Motor vehicle seat parts remain classifiable under tariff item 9401 90 00 and attract GST at 18%.

Parts of seats of a kind used for motor vehicles are classified under tariff heading 9401, specifically tariff item 9401 90 00, because heading 9401 covers seats and parts thereof, while tariff item 9401 20 00 applies only to the seats themselves. The amended rate structure distinguishes between motor vehicle seats and their parts: entry 210A of Schedule IV covers only the seats of a kind used for motor vehicles, while entry 435A of Schedule III continues to apply to parts thereof. The parts are therefore taxable at 18% under entry 435A of Schedule III.

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Issues: Whether parts of seats of a kind used for motor vehicles are classifiable under Tariff heading 9401, specifically Tariff item 9401 90 00, and whether they attract GST at 18% under entry 435A of Schedule III to Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, as amended.

Analysis: The classification had to be determined with reference to the tariff headings, the Section and Chapter Notes of the Customs Tariff Act, 1975, and the applicable Explanatory Notes. Tariff heading 9401 covers seats and parts thereof, while tariff item 9401 20 00 specifically covers seats of a kind used for motor vehicles. On the amended rate structure, entry 210A of Schedule IV carves out only the seats of a kind used for motor vehicles, whereas entry 435A of Schedule III continues to cover parts thereof. The relevant circular also supported this distinction.

Conclusion: The parts of seats of a kind used for motor vehicles remain classifiable under tariff heading 9401, specifically tariff item 9401 90 00, and are taxable at 18% under entry 435A of Schedule III.

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