2018 (9) TMI 1036 - AAR - GST

Classification of goods - Parts of Fuel Injection Pumps - benefit of exemption notification. Whether the Parts of Fuel Injection Pumps are classifiable under Tariff Heading 8413 91 90? Whether the applicable entry in Notification )1/2017 Integrated Tax (Rate), is 453 of Schedule III, for parts of fuel injection pumps, attracting a levy of 18%? Held that - The goods dealt by the applicant are parts of the fuel injection pumps for diesel engines . The parts of pumps for liquids, whether or not fitted with a measuring device are covered under the heading 8413 91 - Since parts of fuel injection pumps for diesel engines are parts of pumps, but are neither covered under HS Codes 8413 91 10 or 8413 91 20 or 8413 91 30 or 8413 91 40, they have to be covered under the residual entry 8413 91 90. Hence Parts of Fuel injection pumps for diesel engines are covered under HS Code 8413 91 90 - Since the goods supplied by the applicant is neither a hand pump or a part of it, the same cannot be covered under entry 231 of Schedule I of the Notification No.1/ 2017 Integrated tax (Rate) dated 28.06.2017 attracting 5% IGST. Further, since the goods supplied is not Power driven pumps primarily designed for handling water, the same cannot be covered under entry 192 of Schedule II of the Notification No.1/ 2017 Integrated tax (Rate) dated 28.06.2017 attracting 12% IGST. Since the goods Parts of fuel injection pumps are not covered under any of the entries in Schedule I or Schedule II or Schedule IV or Schedule V or Schedule VI, and also under any other entries of Schedule III, the same needs to be covered under this entry 453 of Schedule III of Notification No.1/ 2017 Integrated tax (Rate) dated 28.06.2017 and all goods covered under Schedule III of the aforesaid Notification attracts IGST at the rate of 18%. Ruling - The Parts of Fuel Injection Pumps for diesel engines are classifiable under Tariff Heading 8413 91 90 as per the Customs Tariff Act, 1975. The Parts of Fuel Injection Pumps for diesel engines are covered under the entry no. 453 of Schedule III of Notification No.1/ 2017 Integrated tax (Rate) dated 28.06.2017 and hence liable to tax at 18% under the Integrated Goods and Services Tax Act, 2017.

Summary

Issues involved:
1. Classification of 'Parts of Fuel Injection Pumps' under Tariff Heading 8413 91 90.
2. Applicability of the entry in Notification 1/2017-Integrated Tax (Rate), specifically entry 453 of Schedule III, for parts of fuel injection pumps attracting an 18% levy.

Detailed Analysis:
Issue 1: Classification of 'Parts of Fuel Injection Pumps' under Tariff Heading 8413 91 90
The applicant, a private limited company manufacturing and supplying high precision components, sought an advance ruling on the classification of 'parts of fuel injection pumps.' The applicant argued that these parts should be classified under Tariff Heading 8413 91 90 as per the Customs Tariff Act, 1975. They provided detailed submissions citing relevant provisions and explanations from the GST Act. The Authority examined the goods in question and confirmed that 'parts of fuel injection pumps' fall under the residual entry 8413 91 90 since they are neither covered under specific sub-headings nor under other entries in the relevant Schedules.

Issue 2: Applicability of entry 453 of Schedule III for parts of fuel injection pumps
The applicant contended that since the goods in question were not specified in Schedules I, II, IV, V, or VI, they should be covered under entry 453 of Schedule III, attracting an 18% GST levy. The Authority reviewed the entries in various Schedules of the Notification and concluded that the 'parts of fuel injection pumps' did not find specific mention elsewhere. Therefore, the Authority ruled that these parts are covered under entry 453 of Schedule III, making them liable for an 18% tax under the Integrated Goods and Services Tax Act, 2017.

In conclusion, the Authority for Advance Rulings in Karnataka ruled that the 'Parts of Fuel Injection Pumps for diesel engines' are classified under Tariff Heading 8413 91 90 and are covered under entry 453 of Schedule III of Notification 1/2017-Integrated Tax (Rate), attracting an 18% tax under the Integrated Goods and Services Tax Act, 2017.