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2019 (6) TMI 1358 - AAR - GSTMaintainability of Advance Ruling application - Scope of Advance ruling - Classification of imported goods - Threaded metal nuts which function same as standard nut - Plastic rivets not only being capable of being used in the fitment of trims on the body of a motor vehicle but in other industries for similar functionality - Quick Adapter not only capable of being used to connect pipes and tubes in the interior of a motor vehicle, but also for similar functionality in other industries - Plastic pipe clips - Brackets and Channels - Non-Return Valve - Metal U Clips - Fasteners and Spoilers - Bracket - Whether the Subject Product merits classification under Tariff item 7220 20 90 despite being capable of being classified under Chapter 87 of the First Schedule, and not under Tariff item 8708 99 00? Scope of Advance ruling - whether or not the activities undertaken by the applicant pertains to matters or questions specified in Section 97(2)? - HELD THAT - The applicant has raised questions for classification of their inputs imported from out of India and which are used by them in the manufacturing process to produce products which are then supplied to the market. We find primarily that, as per provision of section 95 of CGST ACT, this authority can give a ruling to the applicant on matters or questions raised, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. Supply of goods or not - Section 7 of the GST Act - Scope of supply - HELD THAT - From a reading of the said section it is very apparent that, import of services are alone considered as a supply , not import of goods. Further we find that Section 5 of the IGST Act, the integrated tax on goods imported into India shall be levied and collected in accordance with the provisions of Section 3 of the CTA, 1975 on the value as determined under the said act at the point when duties of Customs are levied on the said goods under Section 12 of the Customs Act, 1962 - Since the subject proposed transaction is itself not a supply under the GST Act, in view of the provisions of Section 95 read with Section 97 of the GST Act, the issue is not within the purview of this authority. This authority is not allowed to answer the question on classification of imported goods since the same is out of the purview of Sec. 95 of CGST Act. Application rejected as not maintainable.
Issues Involved:
1. Classification of Threaded Metal Nuts 2. Classification of Plastic Rivets 3. Classification of Quick Adapter 4. Classification of Plastic Pipe Clips 5. Classification of Brackets and Channels 6. Classification of Non-Return Valve 7. Classification of Metal U Clips 8. Classification of Fasteners and Spoilers 9. Classification of Bracket 10. Classification of Stainless Steel Washer Detailed Analysis: 1. Classification of Threaded Metal Nuts: The applicant argued that Threaded Metal Nuts should be classified under Chapter 73 of the First Schedule, specifically under Tariff item 7318 16 00, as they are similar to standard nuts and not limited to the automotive sector. The Authority noted that in the pre-GST regime, these were classified under Chapter 87, Tariff item 8708 99 00. The applicant cited Section Note 2(b) of Chapter XVII and Section Note 2(a) of Section XV of the CTA, which disqualify "parts of general use" from being classified under Chapter 87. The Authority agreed with the applicant's interpretation that the most specific description should be preferred, thus classifying Threaded Metal Nuts under Tariff item 7318 16 00. 2. Classification of Plastic Rivets: The applicant contended that Plastic Rivets should be classified under Chapter 39, Tariff item 3926 90 99, as they are similar to nuts made of plastic and can be used in various industries. The Authority noted that in the pre-GST regime, these were classified under Chapter 87, Tariff item 8708 99 00. The applicant cited Section Note 2(b) of Chapter XVII and Rule 3(a) of the General Rules for Interpretation, which support the classification under the most specific description. The Authority agreed, classifying Plastic Rivets under Tariff item 3926 90 99. 3. Classification of Quick Adapter: The applicant argued that Quick Adapters should be classified under Chapter 39, Tariff item 3917 40 00, as they connect pipes and tubes and are used in various industries. The Authority noted that in the pre-GST regime, these were classified under Chapter 87, Tariff item 8708 99 00. The applicant cited Section Note 2(b) of Chapter XVII and Rule 3(a) of the General Rules for Interpretation. The Authority agreed, classifying Quick Adapters under Tariff item 3917 40 00. 4. Classification of Plastic Pipe Clips: The applicant contended that Plastic Pipe Clips should be classified under Chapter 39, Tariff item 3926 90 99, as they are used to harness wires or cables in the engine area of a motor vehicle. The Authority noted that in the pre-GST regime, these were classified under Chapter 87, Tariff item 8708 99 00. The applicant cited Section Note 2(b) of Chapter XVII and Rule 3(a) of the General Rules for Interpretation. The Authority agreed, classifying Plastic Pipe Clips under Tariff item 3926 90 99. 5. Classification of Brackets and Channels: The applicant argued that Brackets and Channels should be classified under Chapter 87, Tariff item 8708 99 00, as they are used to bind and arrange wires/cables in motor vehicles. The Authority noted that these products are designed for use in motor vehicles and satisfy the "Principal use" test set out in Section Note 3 of Section XVII. The Authority agreed, classifying Brackets and Channels under Tariff item 8708 99 00. 6. Classification of Non-Return Valve: The applicant contended that Non-Return Valves should be classified under Chapter 84, Tariff item 8481 30 00, as they restrict fluid flow in one direction. The Authority noted that in the pre-GST regime, these were classified under Chapter 87, Tariff item 8708 99 00. The applicant cited Section Note 2(e) of Chapter XVII and Rule 3(a) of the General Rules for Interpretation. The Authority agreed, classifying Non-Return Valves under Tariff item 8481 30 00. 7. Classification of Metal U Clips: The applicant argued that Metal U Clips should be classified under Chapter 73, Tariff item 7326 90 99, as they are used in various industries. The Authority noted that in the pre-GST regime, these were classified under Chapter 87, Tariff item 8708 99 00. The applicant cited Section Note 3 of Chapter XVII and Rule 3(a) of the General Rules for Interpretation. The Authority agreed, classifying Metal U Clips under Tariff item 7326 90 99. 8. Classification of Fasteners and Spoilers: The applicant contended that Fasteners and Spoilers should be classified under Chapter 87, Tariff item 8708 29 00, as they are parts and accessories of motor vehicles. The Authority noted that these products are designed for use in motor vehicles and satisfy the "Principal use" test set out in Section Note 3 of Section XVII. The Authority agreed, classifying Fasteners and Spoilers under Tariff item 8708 29 00. 9. Classification of Bracket: The applicant argued that Brackets should be classified under Chapter 87, Tariff item 8708 99 00, as they support wiring harness and pipes in motor vehicles. The Authority noted that these products are designed for use in motor vehicles and satisfy the "Principal use" test set out in Section Note 3 of Section XVII. The Authority agreed, classifying Brackets under Tariff item 8708 99 00. 10. Classification of Stainless Steel Washer: The applicant contended that Stainless Steel Washers should be classified under Chapter 73, Tariff item 7318 21 00, as they are used in various industries. The Authority noted that in the pre-GST regime, these were classified under Chapter 87, Tariff item 8708 99 00. The applicant cited Section Note 2(b) of Chapter XVII and Rule 3(a) of the General Rules for Interpretation. The Authority agreed, classifying Stainless Steel Washers under Tariff item 7318 21 00. Conclusion: The Authority rejected the application as being not maintainable, stating that the classification of imported goods is not within the purview of the Authority for Advance Ruling under the GST Act. The Authority emphasized that the Customs Authority is the appropriate authority to classify imported goods.
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