TaxTMI 
TaxTMI 
TaxTMI 
2018 (6) TMI 426
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....ally with the machinery of headings 8425 to 8430 ? (ii) What is the classification and rate of Goods and Services Tax for Hydraulic Gear Pump and Piston Pump which are used as parts for agricultural machinery ? (iii) What is the classification and rate of Goods and Services Tax for Hydraulic Gear Pump and Piston Pump which are used as parts of machine tools ? (iv) What is the classification and rate of Goods and Services Tax for Steering unit which is a kind of hydraulic valve and used as intermediate parts of hydraulic systems in agricultural harvesting machine ? (v) What is the classification and rate of Goods and Services Tax for Servo Drive (Electric Inverter or Resolver Inverter) ? (vi) What is the classification and rate of ....
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....31 4930 as "Parts of other excavating, leveling, tamping or excavating machinery for earth, mineral or ores". 4.2 The applicant requested that item stated at Sr. 4 namely Steering Unit (Hydraulic Orbital Valve) should be correctly classified under Heading 8481 as it is a valve on which steering unit is mounted. Sample is shown to us and catalogue is provided. 4.3 The Bill of Entry submitted is mentioning Heading 8708. The representative was therefore requested to file evidences as to show that there are conflicting views in Customs itself. 5. The applicant, vide letters dated 07.12.2017 and 11.12.2017, submitted copy of Bill of Entry No. 427360 dated 05.12.2017, wherein the product 'Steering Unit i.e. Hydrostatic Steering Unit (Hydraulic....
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....er referred to as the 'GGST Act, 2017') or the Integrated Goods and Services Tax Act, 2017. 8.2 It is observed that the Explanation (iii) and (iv) of the Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 provides as follows :- "Explanation. - For the purposes of this notification, - (i) ...... (ii) ...... (iii) "Tariff item", "sub-heading" "heading" and "Chapter" shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (iv) The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shal....
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.... : (a) Parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings; (b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 aw appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517; (c) All other parts are to be classif....
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....parts suitable for use solely or principally with the machinery of headings 8425 to 8430" whereas Harvesting Machinery falls under Chapter Heading 8433. Therefore, the product "Steering Unit (Hydraulic Orbital Valve)" cannot be termed as "parts suitable for use solely or principally with the machinery of headings 8425 to 8430". The product "Steering Unit (Hydraulic Orbital Valve)" also does not merit classification under Tariff Item 8433 9000 as "Parts" of Harvesting or threshing machinery etc. in view of Section Note 2(b) Section XVI. 11.1 The Chapter Heading 8481 of the Customs Tariff Act, 1975 applies to "Taps, cocks, valves and similar appliances for pipes, boiler, shells, tanks, vats or the like, including pressure-reducing valves and....
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.... under Tariff Heading 8481 of the Customs Tariff Act, 1975. Further, as the expression "parts" and "parts and accessories" under Section XVII of the Customs Tariff Act, 1975 do not apply to articles of heading 8481 in view of Note 2(e) of Section XVII of the Customs Tariff Act, 1975, and the product 'Steering Unit (Hydraulic Orbital Valve)' is item of Tariff Heading No. 84.81, the said product cannot be considered to be parts of vehicle, as it is excluded from Section XVII and hence the said product do not fall under Tariff Heading 8708 as "Steering wheels, steering columns and steering boxes; parts thereof". 11.4 Further, Explanatory Notes to Heading 87.08 of 'parts and accessories of the motor vehicles of headings 87.01 to 87.05' inter-a....