Heat Shrinkable Cable Jointing Kits classified under HS Code 8547 not 8546 per AAR ruling

AAR ruled that Heat Shrinkable Cable Jointing Kits are classifiable under HS Code 8547, not 8546. The authority noted that the applicant had consistently classified similar products under Chapter Heading 8547 in previous returns and accepted this classification during personal hearing. The Customs department had also classified these goods under heading 85.47 for duty purposes. The ruling was supported by precedent from HC Bombay in XL Telecom case, which established that cable jointing kits fall under Head 8547 of GST Tariff, leaving no scope for classification dispute.

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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.

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