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TMI Blog2018 (6) TMI 515X X X X Extracts X X X X X X X X Extracts X X X X ..... gears or gear boxes, of with a flexible shaft for operating hand tools - On the basis of the Explanatory Notes of HSN under Tariff Heading 8483 and 8501, it is evident that the product ‘Geared Motor’, which is an assembly product of the ‘Electric Motor’ and ‘Gear Box’, will appropriately fall under Chapter Heading 8501 of the Customs Tariff Act, 1975. Ruling:- The product ‘Geared Motor’ is classifiable under Chapter Heading 8501 of the Customs Tariff Act, 1975 and Goods and Services Tax rate applicable to Chapter Heading 8501 is applicable to the said product. X X X X Extracts X X X X X X X X Extracts X X X X ..... e applicant submitted that they are engaged in supplying 'Geared Motor', which is an assembly product of the 'Electric Motor' and 'Gear Box'. Electric Motor is covered under HSN code 8501 attracting GST at 18%, while Gear Box falls under HSN code 8483 attracting GST at 28%, however, HSN code and tax rate for product 'Geared Motor' is not provided under law. 3. The applicant has raised following question for advance ruling in their application :- What is the HSN Code and GST Tax Rate of a product 'Geared Motor'? 4.1 The Commissioner of Central Excise & GST, Vadodara - I Commissionerate informed that it is a fact that the HSN code and GST Tax Rate of product 'Geared Motor' is not clearly mentioned in the GST Tariff, therefore, for determi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the Gear Box for changing its speed and torque. In addition, the very first paragraph of the catalogue of the Geared Motor of applicant company mentions as follows :- "Geared Motors and Gearboxes are the heart of any engineering product. It is not just the torque and speed but the reliability of the Geared Motor that defined the performance of your product or equipment." Gear Box is a device which is used to transmit mechanical power and speed from one shaft to other shaft. Gear Box helps in changing the direction as well as output RPM with the help of various combination in gearing. Gear box is mechanical power device. HSN code of Gear box is 8483 and GST rate of Gear box is 28%. Electric Motor is a device which converts electrical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as Auto Parts and Gearbox used in Tractor were known as Tractor parts and even though these three were Gearbox, as per different designs and use in different sectors, the tax rates were applicable accordingly. 5.3 It is also informed that the applicant has given information about 'Geared Motor' in Annexure A - Brief about company and Annexure B - Statement of interpretation by applicant, but it has not been clarified the sectors in which the said product is used. 5.4 It is also informed that the 'Geared Motor' was considered as Machinery under Schedule - 2(58)A vide decision dated 25.03.2011 in applicant's own case and decision dated 11.05.2011 in case of M/s. Jasood Extrusion Pvt. Ltd. rendered under Section 80 of erstwhile Gujarat VAT A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rated Goods and Services Tax Act, 2017. 7.2 It is observed that the Explanation (iii) and (iv) of the Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 provides as follows :- "Explanation. - For the purposes of this notification, - (i) …… (ii) …… (iii) "Tariff item", "sub-heading" "heading" and "Chapter" shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (iv) The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduct 'Geared Motor' either under Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 or under the Customs Tariff Act, 1975. 8.2 The Explanatory Notes for 'Gear Boxes and other Speed Changers, including Torque Converters' under Tariff Heading 8483 of the Harmonised System of Nomenclature provides as follows :- "(E) GEAR BOXES AND OTHER SPEED CHANGERS, INCLUDING TORQUE CONVERTERS These provide a range of speeds which can be varied, either by hand or automatically, according to the requirements of the machine. They include, inter alia : (1) Gear-boxes consisting of assemblies of gears which can be selected in alternative arrangements; the speed of transmission can thus be varied according to the arrangement of gears set. ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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