IGST rate classification for CTH 8483 parts: lower 18% schedule applied after the 2017 amendment

Imported parts of diesel engines and earth moving equipment classified under CTH 8483 are discussed as attracting IGST at 18% after Notification No. 35/2017-IT(RT) inserted Sl. No. 369A in Schedule III for plain shaft bearings under CTH 8483 and omitted those words from Schedule IV. The later amendment by Notification No. 43/2017-IT(RT) is stated not to have displaced the applicability of Sl. No. 369A. On that basis, the Revenue position that the goods continued in Schedule IV at 28% was rejected, and the lower rate was treated as applicable to the importer.

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Issues: Whether the imported parts of diesel engines and earth moving equipment, classified under CTH 8483, were liable to IGST at 28% under Schedule IV of Notification No. 01/2017-IT(RT) dated 28.06.2017 or at 18% under Schedule III after insertion of Sl. No. 369A by Notification No. 35/2017-IT(RT) dated 13.10.2017.

Analysis: The imported goods were admittedly classified under CTH 8483. Notification No. 35/2017-IT(RT) inserted Sl. No. 369A in Schedule III for plain shaft bearings under CTH 8483 and omitted the words "plain shaft bearings" from Sl. No. 135 in Schedule IV. The later amendment by Notification No. 43/2017-IT(RT) did not displace the applicability of Sl. No. 369A to the imported goods. The claim of the Revenue that the goods continued to fall under Schedule IV was rejected, and the benefit of the lower rate was held to be available to the importer.

Conclusion: The goods were correctly entitled to IGST at 18% under Sl. No. 369A of Schedule III, and not at 28% under Schedule IV.

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