AI Drafter 
TaxTMI 
TaxTMI 
2025 (5) TMI 985
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....d be mentioned as being under the "GST Act". The issue raised by M/s ALLIED CASTALLOYS INDIA PRIVATE LIMITED, AMER KH.NO.200, DESA, NEAR INDUSTRIAL AREA, KALADERA, JAIPUR-303801, Rajasthan (hereinafter "the applicant") is fit to pronounce advance ruling as they have deposited prescribed Fee under CGST Act and it falls under the ambit of the Section 97 (2) given as under: A. SUBMISSION OF THE APPLICANT(in brief) :- Brief facts of the case : • That the Applicant is working under the name and style of M/s ALLIED CASTALLOYS INDIA PRIVATE Limited which as is apparent is a Private limited Company registered under Companies Act, 1956 having its agriculture manufacturing unit in operation at Amer Kh. No 200., Desa, Near Industrial Area Kaladera, Jaipur. • That the Applicant is the holder of GST Registration and is inter-alia engaged in manufacturing of "Blades" cleared as "Spare Parts" for being used in Agricultural Machines, viz., Chaff Cutters Machine which is used for Cutting Straw used for Feeding Animals. B. INTERPRETATION AND UNDERSTANDING OF APPLICANT ON QUESTION RAISED (IN BRIEF) That from the very onset the bona fide, the Applicant is clear....
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....bsp; Other machinery: 8436 80 10 Germination plant fitted with mechanical and thermal equipment 8436 80 90 Other . Parts: 8436 91 00 Of poultry keeping machinery or poultry incubators and brooders 8436 99 00 Other 2 and 3 of the Rules for Interpretation of Customs Tariff as applicable to GST Tariff reads as under: Rule 2 (a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented; the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this Rule), presented unas....
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....or root cutters, straw cutter, etc. or for lawn movers, blades and segments of blades for harvesting or reaping machines." (v) That the Hon'ble CESTAT, NORTHERN BENCH, NEW DELHI in Commissioner of Central Excise, Delhi-lii Versus Nice Steel Industries reported in 2004 (163) E.L.T. 433 (Tri .- Del) placing reliance upon the Hon'ble Supreme Court's directions on the tariff classification of goods in the case of DUNLOP INDIA LTD. & MADRAS RUBBER FACTORY LTD. Versus UNION OF INDIA AND OTHERS reported in 1983 (13) E.L.T. 1566 (S.C.), observed that: The impugned goods Chaff Cutter Blade is a blade for agricultural machine Chaff Cutter. Such a blade is specifically covered by sub-heading 8208.40. Applying Rule 1 of the Interpretative Rules, the impugned goods are classifiable exclusively under Heading 82.08 which covers within its ambit cutting blades for agricultural, horticultural or forestry machines. It is also settled law that a specific Heading must be given preference over the general Heading. Once the Chaff Cutter Blades are specifically covered by Chapter 82, Note 2 to Section XVI cannot be invoked for classification in terms of Note 1(k) to Section XVI. The ....
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....the classification of blades under Heading 82.08 as it is mentioned therein as under: "This Heading applies to un-mounted knives or cutting blades ....... for machines or for mechanical appliance ... The Heading includes knives or cutting blades: (1) ........... (2) ........... (3) ........... (4) For Agricultural, horticultural or forestry machines, for example, blades and knives for root cutters, straw cutter, etc. or for lawn movers, blades and segments of blades for harvesting or reaping machines." Para 7 is The Chandigarh Commissionerate Trade Notice No. 27/98, relied upon by the learned Advocate, nowhere mentions that Chaff Cutter Blades fall under Heading 84.36 as it refers only to Chaff Cutter and parts thereof. In absence of Trade Notice specifically referring to the impugned goods, it cannot be claimed by the Respondents that Trade Notice classifies the Chaff Cutter Blade is classifiable under Heading 84.36 of the Tariff. Accordingly, we allow the appeal filed by Revenue. As submitted foregoing, the judgment with utmost precision has been pronounced by the Hon'ble CESTAT very categoricall....
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...."Tools" and not "Parts of Machine". In this respect reliance is place upon the case of Hadrachalam Paper Boards Ltd. Versus Collector of Customs reported in 1993 (64) E.L.T. 137 (Tribunal) wherein it was observed by the Larger Bench of the Hon'ble CESTAT, New Delhi that, "A clear reading of the write-up on chipper knives discloses that the item cannot be considered independently as a complete machinery or as a tool. The knives are essential parts of chipper and are specially made for the purpose of machinery for chipper and it is not an independent tool for general purpose. Note 1 of Chapter 98 states that the chapter is to be taken to apply to all goods which satisfy the conditions prescribed therein, even though they may be covered by a more specific heading elsewhere in the Schedule of the Tariff. The chipper knives are, therefore, classifiable under Heading 98.06." B. Whenever the intention of the Legislature is to classify an article under a particular heading and not as a part as per the "principle use test" or "suitability of use test", a specific exclusion is put in clear terms, as has been done vide Note 2 of Section XVII. Therefore, parts of Chaff Cutter Machine ar....
