2018 (10) TMI 450 - AAR - GST

Classification of goods - Stainless Steel Chilly Cutter - Product Chilly Cutter made of Stainless Steel, whether classifiable under HSN 7323 or otherwise? Held that - The product Chilly Cutter of the applicant weighs 210 grams i.e. less than 10 kgs. It consists of crank handle to rotate the cutter (cutting blade of Stainless Steel). Thus, the product Chilly Cutter of the applicant is mechanical appliance, having mechanical features described in the Explanatory Notes. The product Chilly Cutter of the applicant is hand operated, non-electric mechanical appliance. As per the Explanatory Notes, Vegetable or fruit slicers, cutters and peelers, including potato chippers are specifically covered under Heading 82.10 - the product S.S. Chilly Cutter supplied by the applicant is classifiable under Heading 8210 00 00. Heading 7323 covers Table, Kitchen or other household articles and parts thereof, of iron or steel; iron or steel wool; pot scourers and scouring or polishing pads, gloves and the like, of iron or steel - The Explanatory Notes for Heading 73.23 of Harmonised System of Nomenclature further provides that this heading excludes, inter-alia, Household articles having the character of tools, e.g., shovels of all kinds; corkscrews; cheese craters, etc.; larding needles; can openers; nut-crackers; bottle openers; curling irons, pressing irons; fire-tongs; egg whisks; waffling irons; coffee-mills, pepper-mills; mincers; juice extractors, vegetable pressers, vegetable mashers (Chapter 82) . As the product Chilly Cutter supplied by the applicant is found to be specifically covered under Heading 82.10, the same is not classifiable under Heading 73.23 in view of Explanatory Notes for heading 73.23 as well as Section Note 2 of Section XV of the Customs Tariff Act, 1975. Ruling - The product Chilly Cutter made of Stainless Steel, supplied by M/s. Meera Metals is classifiable under Heading 8210 00 00 and not under Heading 7323.

Summary

Issues:
Classification of Stainless Steel Chilly Cutter under HSN 7323 or 8210.

Analysis:
1. The applicant, engaged in manufacturing Stainless Steel Chilly Cutters, sought classification clarification under HSN 7323 or 8210.
2. The product comprises stainless steel and plastic parts, primarily used for kitchen purposes by housewives.
3. The manufacturing process involves stainless steel and plastic components, including cutting, polishing, and assembly.
4. The applicant argued for classification under HSN 7323, emphasizing the product's kitchenware nature.
5. The Central Goods and Services Tax Commissionerate, Rajkot, opined that the product may fall under HSN 8210 due to its specific use.
6. The primary issue revolved around the proper classification of the Stainless Steel Chilly Cutter.

Legal References:
1. Explanation in Notification No. 1/2017-Central Tax (Rate) defines terms like "Tariff item," "sub-heading," "heading," and "Chapter."
2. The Supreme Court precedent highlighted the significance of the Harmonized System of Nomenclature (HSN) for tariff classification disputes.
3. Tariff Item 8210 covers hand-operated mechanical appliances used in food preparation, conditioning, or serving.
4. Explanatory Notes for Heading 82.10 detail non-electric mechanical appliances under 10 kg, including slicers, cutters, and peelers.
5. Section Note 2 of Section XV excludes articles of Chapter 82 or 83 from other specified chapters.
6. Heading 7323 encompasses household articles of iron or steel, excluding specific tools like can openers and mincers.

Judgment:
1. The product, being a hand-operated mechanical appliance under 10 kg, falls under Heading 8210 00 00.
2. Explanatory Notes and Section Note 2 support the classification under Heading 8210 over 7323.
3. Therefore, the ruling classified the Stainless Steel Chilly Cutter under Heading 8210 00 00, not 7323.