In re Dyna Automation Private Limited (GST AAR Gujarat)
What is the classification for Hybrid Hrdraulic Servo System which is prepared by assembling various parts and is used as part in different type of machines and what will be the applicable tax rate on Hybrid Hrdeaulic Servo System?
During the personal hearing, the applicant was requested to submit the usages of the product viz. Hybrid Hydraulic Servo System in the machinery and catalogue of the said product. The applicant has submitted the catalogue of the product, wherein design and scientific parameter of manufacture of the product is given. However, they did not mention the usage of the said product in the different type of machines or class of machines. Further, it is seen that applicant in the application has submitted that, “Hybrid Hydraulic Servo System” as such Servo System or Drive give right solution for Servo pump control, providing precise pressure and flow control and avoiding the energy waste thus creating added value for customers in terms of energy efficiency and higher mould quality”. Hence, it appears that the product does not have any individual functions or it can be stated that the said product cannot perform itself which is the prime condition for classification under Heading 8479 of Custom Tariff Act, 1965. Therefore, the said product cannot be classified in the Chapter heading of 8479 of Customs Tariff Act, 1975.
In view of the above discussion, we rule that the product viz. Hybrid Hydraulic Servo System” merits classification in terms of Note 2 of Section XVI of the Customs Tariff Act, 1975 (CTA, 1975) and General Note of Parts of Section XVI of Harmonised System of Nomenclature. Accordingly, the rate of GST of the said product would be determined according to the classification of the product.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, GUJARAT
M/s. Dyna Automation Private Limited, Block-A-1501, Mondeal Heights, Nr. Hotel Novotel, S.G. Highway, Ahmedabad, Gujarat having a GSTIN: 24AAACD5318D1Z8, is a company filed an application for Advance Ruling under Section 97 of CGST Act, 2017 and Section 97 of the GGST Act, 2017 in FORM GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the SGST Act.
2. M/s. Dyna Automation Private Limited an applicant intends to assemble or supply Hybrid Hydraulic Servo System. Hybrid Hydraulic Servo System is used as part of Plastic Injection moulding machine or rubber injection moulding machine or as machine tools in hydraulic press or in compression moulding press or in deep drawing press or as a part of other machines. Hybrid Hydraulic Servo System is prepared by assembling or joining some or all of these items following items or some more items, where required. HSN codes of usually used in preparing Hybrid Hydraulic Servo System is given as under for reference :
