TaxTMI 
TaxTMI 
2019 (7) TMI 1334
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....t the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- STATEMENT OF RELEVANT FACTS HAVING A BEARING ON THE QUESTION (S) RAISED 1. M/s. Nexture Technologies Private Limited, situated at Gat No. 102, Milkat No 623/2 Ambethan, Chakan Tal, Khed Chakan, Pune; Maharashtra-410501 ("Applicant') is registered with jurisdictional authorities vide GSTIN 27AADCV8711DIZE and is, inter alia engaged in manufacture and supply of following goods ('impugned goods'): • Plastic handle for motor vehicle doors (Including lever handle) • Plastic fittings for such for motor vehicle's doors such as: • Bracket • Housing • Bracket housing • asket • tat....
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.... 3a. STATEMENT CONTAINING APPLICANT'S INTERPRETATION OF LAW AND FACTS I. Applicant is eligible for advance ruling 1.1 Sections 97(2) of the Central Goods and Services Tax Act, 2017 ("CGST Act') stipulates the questions on which an advance ruling may be sought. An identical provision is contained in Section 97(2) of the Maharashtra Goods and Services Tax Act, 2017 (MGST Act'). Notable that clause (a) and (e) of Section 97(2) envisaging issues pertaining to classification, applicability of notification and determination of liability to pay tax squarely cover the instant issue. 1.2 Further, since the issue is novel and has not been dealt in any proceedings under the CGST Act and the MGST Act, the instant application merits consideration for advance ruling II. Applicant's understanding II.1 As per the Applicant's understanding, the impugned goods merit classification under Entry at S. No. 111 of Schedule III of Notification No. 1/2017-Central Tax (Rate) (Notification 1/2017') exigible to central tax at the rate of 9 per cent. (in toto goods and services tax rate of 18 per cent.). The relevant extract of entry is reproduced as under: III. 3926 plastics and artic....
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....ding 3926 under First Schedule of Customs Tariff Act is reproduced as under: Chapter 39 Plastics and articles thereof 3926 Other articles of plastics and articles of other materials of heading 3901 to 3914 3926 30 --- Fittings for furniture, coachwork or the like 3926 30 10 --- Of polyurethane foam 3926 30 90 --- Other A.2 In order to classify impugned goods under Sub-Heading 3926 30, they must satisfy the description Fittings for furniture, coachwork or the like'. For this purpose, it is pertinent to delineate the scope of Sub-heading 3926 30. A.3 Sub-heading 3926 30 covers fittings. The term fittings has not been defined in Customs Tariff Act or Notes appertaining to relevant Section and Chapter. A.4 The meaning of term 'fittings' as obtained from various sources, are reproduced as under: • The Oxford English Dictionary [accessible at <https://en.oxforddictionaries.com/definition fitting>, last accessed on February 4, 2019) defines the term as a small part on or attached to a piece of furniture or equipment'; • The Cambridge Dictionary [accessible at <https://dictionary.cambridge.org dictionary english fitting, last....
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....by the classification is required to be determined in terms of the description of goods against Headings and Sub-headings and Notes to relevant Section and Chapter A.9 Note 1 to Chapter 39 defines the term "plastics' in following manner: "Throughout the Nomenclature the expression 'plastics' means those materials of headings 39.01 to 39.14 which are or have been capable, either at the moment of polymerisation or at some subsequent stage, of being formed under external influence (usually heat and pressure, if necessary with a solvent or plasticiser) by moulding, casting, extruding, rolling or other process into shapes which are retained on the removal ofthe external influence." A.10 It is submitted that impugned goods are small parts and equipments fixed onto the door of an automobile. Further, the impugned goods are manufactured through moulding machines using PVC granules. These processes and ingredients are covered with the sweep of Note 1 to Chapter 39. Hence, by application of GRI 1, the impugned goods are squarely covered under the sweep of Sub-heading 3926 30. A.11 From the above, it is clear that impugned goods merit classification under Sub heading 3926 30....
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....= 1995 (3) TMI 93 - SUPREME COURT, the Apex Court held that Explanatory Notes to HSN provide a safe guide for interpretation of the tariff schedule. C.4 As per the Explanatory Notes, Heading 8708 covers only those parts and accessories which satisfy the following criteria: • They must be identifiable as being suitable for use solely or principally with the above-mentioned vehicles; and • They must not be excluded by the provisions of the Notes to Section XVII (see the corresponding General Explanatory Note) C.5 As per Note 2 to Section XVII, the expression 'parts' and 'parts and accessories will not include parts of general use as defined in Note 2 to Section XV, of base metal (Section XV), or similar goods of plastic (Chapter 39). Such parts shall not be classifiable as under Section XVII even if they are specifically identifiable as parts or parts and accessories for the goods of Section XVll. C.6 Further, the Explanatory Notes delineate the scope of above exclusion in following manner: "(A) Parts and accessories excluded by Note 2 to Section XVII This Note excludes the following parts and accessories, whether or not they are i....
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....ere classification of plastic door handle of a truck was under consideration. The Ruling relied upon the interpretatory notes to Section XVII. As per the Ruling, the expression "parts and parts and accessories" of Section XVII [Vehicles, Aircraft, Vessels and Associated Transportation Equipment) of the Harmonized Tariff Schedule of the United States (HTSUS) do not apply to "parts for general use," as defined in Legal Note 2 to Section XV, of base metal such as mountings, fittings and similar articles suitable for furniture, doors, staircases, windows, blinds, coachwork, saddlery, trunks, chests, caskets or the like (Section XV); or similar goods of plastics (Chapter 39), whether or not those parts are identifiable for goods of that section. Accordingly, similar parts (made of plastic) which are included in the term "parts of general use" shall not be treated as 'parts' or 'parts and accessories' of goods of Section XVII and are classifiable as goods of Heading 3926, HTSUS. Similarly, Cross ruling NYG84953 also classified various types of door handles (inside as well as outside) under Heading 3926. D.3 In cross ruling N096498, it was held that door handle component made of plasti....
