In re A Raymond Fasteners India Pvt. Ltd (GST AAR Maharashtra)
Q. Whether Threaded metal nuts which function same as standard nut, merits classification under the Tariff item 7318 16 00 & not under Tariff item 8708 99 00?
A. In view of the discussions made above, Threaded metal nuts merits classification under the Tariff item 7318 16 00.
AAAR order- Metal Nuts with & without metrical threading falls under HSN 87089900
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING,MAHARASHTRA
PROCEEDINGS
(Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under Section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act” respectively ] by M/s. A Raymond Fasteners India Pvt. Ltd, the applicant, seeking an advance ruling in respect of the following questions.
A.1 Whether Threaded metal nuts which function same as standard nut, merits classification under the Tariff item 7318 16 00 and not under Tariff item 8708 99 00?
A.2 Whether Plastic rivets not only being capable of being used in the fitment of trims on the body of a motor vehicle but in other industries for similar functionality, merits classification under Tariff item 3926 90 99 and not under Tariff item 8708 99 00?
A.3 Whether Quick Adapter not only capable of being used to connect pipes and tubes in the interior of a motor vehicle, but also for similar functionality in other industries, merit classification under the Tariff item 3917 40 00 and not under Tariff item 8708 99 00?
A4. Whether Plastic pipe clips merits classification under the Tariff item 3926 90 99 and not under the Tariff item 8708 99 00?
A5. Whether Brackets and Channels merits classification under Tariff item 8708 99 00 despite being “parts of general use ” made of plastic, and not under Chapter 39 of the First Schedule?
A6 Whether Non-Return Valve merits classification under Tariff item 8481 30 00 as it is capable of being used in the internal liquid lines of various machineries and equipment, and not under Tariff item 8708 99 00?
A7 Whether Metal U Clips merits classification under the Tariff item 7326 90 99 as it is not only capable of being used in the interior or exterior of a motor vehicle to join panels but in other machineries and equipment as well, and not under the Tariff entry 8708 99 00?
A.8 Whether Fasteners and Spoilers merits classification under Tariff item 8708 29 00 which pertains to parts and accessories of the body of a motor vehicle and thus provides the more specific description of the Fasteners and Spoilers, in comparison to Tariff entry 8708 99 00, which pertains to the residua! entry under Heading 8708?
A.9 Whether Bracket merits classification under Tariff item 8708 99 00 and not under Tariff item 8708 29 00, which pertains to a part or accessory found on the exterior of a motor vehicle.
A.10 Whether Steel Washer merits classification under Tariff item 7318 21 00 as it is not only capable of being used in automobiles to prevent damage to plastic parts but in other industries as well, and not under Tariff item 8708 99 00?
At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to “GST Act” would mean CGST Act and MGST Act.
2. FACTS AND CONTENTION – AS PER THE APPLICANT
Submissions made by M/s A Raymond Fasteners India Pvt. Ltd., (Applicant) is as under:
2.1 Applicant is involved in developing and manufacturing industrial clips and fasteners, prototyping assembly systems, etc. (referred to as “the Products”), which are used by their customers in the manufacture of automobiles, engineering goods, etc.
2.2 Supply of the Products by the Applicant qualifies as a ‘supply’ in terms of the CGST Act, 2017 and is liable to GST.
2.3 The said Products are to be classified in terms of Notification No. 1/ 2017 – C.T. (Rate) dated 28th June, 2017 which is the Notification for payment of applicable CGST, and corresponding Notifications of MGST and IGST.
2.4 Explanation (iii) and (iv) of the Classification Notification establishes a link between the Classification Notification and Customs Tariff Act, 1975 (“CTA”) and in terms of the same, classification of goods in the GST regime is to be done in tandem with the CTA, and the rules for interpretation of the First Schedule of the CTA, along with the Section Notes. Chapter Notes and General Explanatory Notes would also be applicable to classification of goods post the introduction of GST.
2.5 The applicant has stated that certain Section Notes and Sections of the CTA are relevant in this case and have reproduced Section Note 2 and 3 to Section XVII and Section Note 2 to Section XV.
2.6 Applicant has also submitted that, to determine the correct classification of a product, it is necessary to consider the General Rules for Interpretation in addition to the Section Notes and Chapter Notes of First Schedule and they have reproduced the provisions of Rule 3(a) of the General Rules for interpretation.
2.7 Applicant has further discussed all the products, classification which is required by them. The products discussed by them are : Metal Nuts with Metrical Thread, Metal Nuts without Metrical Thread and Metal Spring Nuts ; Plastic Rivets ; Adaptor for plastic pipe ; Plastic Pipe Clips ; Plastic Brackets, Plastic Cable Channels ; Non – Return Valve ; Metal U Clips ; Moulding Fasteners, Spoiler Lips ; Bracket (Metal Assemblies) and Stainless Steel Washer. Applicant has also presented a table showing the likely classifications for each product mentioned above as under:-
