In re Borgwarner Morse Systems India Private Limited. (GST AAR Tamil Nadu)
Whether automotive chains (i.e., silent chains used in petrol engines and roller chains used in diesel engines) manufactured by the applicant are classifiable under HSN 8409 or 7315?
“Roller chains” supplied by the applicant are classifiable under CTH 73151100 and ‘Inverted tooth chains or silent chains’ under CTH 73151290 of the First Schedule to the Customs Tariff Act, 1975 as applicable to GST as per Explanation (iii) to Notification 1/2017-Central Tax (Rate) dt 28.06.2017 and G.O. Ms No. 59, Commercial Taxes and Registration (Bl) dt 29th June 2017.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING (TAMIL NADU)
Note : Any Appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
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. BorgWarner Morse Systems India Private Limited, Administrative office at No.79, SIDCO Industrial Estate, Kakkalur, Tiruvallur-602003 (hereinafter called the Applicant or the Company) are engaged in the manufacture and sale of Automotive Chains which are used as a major component in manufacture of motor engines for motor vehicles.
The Applicant has submitted the copy of application in Form GST ARA – 01 and also submitted the copy of Challan evidencing payment of application fees of Rs.5,000/-each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. They are registered under GST with GSTIN 33AABCR8852R1ZO. They have preferred an application seeking Advance Ruling on
“Whether automotive chains (i.e., silent chains used in petrol engines and roller chains used in diesel engines) manufactured by the applicant are classifiable under HSN 8409 or 7315?”
2.1 The Applicant is engaged in manufacture and sale of following automotive chains which are used as a major component in manufacture of motor engines for motor vehicles (i.e., for both two wheelers and four wheelers).
Silent chains/ Inverted tooth chains (Used in Petrol engines) Roller chains/ Bushing (Used in Diesel engines)
These automotive chains are ‘part of internal combustion engines’ that synchronizes the rotation of the crankshaft and the camshaft(s) so that the engine’s valves could open and close at proper times. As the automotive chains manufactured by the Applicant are used in further manufacture of engines for motor vehicles, the Applicant had classified their product under following HSN code:
