TaxTMI 
TaxTMI 
2018 (11) TMI 1267
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....ce 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 - 01 and also submitted the copy of Challan evidencing payment of application fees of Rs. 5,000/-each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. They are registered under GST with GSTIN 33AABCR8852R1ZO. They have preferred an application seeking Advance Ruling on "Whether automotive chains (i.e., silent chains used in petrol engines and roller chains used in diesel engines) manufactured by the applicant are classifiable under HSN 8409 or 7315?" 2.1 The Applicant is engaged in manufacture and sale of following automotive chains which are used as a major component in manufacture of motor engines for motor vehicles (i.e., for both two wheelers and four wheelers). Silent chains/ Inverted tooth chains (Used in Petrol engines) Roller chains/ Bushing (Used in Diesel engines) These automotive chains are 'part of inte....
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....s. Commissioner of Customs (1998 (103) E.L.T. 548 (Tribunal)) = 1998 (2) TMI 262 - CEGAT, CALCUTTA, wherein the Tribunal has held that 'steel chains' used as parts of agricultural machinery are specifically covered under Tariff Heading 7315 and Voltas Ltd vs Commissioner of Customs, Mumbai (2003 (158) E.L.T (Tri-Mumbai) =2003 (8) TMI 97 - CESTAT, MUMBAI, where it was held that Note 2 to Section XVI are subject to exclusions under Note 1 which includes parts of general use under Note 2 to Section XV. In view of the above, the Applicant 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 internation....
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....) so that the engine's valves could open and close at proper time. 4.2 In terms of explanation (iii) and (iv) to Notification No. 1/2017 Central Tax (Rate) dt. 28-06-2017, tariff heading, 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 and the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall be applied for the interpretation and classification of goods. 4.3. Chapter 7315 covers "Chain and parts thereof, of Iron and Steel' and 'Articulated link chains and parts there of' covers tariff headings from 73151100 to 73151900. Tariff Heading 73151100 covers 'Roller chains' and 73151290 covers others. HSN Explanatory notes to heading 7315 is as under: 7315 CHAIN AND PARTS THEREOF, OF IRON OR STEEL - Articulated link chain and parts thereof : 7315.11 -- Roller chain 7315.12 -- Other chain : 7315.19 -- Parts 7315.20 - Skid chain - Other....
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.... to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), this heading covers parts of internal combustion piston engines of heading 84.07 or 84.08 (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) Note 2 to Section XV defines 'parts of general use 'as under: 2. Throughout this Nomenclature, the expression "parts of general use" means: (a) Articles of headings 7307, 7312, 7315, 7317 or 7318 and similar articles ....