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....e to be classified in heading 84.09, 84.31, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29 or 85.38 as appropriate or, failing that, in heading 84.87 or 85.48. It may please be appreciated that, Note 2 (b) of Section XVI very categorically mandate that the heading, 'Other Parts', pertains to the parts which are suitable for use solely or principally with a particular kind of machine, are to be classified with such machine. Thus, the 'Blades" manufactured and cleared by the applicant with holes at the blunt edge for being fitted with Chaff Cutter Machine with screw and bolts, squarely fall in the category of "Other Parts", as being pointed out in the Note 2 (b). It would not be out of place to mention here that the items in questions are the primary cutting part of a Chaff Cutter Machine to render the same operational for its fundamental usage of cutting the straw for preparing animal stuff. Thus, in terms of Note 2 (b), the goods and question being part of Chaff Cutter Machine which is suitable solely and principally for being used in Chaff Cutter Machine, are required to be classified along with the Chaff Cutter Machine only. D. It may further be noticed that Rule 3(c)....
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....rm the demand which upon appeal by the assessing was set-aside by the Hon'ble High Court of Bombay. The Hon'ble Apex Court upheld the order of the Hon'ble High Court holding as under: Para 15 is In our view, the conclusion reached by the High Court is fully in accord with the decisions of this Court and the same is justified in law. The burden of proof is on the taxing authorities to show that the particular case or item in question, is taxable in the manner claimed by them. Mare assertion in that regard is of no avail. It has been held by this Court that there should be material to enter appropriate finding in that regard and the material may be either oral or documentary. It is for the taxing authority to lay evidence in that behalf even before the first adjudicating authority. Especially in a case as this, where the claim of the assessee is borne out by the trade inquiries received by them and also the affidavits filed by persons dealing with the subject matter, a heavy burden lay upon the revenue to disprove the said materials by adducing proper evidence. Unfortunately, no such attempt was made. As stated, the evidence led in this case conclusively....
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....et put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (b) mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (a), shall be classified as if they consisted of the material or, component which gives them their essential character, insofar as this criterion is applicable. (c) when goods cannot be classified by reference to (a) or (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration." Para 29 is Interestingly Rule 2 (a) speaks about "Article", Rule 2 (b) speaks about "material or substance" as well as "goods of a given material or substance" and Rule 3 speaks about "goods". Para 30 is In the case on hand, the claim of the assessee was that the relays manufactured by them were part of the railway signaling equipment. But all the Authorities were of the unanimous view that this product is referable ....
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....ought to be repelled by the Authorities by relying upon Note 2 (f) of Section XVII. Para 34 is Though at first blush, Note 2 (f) seems to apply to the case on hand, it may not, upon a deeper scrutiny. Para 35 is Note 3 of Section XVII reads as follows: "References in Chapters 86 to 88 to "parts" or "accessories" do not apply to parts or accessories which are not suitable for use solely or principally with the articles of those Chapters. A part or accessory which answers to a description in two or more of the headings of those Chapters is to be classified under that heading which corresponds to the principal use of that part or accessory." Para 36 is What is recognized in Note 3 can be called the "suitability for use test" or 'the user test'. While the exclusion under Note 2 (f) may be of goods which are capable of being marketed independently as electrical machinery or equipment, for use otherwise than in or as Railway signaling equipment, those parts which are suitable for use solely or principally with an article in Chapter 86 cannot be taken to a different Chapter as the same would negate the very object of g....
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....; प्रश्न का आरजीएसटी एक्ट, 2017 के शीड्यूल के अनुसार HSN 8208 के तहत "Knives and. cutting blades, for 'machines or for mechanical appliances" वर्गीकृत है। अतः करदाता द्वारा लगाई जा रही कर दर 18 प्रतिशत अधिनियमानुसार है। E. PERSONAL HEARING : In the matter, personal hearing was granted to the applicant on 06.03.2025. Mr. Rajeev Mathur (C.A.), Mr. Sanjay Khatri (Adv.) and Mr. Manoj Kedia Authorized Representative appeared for personal hearing. They' reiterated the submission already made by them. F. DISCUSSIONS AND FINDINGS 1) We have carefully examine....
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....ry incubators and brooders 8436 10 00 - Machinery for preparing animal feeding stuffs - Poultry-keeping machinery; poultry incubator, and brooders : 8436 21 00 -- Poultry incubators and brooders 8436 29 00 -- Other 8436 80 - Other machinery: 8436 80 10 --- Germination plant fitted with mechanical and thermal equipment 8436 80 90 --- Other - Parts: 8436 91 00 -- Of poultry-keeping machinery or poultry incubators and brooders 8436 99 00 -- Other 8) According to Rule 1 of the Interpretative Rules "classification shall be determined according to the terms of the heading and any relative Section or Chapter Notes". Thus, by applying Rule 1, the impugned goods merit Classification under Heading 82.08, which covers within its ambit cutting blades for agricultural, horticultural or forestry machines instead of Heading 84.36 as note 1(k) of Section XVI specifically excludes articles of Chapter 82 or 83. It is also settled law that a specific heading must be given precedence over the general Heading. Note 2 to Section XVI, which govern classification of parts of machines has been applied....