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....cord additional grounds in respect of the aforesaid appeal. The Applicant in succeeding paragraphs advances submissions intended to be placed on record. These submissions are mutually exclusive and without prejudice to each other. The Applicant further craves leave to rely upon its submissions made in the main application filed before the Authority for Advance Rulings, Maharashtra. B. Additional Submissions The Impugned Goods do not merit classification under heading 8708 B.1 Heading 8708 falls under Section XVII of the HSN which covers 'Vehicles, Aircrafts and Associates Transport Equipment', B.2 The Applicant submits that as per the HSN Explanatory Notes to Heading g 708 [on Page No. 'XVII-8708-1' of the HSN] 1 (Page 25), this Heading covers only those parts and accessories which satisfy the following two criterias: (i) They must be identifiable as being suitable for use solely or principally with the motor vehicles; and (ii) They must not be excluded by the provisions of Section Notes of Section XVII B.3 It is important to highlight that Section Note 2 to Section XVII [Page No. 'XVII-1' of the HSN] (Page 27) stipulates that the expression 'parts'....
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....Stator c. Glove box locking Above mentioned products ('impugned goods') are manufactured using a moulding machine with the help of plastic granules. Applicants understanding: a. The impugned goods merit classification under Entry at S. No. 111 of Schedule III of Notification No. 1/2017-CentraI Tax (Rate) ("Notification 1/2017') to central tax at the rate of 9 per cent. (accordingly goods and services tax rate of 18 per cent.). The relevant extract of entry is S.No. Chapter / Heading item Subheading / Tariff item Description of Goods 111 3926 PVC Belt Conveyor, Plastic Tarpaulin b. For the purpose of determining classification under Notifications 1/2017-Central Tax (Rate) and 2/2017 Central Tax (Rate). Similarly, Explanation (iv) adopts the general rules for interpretation, Section Notes and Chapter Notes as provided in the Customs Tariff Act, 1975 for interpreting the Notifications. The First Schedule of the Customs Tariff Act, Chapter 39 covering 'plastics and articles thereof arise for consideration in the present instance, Comments: As above mentioned entry at s. BO-111 of schedule. II of notification no. 1/2017- Central Tax (Rate)....
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....nally standardised system to classify goods. The WCO has also issued Explanatory Notes to HSN ("Explanatory Notes) providing assistance in interpretation of the commodity groups created under HSN. The tariff schedule of Customs Tariff Act is a derivative of the HSN. Accordingly, the Explanatory Notes provide an insight into the meaning of expressions. As per the Explanatory Notes, Heading 8708 covers only those parts and accessories which satisfy the following critierias: • They must be identifiable as being suitable for use solely or principally with the above-mentioned vehicles; and • They must not be excluded by the provisions of the Notes to Section XVII As per Note 2 to Section XVII, the expression parts and parts and accessories' will not include parts of general use as defined in Note 2 to Section XV, of base metal (Section XV), or similar goods of plastic (Chapter 39). Such parts shall not be classifiable as under Section XVII even if they are specifically identifiable as parts or parts and accessories for the goods of Section XVII. "(A) Parts and accessories excluded by Note: 2 to Section XV! This Note excludes the following parts a....
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....drawing pins, corrugated nails, staples (other than those of heading 8305) and similar articles, of iron or steel, whether or not with heads of other material, but excluding such articles with heads of copper 7318: Screws, bolts, nuts, coach-screws, screw hooks, rivets, cotters, cotter-pins, washers (Including spring washers) and similar articles, of iron or steel 9114: Other clock or watch parts 8301: Padlocks and locks (key, combination or electrically operated), of base metal; clasps and frames with clasps, incorporating locks, of base metal; keys for any oe the foregoing articles, of base metal 8302: Base metal mountings, fittings and similar articles suitable for furniture, doors, staircases, windows, blinds, coachwork, saddlery, trunks, chests, caskets or the like; base metal hat-racks, hatpegs, brackets and similar fixtures; castors with mountings of base metal; automatic door closers of base metal 8308: Clasps, frames with clasps, buckles, buckle clasps, hooks, eyes, eyelets and the like, of base metal, of a kind used for clothing, footwear, awnings, handbags, travel goods or other made up articles; tubular or bifurcated rivets, of base metal; beads and spang....
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....me their contention that the goods in question are covered under Chapter 3926 of the GST Tariff as articles of plastic and not under Chapter 8708 which covers "Parts and accessories of motor vehicles of headings 8701 to 8705". The jurisdictional office, on the other hand, has contended that the said goods will be covered under Chapter Heading 8708 of the GST Tariff. We shall therefore discuss both the Chapters and their relevance to the subject goods, in respect of which the queries have been raised by the applicant. We find that as per the Explanatory Notes, the Heading 8708 covers only those parts and accessories which satisfy the following criteria: • They must be identifiable as being suitable for use solely or principally with the above-mentioned vehicles; and • They must not be excluded by the provisions of the Notes to Section XVII (see the corresponding General Explanatory Note) From the Notes to Section XVII, we see that the expression "parts" and "parts and accessories" (whether or not they are identifiable as for the goods of this Section), do not apply to parts of general use, as defined in Note 2 to Section XV of base metal (Section X....