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TMI Blog2018 (11) TMI 1267X X X X Extracts X X X X X X X X Extracts X X X X ..... the items are intended for internal combustion engines of automobiles, motorcycles etc. It is evident that Heading 7315 includes articulated link chains such as roller chains or silent chains which are used as transmission chains for engines of automobiles or machinery. Though these form parts of engines under Chapter 8407 or 8408, they are covered under definition of ‘parts of general use’ which are specifically excluded from chapter heading 8409 - Therefore, articulated link chains ie. ‘Roller chains’ supplied by the applicant are classifiable under CTH 73151100 and ‘Inverted tooth chains or silent chains’ under CTH 73151290 of the Customs Tariff made applicable to GST. Ruling:- “Roller chains” supplied by the applicant are classifiable under CTH 73151100 and ‘Inverted tooth chains or silent chains’ under CTH 73151290 of the First Schedule to the Customs Tariff Act, 1975 as applicable to GST as per Explanation (iii) to Notification 1/2017 -Central Tax (Rate) dt 28.06.2017 and G.O. Ms No. 59, Commercial Taxes and Registration (B1) dt 29th June 2017. - ORDER No. 17/AAR/2018 - - - Dated:- 29-10-2018 - MS. MANASA GANGOTRI KATA, IRS AND SHRI. S. VIJAYAKUMAR, M.SC., MEMBER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SN Description as per Central Excise tariff schedule 8409 Parts suitable for use solely or principally with the engines of heading 8407 or 8408 8409 9191 of petrol engines for motor vehicles 8409 9141 ..of diesel engines for motor vehicles 2.2. Even under the GST legislation, the Applicant continued to classify their products under HSN 8409. The relevant entry from the GST rate schedule is tabulated below: HSN Description as per Central Excise tariff schedule 8409 Parts suitable for use solely or principally with the engines of heading 8407 or 8408 Many of the customers of Applicant had insisted that they should categorize the automotive chains under HSN 7315 and charge GST @ 18% instead of 28%. The relevant entry from the GST rate schedule is tabulated below: HSN Description as per Central Excise tariff schedule 7315 Chain and parts thereof of iron or steel fall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... voices/ contract for such purchase by client company, copy of documents relating to exports of Chains by their group companies under HSN 7315. The Applicant further furnished a Technical write-up of the chains with samples, invoices, sample contracts, import documents. 3.2 The submissions of the Applicant were examined. In the case at hand from the technical write-up furnished by the Applicant, it is seen that the product in question are timing chains or Transmission Chains which are used for chain drive mechanism i.e., way of transmitting mechanical power from one shaft to another and are made of steel. They are used for transmitting power between the driver and driving shafts in industrial and automotive applications. Roller chains or Roller bush chains are the most commonly used for transmission of mechanical power on many kinds of domestic, industrial and agricultural machinery including conveyors, cars, motorcycles etc. It consists of a series of short cylindrical rollers held together by side links and driven by a toothed wheel called sprocket. Silent chains or Inverted toothed chain are an articulated tension used for power transmission in automotive vehicle or industri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Other chain : 7315.19 -- Parts 7315.20 - Skid chain - Other chain : 7315.81 -- Stud-link 7315.82 -- Other, welded link 7315.89 -- Other 7315.90 - Other parts This heading covers chains of cast iron (usually malleable cast iron), wrought iron or steel, regardless of their dimensions, process of manufacture or, in general, their intended use. It includes of their articulated link chain (e.g. roller chain, inverted tooth ( silent ) chain and Galle chain), non-articulated link chain including stud-link chain (whether forged, cast, welded, stamped from sheet or strip metal or made from wire, etc), and ball chain. The heading includes: (1) Transmission chains for cycles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uel nozzels), However, the heading excludes; (a) Injection pumps (Heading 84.13) (b) Engine crank shafts and cam shafts (heading 84.83) and gear-boxes (heading 84.83). (c) Electrical ignition or starting equipment (including, sparking plugs and glow plugs) (heading 85.11) HSN Explanatory Note (1) (g) of Section XVI which covers chapter heading 84 states as under: 1. This Section does not cover: (a) (g) Parts of general use, as defined in Note 2 to Section XV, of base metal (Section XV), or similar goods of plastics (Chapter 39) Note 2 to Section XV defines parts of general use as under: 2. Throughout this Nomenclature, the expression parts of general use means: (a) Articles of headings 7307, 7312, 7315, 7317 or 7318 and similar articles of other base metal; Further, the General Notes to Section XV also states: (C) PARTS OF ARTICLES In general, identifiable parts of articles are classified as such parts in their appropriate headings in the Nomenclature. However, parts of general use (as defined in Note 2 to this Section) presented separately are not considered as parts of articles, but are classif ..... 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