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2018 (6) TMI 703 - AAR - GSTClassification of goods - Lightning Arrester - Earthing Pipe - Solid Rod Earthing - Back Fill Compound - service of installation of Earthing System. Lightning Arrester - whether classified under Chapter Heading 8535 or otherwise? - Held that - The Tariff Heading 8535 covers the products Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, fuses, lightning arresters, voltage limiters, surge suppressors, plugs and other connectors, junction boxes), for a voltage exceeding 1,000 volts . Thus, the product Lightning Arrester is specifically covered under Tariff Heading 8535. Earthing Pipe - whether classified under Chapter Heading 8535 or otherwise? - Held that - The product Earthing Pipe is specifically processed to make usable solely and principally for lightning arrester system and it is placed below ground level and connected with the Lightning Arrester system - the parts suitable for use solely or principally with the apparatus of headings 8535, 8536 or 8537 are covered under Tariff Heading 8538. Accordingly, the product Earthing Pipe merit classification under Tariff Heading 8538. Solid Rod Earthing - whether classified under Chapter Heading 8535 or otherwise? - Held that - The Solid Rod Earthing are solid iron rods of required size, which are machined at both ends for easy fitting. Tariff Heading 7215 covers Other bars and rods of iron or non-alloy steel which covers the product Solid Rod Earthing . Had the product Solid Rod Earthing been such as usable solely and principally for lighting arrester system, it would have been classifiable under Tariff heading 8538, however nothing is available on record to suggest so - product do not merit classification under Tariff Heading 8538. Back Fill Compound - whether classified under Chapter Heading 3824 or otherwise? - Held that - The product Back Fill Compound is prepared by mixing Bentonite Powder, Wood Charcoal Powder and Graphite Powder. Tariff Heading 3824 covers Prepared binders for foundry moulds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included . Accordingly, the product Back Fill Compound merit classification under Tariff Heading 3824. Service of installation of Earthing System - Held that - Electrical installation services including Electrical wiring & fitting services, fire alarm installation services, burglar alarm system installation services fall under Service Accounting Code 995461. Accordingly, the Service Accounting Code 995461 covers the service of installation of Earthing System provided by the applicant. Ruling - The product Lightning Arrester is classifiable under Tariff Heading 8535. The product Earthing Pipe is classifiable under Tariff Heading 8538. The product Solid Rod Earthing is classifiable under Tariff Heading 7215 and is correctly classifiable under Tariff Heading 7215. The product Back Fill Compound is classifiable under Tariff Heading 3824. The service of installation of Earthing System is classifiable under Service Accounting Code 9954.
Issues: Classification of products manufactured and services provided by M/s. Rapid Electrodes Pvt. Ltd.
Analysis: 1. Lightning Arrester: The applicant described the manufacturing process involving solid iron rods and iron strips, inspection, machining, electroplating, and packaging. The Authority observed that Tariff Heading 8535 specifically covers electrical apparatus for switching or protecting electrical circuits, including lightning arresters. Therefore, the product 'Lightning Arrester' is appropriately classified under Tariff Heading 8535. 2. Earthing Pipe: The applicant detailed the manufacturing process of earthing pipes, involving hollow iron pipes, iron strips, welding, filling with a mixture, electroplating, and packaging. The Authority noted that parts suitable for use with apparatus under headings 8535, 8536, or 8537 are classified under Tariff Heading 8538. As the earthing pipe is processed solely for lightning arrester systems, it falls under Tariff Heading 8538. 3. Solid Rod Earthing: The applicant explained the manufacturing process of solid rod earthing involving solid iron rods, machining, threading, and electroplating. The Authority determined that Tariff Heading 7215 covers 'Other bars and rods of iron or non-alloy steel,' which includes solid rod earthing. Since there was no evidence to suggest its sole use for lightning arrester systems, it is classified under Tariff Heading 7215. 4. Back Fill Compound: The applicant described the preparation process involving mixing bentonite powder, wood charcoal powder, and graphite powder. The Authority found that Tariff Heading 3824 covers prepared binders and chemical products, which includes the backfill compound. Additionally, as per Note 1 of Chapter 25, products obtained by mixing, like the backfill compound, do not fall under Tariff Heading 2508. Therefore, the backfill compound is appropriately classified under Tariff Heading 3824. 5. Service of Installation of Earthing System: The applicant provides installation services for earthing systems, which fall under Service Accounting Code 995461 for electrical installation services. The Authority confirmed that the service of installation of the earthing system provided by the applicant is correctly classified under Service Accounting Code 995461. In conclusion, the Authority ruled that the products and services supplied by M/s. Rapid Electrodes Pvt. Ltd. are classified as follows: - Lightning Arrester: Tariff Heading 8535 - Earthing Pipe: Tariff Heading 8538 - Solid Rod Earthing: Tariff Heading 7215 - Back Fill Compound: Tariff Heading 3824 - Service of Installation of Earthing System: Service Accounting Code 9954.
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