2018 (9) TMI 689 - AAR - GST

Classification of goods - Heat Shrinkable Cable Jointing Kits - whether the product of the applicant in question i.e. Heat Shrinkable Cable Jointing Kits is to be classified under HS Code 8546 or 8547? Held that - The Chapter Head description under existing law i.e. Central Excise, GST and Customs are one and the same. Further, it is worth mentioning here that, at all the material times the said goods were classified for the purposes of basic and other Customs Duty by the Customs deptt. under heading 85.47 of Customs Tariff Act - The assessee, during the course of personal hearing, have accepted that they are running the same business for the last many years and were classifying the goods under Chapter Heading 8547 for their product Heat Shrinkable Wrap Around Sleeve in the existing law. This fact has been verified from the ER-1 Return filed by the applicant for the month of April, 2017. The apex court in the case of M/s XL Telecom P. Ltd. V. Union of India, 1993 (3) TMI 123 - HIGH COURT OF JUDICATURE AT BOMBAY , wherein no scope of classification dispute is left, that the Cable jointing Kit is classifiable under Head 8547 of the GST Tariff. Thus, The fact remains that said material i.e. Cable Jointing Kits assembled from various components are classifiable under Chapter Heading No. 8547.00. Ruling - Heat Shrinkable Cable Jointing Kits is to be classified under HS Code 8547.

Summary

Issues:
Correct classification of goods under HS Code 8546 or 8547.

Analysis:
1. Facts and Application: M/s Western Cablex Engineering Pvt Ltd sought clarification for the correct classification of their goods, Heat Shrinkable Cable Jointing Kits, under HS Code 8546 or 8547. The application was forwarded to the Assistant Commissioner for examination.

2. Defence Submission and Hearing: The assessee appeared for a personal hearing and argued for classification under HS Code 8546. They contended that their product should be classified under 8546 due to the nature of their finished goods being "Heat Shrinkable." The application was admitted under Section 98 of the Central Goods and Service Tax Act, 2017.

3. Discussion and Findings: The authority had to determine whether the product should be classified under HS Code 8546 or 8547. The classification under GST, Central Excise, and Customs law for Electrical Insulators of any material (HS Code 8546) remained consistent. No significant change in classification was observed post-GST implementation.

4. Classification under HS Code 8547: The authority discussed the classification under HS Code 8547 for Insulating fittings for electrical machines. The applicant had been classifying their goods under 8547 for many years. Reference was made to a previous judgment confirming the classification of Cable Jointing Kits under 8547.

5. Ruling Pronouncement: The authority pronounced an Advance Ruling against the applicant, classifying Heat Shrinkable Cable Jointing Kits under HS Code 8547. The decision was applicable for all types of taxes - CGST, IGST, and UTGST.

This detailed analysis covers the application process, defense submission, discussion on classification under different HS codes, and the final ruling pronouncement, ensuring a comprehensive understanding of the judgment.