2019 (8) TMI 1280 - AAR - GST

Classification of goods - Rate of tax - Oil Lubrication Systems - HSN Code - HELD THAT - The application is rejected as the relevant technical details of the supply for which classification and rate of CGST/SGST is being sought, have not been produced.

Summary

Issues:
1. Determination of the rate of tax on "Oil Lubrication Systems."
2. Identification of the appropriate HSN code.

Analysis:
1. Rate of Tax on "Oil Lubrication Systems":
The Applicant, a registered entity under GST, sought an Advance Ruling on the tax rate applicable to Oil Lubrication Systems. They highlighted the critical role of these systems in lubricating, cooling, and maintaining machine elements. The systems include various components like tanks, pumps, filters, heat exchangers, valves, and instrumentation. The Applicant argued that, except for tanks and filters, all other components are bought outs attracting a GST of up to 18%. Despite the Applicant's submission of relevant documents and explanations, they failed to provide essential technical details during the hearing process. Consequently, the Authority could not determine the appropriate tax rate due to the lack of necessary information.

2. HSN Code Identification:
The Applicant also sought clarification on the appropriate HSN code for Circulating Oil Lubrication Systems. The Commissioner of Central GST & Central Excise, North, opined that these systems fall under Chapter 8413 and attract a 28% GST rate. However, the Authority noted that without the detailed technical write-up, usage descriptions, and component drawings promised by the Applicant, a precise classification and HSN code determination were not feasible. Despite multiple opportunities provided to the Applicant for submission of the required documents, they failed to comply, leading to the rejection of the application.

In conclusion, the Advance Ruling sought by the Applicant regarding the tax rate and HSN code for Oil Lubrication Systems was rejected due to the non-submission of crucial technical details necessary for classification and rate determination. The Authority emphasized the importance of providing comprehensive information to enable an accurate ruling on such matters.