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2024 (8) TMI 642 - AAR - GSTClassification of goods - rope handle, vent plug and split top / bottom support, made from plastic - to be classified under headings 3901 to 3914 or under heading 3926 or 8507 - rate of GST - HELD THAT - The said articles Rope handle , Vent plug and Split top /bottom support are not specifically described in either of the headings or the subheadings of the two competing headings i.e. heading 3926 and heading 8507 . The said articles are manufactured by moulding using injection moulding machine and the raw materials used is Reprocessed Polypropylene / Low linear density polyethylene and hence the applicant has contended that the right classification of the said articles is under heading 3926 . Though the impugned articles are all made of plastic (polypropylene / High density Polyethylene) the said articles are all used as parts of Lead acid battery. We find that the applicant themselves have submitted that the said articles 'are all used as parts are accessories for lead acid battery / electric accumulator'. The applicant has also submitted that the uses of each of the articles i.e. the said articles are used for lifting of lead acid battery, transportation purposes and providing support to top and bottom of the battery plates. Further, the applicant also submitted that the vent plug to be maim factored by them can not only be used for transportation but also few customers would use it as a regular vent plug. Hence there is no doubt regarding the purpose of manufacturing the impugned articles i.e. the said articles are manufactured with the purpose of transporting/ lifting the lead acid battery or providing support to the lead acid battery. Though the impugned articles are all made of plastic, by virtue of Chapter Note 2(s) to Chapter 39 the impugned articles are not covered under Chapter 39. Further the explanatory notes given under General content of Section XVI mentions that the goods of the said section can be of any material including plastics. Also Rule 3(b) of GRIs is also not applicable in the instant case as the same deals with mixed goods, composite goods and goods put up in sets for retail sale which cannot be classified by reference to 3(a). Rate of tax - HELD THAT - As the impugned goods are to be classified under the heading 8507 and more particularly under sub heading 8507 90 , the applicable tax rate is 14% CGST as per SL No, 139 of Schedule IV of Notification No. 01/2017-C.T.(rate) dated 28.06.2017 as amended and 14% SGST as per SI No. 139 of Schedule IV of G.O. (Ms No. 62 dated 29.06.2017 No. II(2)/CTR/532(d-4)/2017 as amended - It is found that the applicant has contended that Sl.No. 139 does not even refer to parts of the electric accumulators and that it is a well settled principle of law that no terms or words can be read into the provisions of law and similarly, SL No. 139 of Notification No. 1/2017-CT (R) cannot be read into to include parts and accessories of electric accumulators In this regard all the goods falling under Heading 8507 attracted 14% CGST initially as per Notification No. 1/2017-CT (R) dated 28.06.2017 and later the GST on Lithium -ion batteries was reduced to CGST 9% vide subsequent Notification. The impugned goods which are Parts of Electric accumulators are classifiable under subheading 8507 90 which is covered under heading 8507 and attracts CGST rate and SGST rate.
Issues Involved:
1. Classification of products (rope handle, vent plug, split top/bottom support) under HS code: "3926" or "8507". 2. Applicable rate of tax for the said products under GST enactments. Detailed Analysis: 1. Classification of Products: - Applicant's Argument: The applicant contends that the products should be classified under heading "3926" (Other articles of plastics) as they are made from plastic and fall under headings 3901 to 3914. They argue that heading "3926" is more specific and deals with the essential character of the products, i.e., plastic. They believe that heading "8507" (Electric accumulators) is a more general description and does not specifically mention plastic parts. - Authority's Examination: The Authority reviewed the General Rules of Interpretation (GRIs) of the Customs Tariff Act, 1975, and relevant Section and Chapter Notes. They noted that Chapter Note 2(s) to Chapter 39 excludes articles of Section XVI (machines and mechanical or electrical appliances) from Chapter 39. Since the products in question are used as parts of electric accumulators, they fall under Section XVI and are thus excluded from Chapter 39. - Conclusion: The Authority concluded that the products (rope handle, vent plug, split top/bottom support) are parts of electric accumulators and should be classified under heading "8507" (Electric accumulators), specifically under sub-heading "85079090" (Other parts). 2. Applicable Rate of Tax: - Applicant's Argument: The applicant argued that the rate of tax for parts of electric accumulators is not explicitly mentioned in the GST notifications and that parts should not be included under the higher tax rate applicable to electric accumulators. - Authority's Examination: The Authority referred to Notification No. 01/2017-C.T. (Rate) dated 28.06.2017, as amended, which specifies a GST rate of 28% for electric accumulators under heading "8507". They noted that the sub-heading "85079090" includes all parts of electric accumulators, and thus the products in question fall under this category. - Conclusion: The applicable rate of tax for the products (rope handle, vent plug, split top/bottom support) is 14% CGST and 14% SGST, totaling 28%, as per SL No. 139 of Schedule IV of Notification No. 01/2017-C.T. (Rate) dated 28.06.2017, as amended. Ruling: 1. The products (rope handle, vent plug, split top/bottom support) made from plastic merit classification under heading "8507". 2. The rate of tax for the said products under GST enactments is 14% CGST and 14% SGST, totaling 28%.
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