TaxTMI 
TaxTMI 
2025 (1) TMI 615
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.... (a) on the applicant who 'had sought it in respect of any matter referred to in sub-section (2) of Section 97 for advance ruling. (b) on the concerned officer or the jurisdictional officer in respect of the applicant. 3. In terms of Section 103 (2) of the Act, this advance ruling shall be binding unless the law, facts or circumstances supporting the original advance ruling have changed. 4. Advance Ruling obtained by the applicant by fraud or suppression of material facts or misrepresentation of facts, shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 1.0 At the outset, we would like to make it clear that the provisions of both the Central Goods and Services Tax Act and t....
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....HSN Code 87169010 charged at 18% for both OE fitment and for aftermarket requirements. • The applicant enclosed copy of the purchase orders received from the OEM customers of Trucks & Buses and Trailer axle manufacturers evidencing the HSN code with applicable GST. The same HSN code and the same GST rate is being used while supplying the above product to aftermarket. • The applicant also provided the technical details showing key differences between the slack adjusters used in trucks & buses and in the trailers as below provided to Sl.No. Features/Technical specifications Truck & Bus applications Trailer Axle applications 1 Number of holes in the tail on the slack adjusters Only one hole is pro....
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....the Slack Adjusters for Truck & Bus applications are taxable @ 28% and Slack Adjusters for Trailer applications are taxable @ 18%. • Further submitted that there are no adjudication proceedings pending or decided against the taxpayer relating to the questions raised in the application for advance ruling. 5. Comments offered by Joint Commissioner, Chennai North Commissionerate Joint Commissioner, Chennai North Commissionerate have submitted that there are no proceedings pending against M/s. Madras Engineering Industries Private Limited. • Further, it is observed from the technical specification/details provided by the applicant that the slack adjusters supplied to the trucks and buses is distinct when compared....
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....trailers axle installation which has three holes and used additional return spring for faster return of brakes. These types of slack adjusters are charged at 18%. AR requested AAR to clarify and uniformity in the classification of 'slack adjusters' used in trucks & buses and trailers. 7. DISCUSSION AND FINDINGS 7.1. The applicant is in the business of manufacturing and supplying 'Slack Adjusters' used in the braking system of Buses, Trucks and Trailers. Slack Adjuster is a part of a vehicle braking system and hence is an essential safety critical part of the vehicle. Slack adjusters are connected to the brake chamber push rod and S-cam Shaft to convert lateral movement of brake chamber pushrod to rotational movement an....
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....cks and Trailers). However, applicant is seeking advance ruling for clarity and uniformity in the classification with regard to rate of tax in each case. 7.4. In order to arrive at an appropriate classification of the item used in the motor vehicle, it is important to refer to the tariff classification as issued by the CBIC read with its schedules, guided by interpretative rules, Section notes, Chapter Notes supported by the Explanatory Notes to the HSN. The basic principle provided in Rulel is that the classification shall be determined according to the terms of the heading, Section and Chapter Notes. Further, Rule 3(a) of these rules provides that heading which gives most specific description shall be preferred to headings providing a ....
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....eeled vehicle attached to another powered vehicle for movement of goods and cargo. HSN 8716 exclusively deals with Trailers, Semi-trailers and other vehicles not mechanically propelled. As the HSN provides for a separate classification for trailers, semi-trailers and other such vehicles, the slack adjusters used exclusively in the braking system of trailers are rightly classified as 'Parts and accessories of trailers' under 87169010. 7.8. The applicant have informed that at present they are classifying the slack adjusters as per the Purchase order from the respective groups of OEM customers and raised concern that they have received information that the trade and other manufacturers of slack adjusters are classifying the product ....