2018 (6) TMI 704 - AAR - GST

Classification 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.

Summary

Issues: Classification of products and services provided by M/s. Docsun Power Pvt. Ltd.

Classification of Lightning Arrester:
The applicant manufactures Lightning Arresters using Solid Iron Rods and Iron Strip, which are processed and coated before dispatch. The Tariff Heading 8535 covers electrical apparatus for switching or protecting electrical circuits, including Lightning Arresters. Thus, the Lightning Arrester falls under Tariff Heading 8535.

Classification of Earthing Pipe:
The Earthing Pipe is manufactured by inserting Iron Strip into hollow Iron Pipes and filling them with a mixture of bentonite, wood charcoal, and graphite powder. Since the Earthing Pipe is specifically processed for use with Lightning Arrester systems, it is classified under Tariff Heading 8538, covering parts suitable for use with electrical apparatus.

Classification of Solid Rod Earthing:
The Solid Rod Earthing is made from Solid Iron Rods processed for easy fitting. While it could have been classified under Tariff Heading 8538 if solely used for Lightning Arrester systems, the lack of evidence leads to its classification under Tariff Heading 7215, covering bars and rods of iron or non-alloy steel.

Classification of Back Fill Compound:
The Back Fill Compound is a mixture of Bentonite Powder, Wood Charcoal Powder, and Graphite Powder, falling under Tariff Heading 3824 for prepared chemical products. It does not qualify under Tariff Heading 2508 for clays due to the mixing process, nor under Tariff Heading 2805 for metals. Therefore, it is appropriately classified under Tariff Heading 3824.

Classification of Installation Service:
The service of installing the Earthing System, including wiring and fitting services, is classified under Service Accounting Code 995461. This code covers electrical installation services, aligning with the nature of the service provided by the applicant.

In conclusion, the Authority for Advance Ruling classified the products and services provided by M/s. Docsun Power Pvt. Ltd. as follows: Lightning Arrester under Tariff Heading 8535, Earthing Pipe under Tariff Heading 8538, Solid Rod Earthing under Tariff Heading 7215, Back Fill Compound under Tariff Heading 3824, and the installation service under Service Accounting Code 9954.