TaxTMI 
TaxTMI 
2024 (3) TMI 674
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....s or circumstances supporting the original advance ruling have changed. 4. In terms of Section 104 of the Act, where the Authority finds that advance ruling pronounced by it under sub-section (4) of Section 98 or under sub-section (1) of section 101 has been obtained by the applicant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab initio and thereupon all the provisions of this Act or the rules made thereunder shall apply to the applicant as if such ruling had never been made. 5. At the outset, we would like to make it clear that the provisions of both the Central Goods 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. N. R. Engineering Industries, SF No. 573/1, KNG Pudur Road, Sankara Nagar, Somayampalayam, Coimbatore, Tamilnadu-641108 (hereinafter referred to as the 'Applicant') is engaged in the ....
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....s required for the steel hooks are programmed and fed in these CNC Machines. The coils fed into the CNC machines comes out as the hook of the required shape. After this process, in the end of the hook a hole is punched to hold the cable (photo attached). 3.2. On interpretation of law, the Applicant states that - • Under the Goods and Services Tax Act, both Central Goods and Services Tax Act and State Goods and Services Tax Act, the rate of tax for the goods and services are specified in the notifications issued by virtue of the powers conferred under section 9 of the respective Acts; The rate of tax for the goods are specified in the Notification No. 1/2017-C.T.(Rate) dated 28-6-2017 as amended from time to time; The rate of tax depends upon the Description of the goods specified in the notification and Chapter/ Heading/ Sub-heading/ Tariff item; The clause (iii) and clause (iv) of this notification reads as under: "(iii) "Tariff item", "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 (51 of 1975). (iv) The rules for the ....
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....o the Customs Tariff Act is as under • There is a specific reference to Seats of a land used for motor vehicles in HSN 94012000. There is a reference to the Parts for the above items. While HSN 94019100 parts of wood, HSN 94019900 covers parts of the items mentioned 9401 which are made of other than Wood. So the Car Seat Cushion Suspension Wires and steel hooks will be covered by the HSN 94019900. • They rely on the decision of the Hon'ble Authority for Advance Ruling in the case of M/S. Daebu Automotive Seat India Private Limited passed on 7th May 2021. The reference number is TN/17/ARA/2021. This is reported in 2021 (6) TMI 685-Authority For Advance Ruling, Tamilnadu, wherein para 8.5 of the decision, it has been observed by the AAR as follows: Tariff Item Description (1) (2) 8708 PARTS AND ACCESSORIES OF THE MOTOR VEHICLES OF HEADINGS 8701 TO 8705 8708 10 - Bumpers and parts thereof : 8708 10 10 --- For tractors 8708 10 90 --- Other . - Other parts and accessories of bodies (including cabs) : 8708 21 00 -- Safety seat belts 8708 22 00 - - Front wind....
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....a seat, which fits into the above observations of the AAR and therefore the said items manufactured by them will fall under the HSN 94019900 and liable for GST at the rate of 18%. 4.1. The State jurisdiction Officer viz. the Assistant Commissioner (ST), Velandipalayam Assessment Circle stated that the car seat cushion suspension wires and steel hooks manufactured by the applicant will fall under HSN 87089900 thereby attracting CGST of 14 % plus SGST of 14 %. The Officer had relied on the decision of the Andhra Pradesh Authority for Advance Rulings (AAR), vide which the AAR had recently held that the car seat covers would be levied with the highest GST rate of 28%, in the case of M/s. Saddles International Automotive & Aviation Interiors Private Limited. The Members had observed that 'seat cover' are not same as seat as they have different agenda than a seat has altogether. The bench stated in the judgement that, "They are meant for the protection of the seats and functional value of seat covers is the comfort and convenience it extends to the driver and the passengers. Thus, the 'seat covers' are not essential parts of the seats but accessories that enhance their....
