TaxTMI 
TaxTMI 
2026 (6) TMI 50
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....by the Appellate Authority under Chapter XVII of the Act shall be binding only: (a) On the Appellant who had sought it in respect or 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 Appellant. 3. In terms of Section 103 (2) of the Act, this advance ruling shall be binding unless the law, facts or circumstances supporting the said Advance Ruling have changed. 4. In terms of Section: 104(1) of the Act, where the Appellate Authority finds that advance ruling pronounced by it under subsection (1) of Section 101 has been obtained by the Appellant 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 there under shall apply to the Appellant as if such advance ruling has never been made. Order under Section 101 of Central Goods and Services Tax Act, 2017/Haryana Goods and Services Tax Act, 2017. The present appeal has been preferred by M/s Nichirin Imperial Autoparts India Private Limited, Faridabad, and Haryana (herein....
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....ff entry, read with notification no. 01/2017 dated 28th June, 2017 as amended. This ruling is valid subject to the provisions under section 103(2) until and unless declared void under section 104(1) of the CGST/HGST Act 2017, as amended. 4. Prayer of Appellant 1. Delay in submission of this appeal may be condoned. 2. The ruling order given by the Haryana Advance Ruling Authority, Goods & Services Tax may be set aside with effect from the date of the order. 3. Grant of Personal Hearing. 5. Grounds of Appeals • The Appellant argued that Brake Hoses are essentially rubber hoses with fittings and should be classified under HSN 40093100& 40093200, which covers "Tubes, pipes and hoses, of vulcanized rubber other than hard rubber, with fittings," attracting a GST rate of 18%. • They contended that classification should be based on the primary material and form of the goods (rubber hoses) rather than their end-use as parts of motor vehicles. • The Appellant cited the Supreme Court case of O.K. Play (India) Ltd. v. Commissioner of Central Excise, asserting it supports classification based on commercial parlance and the ....
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....braking systems of motor vehicles. The Appellant reiterated that in view of the composition and essential character of the product, the same merits classification under Heading 4009 of the Customs Tariff, as "tubes, pipes and hoses of vulcanized rubber, with or without fittings," and not under Chapter 87 (Headings 8708 or 8714). Reliance was placed upon judicial precedents including Track Parts Corporation [1992 (57) ELT 98 (Tri.)], Mohan Plastics Industries [2002 (144) ELT 549 (Tri.)], Prag Industries [1998 (103) ELT 62 (Tri.)], and Dunlop India Ltd. [1997 (91) ELT 673 (Tri.)], all of which consistently upheld the said classification. Attention was also drawn to Section XVII Note 2(b) of the Customs Tariff Act, 1975, which expressly excludes articles of Heading 4009 from classification as parts of motor vehicles, even when exclusively used therewith. Further reliance was placed on Customs Notification No. 72/93-Cus dated 28.02.1993, which grants exemption to such goods under Chapter 40, thereby affirming their treatment as rubber articles and not as automotive parts. Accordingly, in terms of the Customs Tariff Act, 1975, read with the GST Tariff aligned thereto, the Appellant subm....
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....2025. Post this notification, the slab rates for HSN 8708 and HSN 8714 have been revised to 18%. 8.3 Before delving into the merits of the case, it is essential to look at the relevant provisions for classification under the GST regime: 8.3.1 As per Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017 (as amended): • Heading 4009 - Tubes, pipes and hoses, of vulcanized rubber other than hard rubber, with or without their fittings (for example, joints, elbows, flanges) - rate 18%. • Heading 8708 - Parts and accessories of the motor vehicles of headings 8701 to 8705 - rate 28%. (To be applied for the period prior to the implementation of Notification No. 9/2025-Central Tax (Rate) dated 22nd September 2025) • Heading 8714 - Parts and accessories of vehicles of headings 8711 to 8713 - rate 5% (To be applied for the period prior to the implementation of Notification No. 9/2025-Central Tax (Rate) dated 22nd September 2025) 8.3.2 The Customs Tariff Act, 1975 defines the scope of Chapter 87 through Section Notes of Section XVII. Note 2(b) specifies that parts and accessories suitable for use solely or principally with articles of Chap....
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.... material or in heading 84.84) and other articles of vulcanized rubber other than hard rubber (e.g. mudguard-flaps and pedal covers) (heading 40.16) (2) ....... (C) Parts and accessories covered more specifically elsewhere in the Nomemclature. Parts and accessories, even if identifiable as for the articles of this Section, are excluded if they are covered more specifically by another heading elsewhere in the Nomenclature, e.g. ......... 8.3.4 The General Rules for Interpretation (GRI) provide: * Rule 1 - Classification is determined according to the terms of the headings and any relative Section or Chapter Notes. * 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 failing to be classified as complete or finished by virtue of this Rule), presented unassembled or disassembled. * Rule 3(a) - The heading providing the most spec....
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.... relevant portion of the Notification is reproduced as under :- Effective duty for specified components and parts for manufacture of motor vehicles Notification No. 72/93-Cus. Dated 28-2-1993 In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts components and parts of motor vehicles falling within Chapter 87 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and goods specified in column (3) of the Table hereto annexed and falling under the heading Nos. of the said First Schedule, specified in the corresponding entry in column (2) of the said Table, when imported into India, for the manufacture of motor vehicles falling within Chapter 87 of the said First Schedule, from - (a) so much of the duty of Customs which is leviable thereon. ... ..... (b) ... ..... (c)... ..... (d) ... ..... TABLE SI. No. Heading No. Description of goods (1) (2) (3) 1. 40.09 Brake hoses/radiator hoses with or without fittings. 2. ... ..... ....
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....case of hardened rubber and of other goods. The description in Heading 40.09 read with sub-heading 4009.92 was more specific. The Tribunal took the view that though the hose pipes in question were cut to specific sizes and subjected to further processes and fitted with fittings, their essential character remained as hoses with fittings, designed for the purpose of conveying air, gas or liquid. It might be true that the article was designed specifically for certain machines but this would not alter its character. The Tribunal also took note of the manufacturers' catalogue which described the goods as hoses. The Tribunal also noted that Chapter Note 2(d) excluded parts made of hardened rubber only and concluded that if the intention had been to exclude parts made of vulcanised rubber, it would have been specifically mentioned in the said note. By necessary implication, parts made of vulcanised rubber of mechanical and electrical appliances, would be covered by Chapter 40. Note was also taken of the Explanatory Notes to the HSN Heading 40.09 which clarified that the heading covered tubes of vulcanised rubber whether or not cut to length. Heading No. 40.09, being more spec....
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....84.31 or 84.66, even though the hoses mentioned in that case were utilised as parts of machinery. We find that the analogy drawn by the learned J.D.R. by citing the aforesaid Judgment, would apply to the instant facts and circumstances as well, inasmuch we have found from the literature as also from the findings of the lower appellate authority, that the purpose of the hoses is to convey the pressure energy through the medium of the fluid. Therefore, the hose in question is designed for conveying the fluid. From that angle, it has specifically satisfied the description of sub-heading 4009.92. Once this description is satisfied, the Residuary sub-heading 4009.99 cannot be applied. It is well-settled that the Residuary Tariff sub-heading would apply after eliminating the specific Headings and sub-headings. Keeping in view the aforesaid discussion we reject the appeal of the appellants herein. 8.8 On going through the Notes with Section XVII, it is observed that the Parts and accessories under this Section excludes Joints, washers or the like of any material (classified according to their constituent material or in heading 84.84) or other articles of vulcanised rubber other than ha....