9911796707
TMI Blog2023 (12) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... s of Section 104 of the Act, where the Authority finds that advance ruling pronounced by it under sub-section (4) of Section 98 or under sub-section (1) of section 101 has been obtained by the applicant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab initio and thereupon all the provisions of this Act or the rules made thereunder shall apply to the applicant as if such ruling had never been made. 5. At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. M/s. Lion Seat Cushions Private Limited, D. No. 130/1, Saradha College Road, Salem (hereinafter called as the 'Applicant') is registered under the GST Acts with GSTIN: 33AACCL1446J1ZP. 2. The Applicant is a manufacturer of Two Wheeler scat covers for Bikes and Scooters. The Applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otherwise. * When the entry found in HSN code 9401 2000 categorically specifics the seats of kind of Motors cycles. Now the other question arises whether the seat cover falls under the category or not. Definitely the seat and seat covers are not one and the same and also it has to be decided whether seat cover is a part or accessory. The seat covers are meant for the protection of the scats and the functional value of seat cover is the comfort and convenience it extends to the rider and pillion rider. Thus the scat cover is nothing but an accessory that enhances the functional value and that the scat covers falls under HSN 8714 99 90 and the seat cover which being an accessory to Motor cycle is liable to GST at 28% (CGST at 14% and SGST at 14%) under the chapter/heading/sub-heading/Tariff 8711 and 8714. * No proceedings are pending for adjudication in the applicant's case relating to the question raised in the application for advance ruling. 4.2. The concerned Central Tax Officer has submitted comments as under: * No proceedings are pending for adjudication in the applicant's case relating to the question raised in the application for advance ruling. * The Applicant has c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly examined the statement of facts and submissions made by the Applicant during personal hearing and the comments of the Central and State Jurisdictional Authorities. 6.2 As per the submissions made, we find that the Applicant is manufacturing Two Wheeler seat covers for Bikes and Scooters using Foam and Rexine and supplying it to automobile dealers @ 18% GST (HSN: 9401 2000), at present. The Applicant also stated that previously they were paying tax @ 28 % for the same commodity under HSN 8708, whereas the other manufacturers in the same trade were paying tax @ 18% under the HSN 9401 2000. Therefore, the Applicant is before us seeking ruling on the correct rate of tax for the commodity i.e. Two Wheeler seat covers. 6.3. From the submissions made by the Applicant, we observe that three different headings arc being adopted by taxpayers or their competitors, for the supply of Two Wheeler scat covers. The Applicant was adopting HSN 8708 99 00 collecting GST @ 28%, and their competitors were adopting HSN 94012000 collecting GST @18% or 87149990 collecting GST @ 5%, for the same product i.e. Bike and Scooter seat covers. The correctness of the adoption of the said headings and the GST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he CTH 87149990 and the GST tax rate to be adopted for the said CTH is elaborated in the ensuing paragraphs. 6.4. From the above discussion, it is clear that the commodity manufactured by the Applicant i.e., Two Wheeler seat cover does not merit classification either under CTH 8708 or 9401 and if the Seat covers are cleared under CTH 87149990 the GST applicable is not 5% as collected by some of the taxpayers. 6.5. We proceed to examine the correct classification of the product, i.e. Seat covers for two wheelers, manufactured by the Applicant and the correct rate of tax to be adopted. We find that the Applicant has submitted copies of sample invoices as well as photographs of their product viz seat covers. On perusal of the photographs, it is seen that the Applicant is making seat covers of different variants and types, designed to fit the seat of Hero Honda Motorcycles. The seat covers are to be mounted on the existing seat in the two wheelers. 6.6 Further, on verification of the sample invoices submitted by the Applicant, it is revealed that the Applicant has cleared such seat covers to Automobile dealers in the month of March 2022 adopting GST@ 28% GST (14% CGST + 14% SGST) an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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