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....ey are merely to improve the efficiency and convenience of the seat and do not form part of the seat. • Therefore, the goods supplied by them cannot become essential pieces/parts of the seats. The seats are complete by themselves without these mechanisms. In the products supplied by the applicant, a person cannot directly sit and rest. • Hence car seat cushion wires and steel hooks cannot be called as parts of seats falling under HSN 94019900 & 94012000. Alternately, they can be termed as accessories of motor vehicle and classification under 87089900. The Officer placed reliance on the ruling of the Hon'ble Supreme Court in the case of Commissioner of C.Ex., Delhi Vs. Insulation Electrical (P) Ltd.[2008 (224) ELT 0512 SC], wherein in a similar case, the Apex court, has held that such goods are classifiable under CETH: 8708. He further stated that the questions raised in the application are not pending or has not been decided in any proceedings in the case of the Applicant as per records. 5. The Applicant, after consent, was given an opportunity to be heard in person on 30.11.2023. Shri P. Paul Thangam, Chartered Accountant, Shri. Aravind Thangam,....
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....l accessories of motor vehicles as well whereas Chapter heading 9401.00 covers all type of seats and 'parts' thereof. 6.4. From the above explanation, we find that for any product to classify under chapter 9401 9000(classification given in para 3.2 above), the same has to be in the nature of 'part of seats'. The term 'part' per se means a portion of an equipment or a machinery which is essentially linked to the functioning of that particular equipment or machinery. In other words, 'part' is an integral element of machinery or equipment without which the specific product cannot function. The 'part' in question should be so inextricably be linked to the product that the same cannot be brought into any form without the 'part' in question. 6.5. With this concept of 'part', we proceed to analyse the goods in question. As per the write-up submitted by the Applicant regarding 'Cushion Suspension wire', they have stated that- "The Cushion Suspension wire is used for the manufacture of car seats. This is used to give cushion effect in the car seats. Earlier coil springs were used for this purpose. Now instead of ....
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....; and its 'parts' and 94012000, in specific, covers seats of a kind used for Motor vehicles. From the above discussions, we find the goods in question by virtue of their structure and function form an essential 'part' of the 'seats'. On the other hand, explanatory notes of Chapter 87 covers 'parts' of motor vehicles and there is no specific entry, per se, which covers any part of the 'seats' under chapter 87. Hence, as a corollary, the subject goods ought to be appropriately classified under chapter 94, since a specific entry prevails over a general entry. 6.8. We also observe that the Notes to Section XVII, which covers Chapter headings 86-89, as given in HSN, under the heading 'General' states that- "(III) Parts and Accessories : It should be noted that Chapter 89 makes no provision for parts (other than hulls) or accessories of ships, boats or floating structures. Such parts and accessories, even if identifiable as being for ships etc., are therefore classified in other Chapters in their respective headings. The other Chapters of this Section each provide for the classification of parts and accessories of the vehicles, ....
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....ts and accessories must not be excluded by the provisions of notes of Section XVII. As discussed in para 6.9 above, it is clear that vehicle seats is excluded by the provisions of notes (General Explanatory Notes) to Section XVII, therefore, clause (ii) is not fulfilled. Consequently, the vehicle seats will not be covered under heading 8708. In view of the above unambiguous provisions for classification, we are of the considered opinion that vehicle seats will not fall under 8708 whereas, the same is correctly classifiable under 9401. Hence, part of seats which is undisputed in tire present case is correctly classifiable under CETH 9401. 6.10. Based on the above discussions we hold that the goods viz. 'Car seat Cushion Suspension wires' and 'Steel hooks' manufactured by the Applicant will fall under HSN 94019900 thereby attracting CGST of 9% plus SGST of 9%. 7.1. We find that the State jurisdictional Officer had placed reliance on the decision of the Andhra Pradesh Authority for Advance Rulings (AAR), in the case of M/s. Saddles International Automotive & Aviation Interiors Private Limited. We observe that the goods in question in the said case law are 'ca....