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2024 (2) TMI 1355 - AAR - GSTClassification and rate of GST - parts of fuel injection pumps supplied by the Applicant - Assy Head Rotor - X Roller Shoe Kit - TP Blade/ Spring Kit (Set of 4 Nos) - TP Liner - Kit Excess Piston - Hyd head Assy for Tata Ace - to be classified under Tariff Heading 84139190? - SI. 117 of Schedule II of IGST Goods Rate Notification on supply of said parts. Whether the said 6 parts of fuel injection pumps fall under the CTH 84139190? - HELD THAT - These items cannot be placed under CTH 84139110(Parts of pumps - of reciprocating pumps) or CTH 84 139130(Parts of pumps - of other rotary pumps) as they are specific entries and the same could be done only if the Fuel Injection pumps were classified under CTH 841350 (other reciprocating positive displacement pumps) or CTH 841360(other rotary positive displacement pumps). Whereas, it is not the case so and the Fuel Injection pumps for diesel engines are classified correctly under CTH 84133010 and thereby, the said 6 parts of Fuel Injection pumps are correctly classifiable under the residual entry for Tarts of pumps - others - CTH 84139190. Rate of GST to be levied on the said 6 parts of fuel injection pumps - HELD THAT - Fuel injection pumps for diesel engines are classified under the CTH 84133010. These are covered under Schedule IV of the rate notification No. 01/2017-Integrated Tax (Rate) dated 28.06.2017 attracting a tax of 28% - in the description of goods, the entry covers only the pumps 8413 11 and 8413 30 and not their parts. It is found that this necessitates to place the parts of pumps under correct entry of the rate notification No. 01/2017-Integrated Tax (Rate) dated 28.06.2017. The 'Parts of pumps- others' which remain classified under Heading 8413 9190 will fall under the residuary rate entry i.e., SI. No. 453 of Schedule III (extracted above) which attracts 18% IGST, for the reason that they are not classifiable elsewhere.
Issues Involved:
1. Classification of parts of fuel injection pumps. 2. Applicable GST rate for the parts of fuel injection pumps. Issue 1: Classification of parts of fuel injection pumps The Applicant, a GST registrant engaged in the manufacture and supply of fuel injection pumps and parts, sought advance ruling on the classification of specific parts of fuel injection pumps. The parts in question include Assy Head & Rotor, X Roller & Shoe Kit, TP Blade/Spring Kit, TP Liner, Kit Excess Piston, and Hyd head Assy for Tata Ace. The Applicant currently classifies these parts under Tariff Heading 84139190 and discharges GST at the rate of 28%. Upon examination, the Authority referred to the Customs Tariff Act, 1975, and the Harmonised Commodity Description and Coding System (HSN). The classification principles under the General Rules for Interpretation (GRI) of the Customs Tariff were applied. The relevant headings considered were CTH 8409 (parts suitable for use solely or principally with engines of heading 8407 or 8408) and CTH 8413 (pumps for liquids, whether or not fitted with a measuring device; liquid elevators). The Authority concluded that fuel injection pumps are excluded from CTH 8409 and correctly classified under CTH 8413, specifically 84133010 for injection pumps for diesel engines. Consequently, the parts of fuel injection pumps are classified under CTH 84139190 (parts of pumps - others) since they do not fit into more specific sub-headings like 84139110 (parts of reciprocating pumps) or 84139130 (parts of other rotary pumps). Issue 2: Applicable GST rate for the parts of fuel injection pumps The Authority examined the applicable GST rate for the classified parts. The fuel injection pumps for diesel engines are covered under Schedule IV of the IGST Goods Rate Notification No. 01/2017, attracting a tax rate of 28%. However, this entry does not include parts of pumps. After verifying the Schedules of the Notification, the Authority found that the parts of pumps classified under Heading 84139190 are not covered by any specific entries in Schedule I, II, IV, V, or VI. Therefore, they fall under the residuary entry in Schedule III, which attracts 18% IGST. Ruling: 1. The parts of fuel injection pumps, namely Assy Head & Rotor, X Roller & Shoe Kit, Kit Excess Piston, Hyd head Assy for Tata Ace, TP Blade/Spring Kit, and TP Liner, are classifiable under CTH 84139190 and taxable under SI. No. 453 of Schedule III of Notification No. 01/2017-Integrated Tax (Rate) dated 28.06.2017, attracting 18% IGST.
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