2020 (7) TMI 50 - AAR - GST

Classification of Threaded Metal Nuts under Tariff item 7318 16 00 clarified; other items pending decision

The ruling determined that Threaded metal nuts should be classified under Tariff item 7318 16 00 as parts of general use, not specific to automobiles, ... Classification of supply - Threaded metal nuts which function same as standard nut - Various other products - Held that:- we do not take up all the products listed in the subject application for discussion. We shall take up applicant’s query only with respect to the first question pertaining to classification of the product ‘Metal Nuts with metrical threads, Metal Nuts without metrical threads and Metal Spring Nuts’. The jurisdictional officer has agreed with the contention of the applicant that the said products are required to be classified under Tariff item 7318 16 00 of the CTA, but has also submitted that if all the clearances are made to automobile/auto part manufacturers, then the classification should be under the appropriate sub-heading of 8708. We agree with both, the applicant as well as the jurisdictional officer that the subject goods namely, ‘Metal Nuts with metrical threads, Metal Nuts without metrical threads and Metal Spring Nuts’ should be classified under Chap.7318 16 00 since the said goods are being supplied to be used in many fields including electronic goods, solar energy and vehicles. Issues Involved:1. Classification of Threaded Metal Nuts2. Classification of Plastic Rivets3. Classification of Quick Adapter4. Classification of Plastic Pipe Clips5. Classification of Brackets and Channels6. Classification of Non-Return Valve7. Classification of Metal U Clips8. Classification of Fasteners and Spoilers9. Classification of Bracket10. Classification of Steel WasherDetailed Analysis:1. Classification of Threaded Metal Nuts:Issue: Whether Threaded metal nuts which function same as standard nut, merits classification under Tariff item 7318 16 00 and not under Tariff item 8708 99 00.Analysis: The applicant argued that Threaded metal nuts should be classified under Tariff item 7318 16 00, as they are parts of general use and not specific to automobiles. The jurisdictional officer agreed, noting that if all clearances are to automobile manufacturers, then classification under 8708 might be considered. The ruling referred to Section Note 2(b) to Section XVII and Note 2(a) to Section XV, indicating that parts of general use, such as nuts, are excluded from being classified as parts and accessories of motor vehicles.Conclusion: Threaded metal nuts merit classification under Tariff item 7318 16 00.2. Classification of Plastic Rivets:Issue: Whether Plastic rivets, capable of being used in various industries, merit classification under Tariff item 3926 90 99 and not under Tariff item 8708 99 00.Analysis: The applicant contended that Plastic rivets should be classified under 3926 90 99 due to their general use. The jurisdictional officer argued that since these rivets are tailor-made for specific uses in automobiles, they merit classification under 8708 29 00.Conclusion: The ruling did not provide a final decision on this issue due to the precedent set by the West Bengal Appellate Authority for Advance Ruling.3. Classification of Quick Adapter:Issue: Whether Quick Adapter, used to connect pipes and tubes, merits classification under Tariff item 3917 40 00 and not under Tariff item 8708 99 00.Analysis: The applicant claimed classification under 3917 40 00, while the jurisdictional officer suggested 8708 99 00 due to its specific end use in automobiles.Conclusion: The ruling did not provide a final decision on this issue due to the precedent set by the West Bengal Appellate Authority for Advance Ruling.4. Classification of Plastic Pipe Clips:Issue: Whether Plastic pipe clips merit classification under Tariff item 3926 90 99 and not under Tariff item 8708 99 00.Analysis: The applicant argued for classification under 3926 90 99, while the jurisdictional officer agreed, noting their general use.Conclusion: The ruling did not provide a final decision on this issue due to the precedent set by the West Bengal Appellate Authority for Advance Ruling.5. Classification of Brackets and Channels:Issue: Whether Brackets and Channels, made of plastic, merit classification under Tariff item 8708 99 00 and not under Chapter 39.Analysis: The applicant suggested classification under Chapter 39, while the jurisdictional officer argued for 8708 99 00 due to their specific use in vehicles.Conclusion: The ruling did not provide a final decision on this issue due to the precedent set by the West Bengal Appellate Authority for Advance Ruling.6. Classification of Non-Return Valve:Issue: Whether Non-Return Valve merits classification under Tariff item 8481 30 00 and not under Tariff item 8708 99 00.Analysis: The applicant argued for 8481 30 00, while the jurisdictional officer suggested 8708 99 00 due to its specific use in automobiles.Conclusion: The ruling did not provide a final decision on this issue due to the precedent set by the West Bengal Appellate Authority for Advance Ruling.7. Classification of Metal U Clips:Issue: Whether Metal U Clips merit classification under Tariff item 7326 90 99 and not under Tariff entry 8708 99 00.Analysis: The applicant suggested 7326 90 99, while the jurisdictional officer argued for 8708 29 00 due to their specific use in automobiles.Conclusion: The ruling did not provide a final decision on this issue due to the precedent set by the West Bengal Appellate Authority for Advance Ruling.8. Classification of Fasteners and Spoilers:Issue: Whether Fasteners and Spoilers merit classification under Tariff item 8708 29 00 and not under Tariff entry 8708 99 00.Analysis: The applicant argued for 8708 29 00, while the jurisdictional officer agreed, noting their specific use as parts of the body of motor vehicles.Conclusion: The ruling did not provide a final decision on this issue due to the precedent set by the West Bengal Appellate Authority for Advance Ruling.9. Classification of Bracket:Issue: Whether Bracket merits classification under Tariff item 8708 99 00 and not under Tariff item 8708 29 00.Analysis: The applicant suggested 8708 29 00, while the jurisdictional officer argued for 8708 99 00 due to its specific use in supporting wiring harness and pipes in vehicles.Conclusion: The ruling did not provide a final decision on this issue due to the precedent set by the West Bengal Appellate Authority for Advance Ruling.10. Classification of Steel Washer:Issue: Whether Steel Washer merits classification under Tariff item 7318 21 00 and not under Tariff item 8708 99 00.Analysis: The applicant argued for 7318 21 00, while the jurisdictional officer agreed, noting their general use.Conclusion: The ruling did not provide a final decision on this issue due to the precedent set by the West Bengal Appellate Authority for Advance Ruling.Order:Final Decision: The only product addressed in this ruling is the Threaded metal nuts, which merit classification under Tariff item 7318 16 00. Other products were not addressed individually due to the precedent set by the West Bengal Appellate Authority for Advance Ruling, which cautioned against accepting applications covering multiple products in a single application.