In re Nichirin Imperial Autoparts India Private Limited (GST AAAR Haryana)
The Haryana Appellate Authority for Advance Ruling (AAAR) allowed the appeal filed by Nichirin Imperial Autoparts India Private Limited and set aside the ruling of the Haryana Authority for Advance Ruling (AAR) concerning the classification and GST rate applicable to “Brake Hoses” used in two-wheelers and four-wheelers. The dispute centered on whether Brake Hoses should be classified under Chapter 40 as vulcanized rubber hoses attracting GST at 18%, or under Chapter 87 as parts and accessories of motor vehicles, attracting GST at 28% for four-wheelers and 5% for two-wheelers under the rates applicable before Notification No. 9/2025-Central Tax (Rate).
The appellant manufactures and imports automotive components, including Brake Hoses. It argued that the product is essentially a vulcanized rubber hose fitted with metal connectors and should be classified under Heading 4009, covering tubes, pipes and hoses of vulcanized rubber with or without fittings. According to the appellant, classification should be determined by the product’s material composition, shape, design, and essential character rather than by its end use in motor vehicles. The appellant submitted that the product consists of approximately 70–75% vulcanized rubber and around 15% steel fittings and retains its character as a rubber hose despite being used in automotive braking systems.
