TaxTMI 
TaxTMI 
2020 (7) TMI 50
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....onality, merits classification under Tariff item 3926 90 99 and not under Tariff item 8708 99 00? A.3 Whether Quick Adapter not only capable of being used to connect pipes and tubes in the interior of a motor vehicle, but also for similar functionality in other industries, merit classification under the Tariff item 3917 40 00 and not under Tariff item 8708 99 00? A.4 Whether plastic pipe clips merits classification under the Tariff item 3926 90 99 and not under the Tariff item 8708 99 00? A.5 Whether Brackets and Channels merits classification under Tariff item 8708 99 00 despite being "parts of general use" made of plastic, and not under Chapter 39 of the First Schedule? A.6 Whether Non-Return Valve merits classification under Tariff item 8481 30 00 as it is capable of being used in the internal liquid lines of various machineries and equipment, and not under Tariff item 8708 99 00? A.7 Whether Metal U Clips merits classification under the Tariff item 7326 90 99 as it is not only capable of being used in the interior or exterior of a motor vehicle to join panels but in other machineries and equipment as well, and not under the Tariff en....
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....neral Explanatory Notes would also be applicable to classification of goods post the introduction of GST. 2.5 The applicant has stated that certain Section Notes and Sections of the CTA are relevant in this case and have reproduced Section Note 2 and 3 to Section XVII and Section Note 2 to Section XV. 2.6 Applicant has also submitted that, to determine the correct classification of a product, it is necessary to consider the General Rules for Interpretation in addition to the Section Notes and Chapter Notes of First Schedule and they have reproduced the provisions of Rule 3(a) of the General Rules for interpretation. 2.7 Applicant has further discussed all the products, classification which is required by them. The products discussed by them are : Metal Nuts with Metrical Thread, Metal Nuts without Metrical Thread and Metal Spring Nuts ; Plastic Rivets ; Adaptor for plastic pipe ; Plastic Pipe Clips ; Plastic Brackets, Plastic Cable Channels ; Non - Return Valve ; Metal U Clips ; Moulding Fasteners, Spoiler Lips ; Bracket (Metal Assemblies) and Stainless Steel Washer. Applicant has also presented a table showing the likely classifications for each product mentioned above as....
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....ations at specific locations. Such Rivets cannot be called as General Use items and have to be manufactured as per the customer's specific requirement. Hence, it is felt that such "Plastic Rivets' meant for specific use, which in this case is for automobiles, and on the body, merit classification under the heading 87082900. 3.2.3 Adaptor for plastic pipe: Adaptor cannot be manufactured without specific requirements in terms of use. Hence, the applicant product has to be tailor made. By their own admission, it has to be classified under the heading 87089900, which appears to be the appropriate heading in view of the specific end use. 3.2.4. Plastics Pipe Clips: It appears that -Plastics Pipe Clips" merits classification under the heading 39269099, in view of its general use and apparent lack of tailor made requirement. 3.2.5 Plastics Brackets, Plastic Cable Channels: By applicant's own admission, the said part is tailor made to suit a vehicle's requirement. Hence, it merits classification under the heading 87089900. 3.2.6 NON-RETURN VALVE: This part cannot be classified under 84813000, and it merits classification under the heading 87089900, as by applicant's own a....
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.... of classification of around 10 products being manufactured by the applicant. 5.1 We find that the applicant is a registered person under GST Act and involved in the developing and manufacturing of various types of fasteners and other accessories for a variety of industries. Applicant is engaged in the manufacture of, amongst others, industrial clip fasteners and prototyping assembly systems, which are primarily used in automobiles. Product manufactured by the Applicant are supplied locally, typically to businesses which are registered under GST Act all over India. 5.2 Applicant vide the subject application have asked for clarification with respect to classification of certain products manufactured and supplied by them like industrial clips and fasteners, etc., which are used by their customers in manufacturing of automobiles, engineering goods, etc., and also used in manufacturing by the energy sector. 5.3 The application was admitted on the basis of oral contentions and written submissions made by both, the applicant as well as the jurisdictional officer. We find that the applicant has raised multiple questions requesting for classification of many products which cannot ....
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.... to various industries, other than the automobile industry. The applicant has also submitted that said products are essentially similar to standard nuts and may be used in the interior or exterior of a motor vehicle, by the Energy Sector specifically in Solar energy equipment) and in Electronic Goods. 5.6.1 The applicant has referred to various Section Notes of the First Schedule of the CTA and has also cited case laws in support of their contention that the said products are required to be classified under Tariff item 7318 16 00 of the CTA, despite being capable of being used in the exterior or interior of a motor vehicle. 5.6.2 The jurisdictional officer has agreed with the contention of the applicant that the said products are required to be classified under Tariff item 7318 16 00 of the CTA, but has also submitted that if all the clearances are made to automobile/auto part manufacturers, then the classification should be under the appropriate sub-heading of 8708. 5.7 Section XVII (Vehicles, Aircraft, Vessels and Associated Transport Equipment) of the GST Tariff covers products falling under Chapters 86 to 89. As per Section Note 3 to Section XVII References in Chapters....