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2019 (7) TMI 1108 - AAR - GSTClassification of goods - Instruments Cluster - whether Fall Under 8708 or 9026/9029? - applicable rate of GST - HELD THAT - The applicant supply clusters in which several instruments are clustered. Thus, there is no supply of individual instrument - Electronic cluster is the distinct product having distinct name, use from its component. It is manufactured by using various component such as Speedometer, Fuel Gauge, Pointer, Illumination And Warning Indicators-lamps, Temperature Gauge, clock (12hr 24hr), Battery Voltage Level Indicator, Service or Maintenance Indication, Mean Maximum speed, Warning Indicators-LEDs; etc. Cluster is purely a different manufactured product resulted by way of assembling and connecting various component on single electronic platform and which are solely used in vehicles. The product sold by applicant is parts of motor vehicle. The same will be covered under excise chapter heading number 8708 and is liable to tax @ 28%.
Issues Involved:
1. Classification of Instrument Clusters: Whether they fall under HSN 8708 or 9026/9029. Detailed Analysis: 1. Classification of Instrument Clusters: Whether they fall under HSN 8708 or 9026/9029. The applicant, M/s. Imperial Motor Stores, sought an advance ruling to determine the appropriate classification and GST rate for Instrument Clusters. They referenced a Supreme Court judgment which classified similar clusters under HSN 8708 with a GST rate of 28%. Competitors, however, classified these clusters under HSN 9026/9029, attracting an 18% GST rate. Applicant’s Contention: - M/s. Imperial Motor Stores are distributors of Veethree Range of Automotive Dashboard Instruments and Clusters. - Individual instruments are classified under Chapter 90 with an 18% GST rate, while clusters are classified under HSN 8708 with a 28% GST rate, as per a Supreme Court judgment (2015 (321) E.L.T.A 130 (SC)). - Competitors are classifying clusters under HSN 9026/9029 and charging 18% GST. Concerned Officer’s Contention: - The officer emphasized that the applicant supplies clusters, not individual instruments. - Clusters include components like Speedometer, Fuel Gauge, Temp Gauge, etc., assembled on a single electronic platform, used solely in vehicles. - The officer cited the Supreme Court’s decision in Commissioner v/s Premier Instruments and Controls Ltd., classifying clusters under HSN 8708 as parts of motor vehicles with a 28% GST rate. Hearing and Observations: - The applicant and jurisdictional officer presented their submissions during the hearings. - The Authority analyzed the facts, submissions, and relevant legal precedents. - It was noted that clusters are distinct products, assembled from various components, and used solely in vehicles. - The Supreme Court’s judgment in the Premier Instruments case was upheld, supporting the classification of clusters under HSN 8708. Conclusion: - The Authority concluded that Instrument Clusters are distinct products, not individual instruments. - They are classified under HSN 8708 as parts of motor vehicles. - The applicable GST rate is 28% (CGST-14% & SGST-14%). Order: - The classification of Instrument Clusters falls under HSN 8708, as parts of motor vehicles, with a GST rate of 28%. Summary: The Advance Ruling Authority in Maharashtra ruled that Instrument Clusters, which are combinations of various automotive instruments, fall under HSN 8708 as parts of motor vehicles. This classification attracts a GST rate of 28%, in line with the Supreme Court judgment in the Premier Instruments case. The ruling clarified that clusters are distinct products, not individual instruments, and are used solely in vehicles.
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