2021 (9) TMI 570 - AAR - GST

Classification of goods - rate of tax - HSN Code - Sprocket, which is a part in chains- conveyor or roller chains- for industrial use - classified at HSN 73151100 or otherwise? - HELD THAT - The HSN 848390 covers tooth wheel, Chain Sprocket and other transmission element presented separately; parts. This description is sufficient to classify the subject goods at HSN 848390 and Rule 1 of General Rules of Interpertation of Harmonised System (GIR), i.e, Classification to be based on the Heading, being satisfied, there is no further need to apply GIR sequentially. There are no merit to examine other HSN in this regard. Reliance is placed in an order of CESTAT in COLLECTOR OF CENTRAL EXCISE, PUNE VERSUS NU-TECH ENGG. CO 2000 (6) TMI 342 - CEGAT, NEW DELHI wherein Sprockets were classified under Heading 84.83 of Central Excise Tariff Act (CETH), 1985. We note that CETH and Customs Tariff Heading (CTH) in 8483 have the same description. The statutory entry under sub heading 848390 of the CETA, 1985 corresponds to entry under sub-heading 8483.90 of the HSN. The Custom Tariff Act is based on HSN. Thus, Sprocket is classified under HSN 848390 tariff subheading.

Summary

Issues: Classification of Sprocket under HSN and Tariff

Analysis:
A. BRIEF FACTS
M/s. Tripcon Engineering Pvt. Ltd. sought an Advance Ruling on the classification of Sprocket, stating it is a part of Conveyor Chain & Roller Chain used in various industries. The applicant claimed that Conveyor Chain and Roller Chain are classified under HSN 73151100.

B. Question on which Advance Ruling sought
The main query was regarding the HSN and tariff classification of Sprocket.

C. Personal Hearing
A virtual personal hearing was conducted with the applicant's representative reiterating the application contents.

D. FINDINGS
1. The judgment clarified that the CGST Act and GGST Act have similar provisions unless specified otherwise.
2. The submissions were carefully reviewed, noting that the subject sprocket is used in industrial chains.
3. The specific Tariff entry for 'Chain Sprocket' at HSN 8483 was highlighted, covering transmission elements presented separately.
4. The description under HSN 848390 was deemed sufficient for classification, satisfying Rule 1 of General Rules of Interpretation of Harmonized System (GIR). No further analysis of other HSN was necessary. The relevance of Rule 3a and Rule 3c of GIR was also discussed.
5. The judgment aligned with a previous CESTAT order classifying Sprockets under Heading 84.83 of the Central Excise Tariff Act. The consistency between CETH and Customs Tariff Heading in 8483 was emphasized.
6. The ruling concluded that Sprocket is classified under HSN 848390 tariff subheading, providing a clear resolution to the classification issue.