TaxTMI 
TaxTMI 
TaxTMI 
2018 (11) TMI 1267
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....and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. M/s. BorgWarner Morse Systems India Private Limited, Administrative office at No. 79, SIDCO Industrial Estate, Kakkalur, Tiruvallur-602003 (hereinafter called the Applicant or the Company) are engaged in the manufacture and sale of Automotive Chains which are used as a major component in manufacture of motor engines for motor vehicles. The Applicant has submitted the copy of application in Form GST ARA -....
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.... the Applicant continued to classify their products under HSN 8409. The relevant entry from the GST rate schedule is tabulated below: HSN Description as per Central Excise tariff schedule 8409 Parts suitable for use solely or principally with the engines of heading 8407 or 8408 Many of the customers of Applicant had insisted that they should categorize the automotive chains under HSN 7315 and charge GST @ 18% instead of 28%. The relevant entry from the GST rate schedule is tabulated below: HSN Description as per Central Excise tariff schedule 7315 Chain and parts thereof of iron or steel falling under 7375 20, 7315 81, 7315, 82, 7315 89, 7315 90 After various deliberations and suggestions received from the Industry, the Applicant ....
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....nt had sought Advance Ruling to seek clarity on classification to be adopted for supply of automotive chains to their customers. 3.1 The Authorized Representative of the Applicant was heard in the matter. They had stated that their products are transmission chains of Iron & Steel and have uses mainly in automobile two wheeler and four wheeler engines and can also be used in Gensets. They had also stated that their products are articles of general use which are covered as per notes to Section XV under chapter 73 and also notes to Section XVI(Chapter 84) excludes articles of general use and hence not classifiable under 8409. They stated that internationally too they are classifying under 7315. They submitted sample invoices/ contract for suc....
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....turers. The import documents indicate the imports from related party as 'ENGINE CHAIN PARTS' with classification as 73151190. 4.1 The issue involved in this case is the classification of the product Automotive Chains manufactured by the Applicant. From the various submissions of the Applicant, it is evident that the items are transmission chains which are used in automotive engines and machinery for transmitting mechanical power from one shaft to another and are made of steel. They are articulated chains i.e. made of a series of links or plates which are driven by external sprockets and do not have any other assembly. The Applicant supplies these mainly to automotive industries where they are used in internal combustion engine, they synchr....
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....general, their intended use. It includes of their articulated link chain (e.g. roller chain, inverted tooth ("silent") chain and Galle chain), non-articulated link chain including stud-link chain (whether forged, cast, welded, stamped from sheet or strip metal or made from wire, etc), and ball chain. The heading includes: (1) Transmission chains for cycles, automobiles or machinery. (2) Anchor or mooring chains; lifting, haulage or towing chains; automobiles skid chains. (3) Mattress chains, chains for sink stoppers, lavatory cisterns, etc. All these chains may be fitted with terminal parts or accessories (e.g. hooks, spring hooks swivels, shackles, sockets, rings and split rings and tee pieces). They may or may not be cut to lengt....
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....(e.g., piston, cylinders and cylinders blocks, cylinders heads; cylinders linters; inlet or exhaust valves; inlet or exhaust manifolds; piston rings, connecting-rods; carburettors, fuel nozzels), However, the heading excludes; (a) Injection pumps (Heading 84.13) (b) Engine crank shafts and cam shafts (heading 84.83) and gear-boxes (heading 84.83). (c) Electrical ignition or starting equipment (including, sparking plugs and glow plugs) (heading 85.11) HSN Explanatory Note (1) (g) of Section XVI which covers chapter heading 84 states as under: 1. This Section does not cover: (a)..................... (g) Parts of general use, as defined in Note 2 to Section XV, of base metal (Section XV), or similar goods of plastics (Chapter 39....