notification No. 1/2017-C.T.(Rate) dated 28-6-2017 as amended from time to time; The rate of tax depends upon the Description of the goods specified in the notification and Chapter/ Heading/ Sub-heading/ Tariff item; The clause (iii) and clause (iv) of this notification reads as under: "(iii) "Tariff item", "sub-heading", "heading" and "Chapter" shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (iv) The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are made of other than Wood. So the Car Seat Cushion Suspension Wires and steel hooks will be covered by the HSN 94019900. * They rely on the decision of the Hon'ble Authority for Advance Ruling in the case of M/S. Daebu Automotive Seat India Private Limited passed on 7th May 2021. The reference number is TN/17/ARA/2021. This is reported in 2021 (6) TMI 685-Authority For Advance Ruling, Tamilnadu, wherein para 8.5 of the decision, it has been observed by the AAR as follows: Tariff Item Description (1) (2) 8708 PARTS AND ACCESSORIES OF THE MOTOR VEHICLES OF HEADINGS 8701 TO 8705 8708 10 - Bumpers and parts thereof : 8708 10 10 --- For tractors 8708 10 90 --- Other . - Other parts and accessories of bodies (including cabs) : 8708 21 00 -- Safety seat belts 8708 22 00 - - Front windscreens (windshields), rear windows and other windows specified in Subheading Note 1 to this Chapter 8708 29 00 -- Other 8708 30 00 - Brakes and servo-brakes; parts thereof 8708 40 00 - Gear boxes and parts thereof 8708 50 00 - Drive-axles with differential, whether or not provided with other transmission components, non-driving axles; parts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the AAR had recently held that the car seat covers would be levied with the highest GST rate of 28%, in the case of M/s. Saddles International Automotive & Aviation Interiors Private Limited. The Members had observed that 'seat cover' are not same as seat as they have different agenda than a seat has altogether. The bench stated in the judgement that, "They are meant for the protection of the seats and functional value of seat covers is the comfort and convenience it extends to the driver and the passengers. Thus, the 'seat covers' are not essential parts of the seats but accessories that enhance their functional value. Even in general trade parlance or in terms of their specific usage, the seat covers are considered as accessories and customized as per the preferences of the clients." 4.2. The Joint Commissioner (ST), Intelligence, Coimbatore has also remarked that no proceeding relating to the question raised by the Applicant is pending in their jurisdiction. 4.3. The Centre jurisdictional Officer, vide their letter dated 11.08.2023, after examining the whether the said goods would fall under chapters heading 8708 and heading 9401 as appearing in the First sch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Hon'ble Supreme Court in the case of Commissioner of C.Ex., Delhi Vs. Insulation Electrical (P) Ltd.[2008 (224) ELT 0512 SC], wherein in a similar case, the Apex court, has held that such goods are classifiable under CETH: 8708. He further stated that the questions raised in the application are not pending or has not been decided in any proceedings in the case of the Applicant as per records. 5. The Applicant, after consent, was given an opportunity to be heard in person on 30.11.2023. Shri P. Paul Thangam, Chartered Accountant, Shri. Aravind Thangam, Chartered Accountant and Shri. K. Ravi Janardhanan, Technical Advisor, who are the Authorized Representatives of the Applicant appeared for the hearing and they reiterated the submissions made in their application. They also showed a specimen of the part manufactured by them to establish that it is a part of seat and submitted copy of Advance Ruling in the case M/s Daebu Automotive seat India (P) Ltd., wherein discussion of part of seat was held. DISCUSSION AND FINDINGS: 6.1. We have carefully considered the submissions made by the Applicant in their application, submissions made during the personal hearing and the comments f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ked to the product that the same cannot be brought into any form without the 'part' in question. 6.5. With this concept of 'part', we proceed to analyse the goods in question. As per the write-up submitted by the Applicant regarding 'Cushion Suspension wire', they have stated that- "The Cushion Suspension wire is used for the manufacture of car seats. This is used to give cushion effect in the car seats. Earlier coil springs were used for this purpose. Now instead of coil springs, Cushion Suspension wires are used for this purpose. There will be a track assembly in the front left and front right car seats. This track assembly has a steel structure in the shape of the seats. The Cushion suspension wires are used between this steel structures. The seat foam is kept over these Cushion Suspension wires. These Cushion Suspension Wires absorb the shades when a car goes through bumps or pot holes. The Cushion Suspension wires are used both in the front and back seats." From the write-up, we find these cushion suspension wire is now-a-days used instead of coil springs and these are used both in front and back seats of a car. Also these are forming part of the ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the heading 'General' states that- "(III) Parts and Accessories : It should be noted that Chapter 89 makes no provision for parts (other than hulls) or accessories of ships, boats or floating structures. Such parts and accessories, even if identifiable as being for ships etc., are therefore classified in other Chapters in their respective headings. The other Chapters of this Section each provide for the classification of parts and accessories of the vehicles, aircraft or equipment concerned. It should, however, be noted that these headings apply only to those parts or accessories which comply with all three of the following conditions: (a) They must not be excluded by the terms of Note 2 to this Section (see paragraph (A) below). And (b) they must be suitable for use solely or principally with the articles of Chapters 86 to 88 (see paragraph (B) below). And (c) they must not be more specifically included elsewhere in the Nomenclature (see paragraph (C) below. (A)...... (B)...... (C) Parts and accessories covered more specifically elsewhere in the nomenclature. Parts and accessories, even if identifiable as for the articles of this Section, are excluded if t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 94019900 thereby attracting CGST of 9% plus SGST of 9%. 7.1. We find that the State jurisdictional Officer had placed reliance on the decision of the Andhra Pradesh Authority for Advance Rulings (AAR), in the case of M/s. Saddles International Automotive & Aviation Interiors Private Limited. We observe that the goods in question in the said case law are 'car seat covers', which cannot be equated to 'Car seat Cushion Suspension wires' and 'Steel hooks', as the former is only an 'accessory' to a motor vehicle seat, whereas the goods in the present issue are essential parts of a seat, as discussed supra. 7.2. We find that the Centre jurisdictional Officer placed reliance on the ruling of the Hon'ble Supreme Court in the case of Commissioner of C.Ex., Delhi Vs. Insulation Electrical (P) Ltd.[2008 (224) ELT 0512 SC], We observe that the goods in questions in the said case law are Rail Assembly front Seat (Omni), Adjuster Assembly slider seat, YF-2, Rear Back Lock Assembly and 1000 CC Rear Back Lock Assembly. These items cannot be equated to 'Car seat Cushion Suspension wires' and 'Steel hooks', as the former items are only an 'acces ..... X X X X Extracts X X X X X X X X Extracts X X X X
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