AI Drafter 
TaxTMI 
TaxTMI 
2018 (6) TMI 515
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....use without being rotated and coupled with motor affixed to it. Utility of motor is to facilitate the running of any machine or conveyors in industries, whereas the speed of motor is fixed and it needs to be controlled, Gears are used to control the speed of final machine. As many customers insist on the Geared Motor, wherein Electric Motor is assembled with the Gear Box and is sold and cleared as a 'Geared Motor'. Motor in this case may be manufactured or bought-out item. They submitted that in the erstwhile regime of Central Excise, mere Gear Boxes were classified under HSN Code 8483 and Geared Motor under HSN code of 8501, and both their products were being taxed at 12.5% under Central Excise. They submitted that under the GST regime, th....
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....hich an inference can be drawn about the same. It was informed that the applicant vide letter dated 14.08.2017 has submitted as follows :- Major Inputs : Major inputs utilized for the production of Geared Motor and its HSN Code with GST Rate of duty is mentioned below : Sl. No. Name of Inputs HSN Code Rate of GST 1 Electric Motor 8501 18% 2 Bearing 8482 28% 3 Casting 7428 28% 4 Steel Round Bar 7206 18% 5 Fastener 7318 28% 6 Oil Seal 4016 28% 7 Oil 3403 28% Process of Manufacturing : The process is explained as - Gear Box a. Casting of Gear Case machined on CNC Horizontal Machining Centre. b. Steel Round Bar underg....
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....trical current in to rotating mechanical motion. HSN code of Electric motor 8501 and GST rate of Electric Motor is 18%. 4.3 Hence, it is submitted that the Geared Motor is a device which is used to change the speed & torque of an electric motor. Accordingly, it is noted that the correct applicability of HSN code of product 'Geared Motors' fall under HSN 8483 4000 specifically which is described as "Gears and Gearing, other than toothed wheels, chain sprockets and other transmission elements presented separately, ball or roller screws; gear boxes and other speed changers, including torque converters" . Accordingly, it will be taxable under Schedule IV of GST Act with 28% of GST rate. 5.1 The Assistant Commissioner, State Tax, Ghatak-51....
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....ile Gujarat VAT Act, but under GST schedule, different rates are applicable for different machineries. 5.5 In view thereof, as the 'Geared Motor' is used in (i) Automobile Sector, (ii) Machinery, (iii) Home Appliances and (iv) Tools, and which 'Geared Motor' is used in which types of industries is not clear from the application, it has been opined that that product 'Geared Motor' is classifiable under respective commodity parts on the basis of use in specific commodity (HSN - 8428, 8509, 8708, 8483). 6. We have considered the submissions made by the applicant in their application for advance ruling as well as at the time of personal hearing on 15.11.2017. We have also considered the information and views submitted by the Commissioner ....
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....shall, so far as may be, apply to the interpretation of this notification." 7.3 Further, Hon'ble Supreme Court in the case of L.M.L. Ltd. Vs. Commissioner of Customs [Civil Appeal No. 3764 of 2003, decided on 21.09.2010 reported at 2010 (258) ELT 321 (S.C.)] has held as follows :- "12. In Collector of Central Excise, Shillong v. Wood Crafts Products Ltd. reported in (1995) 3 SCC 454, it was held by this Court that as expressly stated in the statements of objects and reasons of the Central Excise Tariff Act, 1985, the Central Excise Tariffs are based on the Harmonious System of Nomenclature (HSN) and the internationally accepted nomenclature was taken into account to reduce disputes on account of tariff classification. Accordingl....
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....n thus be varied according to the arrangement of gears set. (2) ...... (3) ...... ...... The heading does not cover gear boxes or other variable speed changers combined with a motor; these are classified in the same heading as the motor." [underlining supplied] 8.3 The Explanatory Notes for 'Electric Motors' under Tariff Heading 8501 of the Harmonised System of Nomenclature, inter-alia, provides as follows :- "(I) ELECTRIC MOTORS Electric motors are machines for transforming electrical energy into mechanical power. ......... (A) ......... Motors remain classified here even when they are equipped with pulleys, with gears or gear boxes, or with a flexible shaft for ....