Case Law Details
In re SI AIR Springs Private Limited (GST AAAR Tamilnadu)
In the case at hand, the product is not a joint, washer or the like, it is an ‘Air bellow’, a specifically designed part for use in the Motor Vehicle as a Shock absorbent and therefore, even if the part which gives the essential character of the product is made of vulcanized rubber other than hard rubber and the functionality of the product is extended by the said rubber portion as claimed by the appellant, still as per the dictum pronounced by the Apex Court referred above, the test of commercial identity and not the functionality test is relevant. The commercial identity of the product is that the product is a critical component of the air suspension and lift axle system in trucks, trailers and buses as has been stated by the appellant. It is also pertinent to note that the product is suitable for use solely or primarily with the articles of Chapter 8701 to 8705. The appellant has relied on the decision of the Apex Court in the case of Intel Design Systems (India) (P) Ltd Vs. Commr. Of Customs and Central Excise, and claimed that when the Section Note excludes, the product cannot be classified in Chapter 87. In this case the excluding note excludes ‘electrical machinery and equipment(chapter 85)’ and the items for which the classification was under dispute are goods specifically covered under CETH 8536.90, which is not the case at hand and therefore is differentiable.
The appellant has also claimed that the HSN Explanatory Notes to Section XVII specifically excludes ‘Springs’ from the scope of ‘Parts and Accessories’ under CTH 8708. The relevant note seeks to exclude ‘Parts of General use- springs (including leaf springs for vehicles) such goods of base metal fall in Chapter 73 to 76 and 78 to 81, and similar goods of Plastics fall in Chapter 39″. The product in hand is an air below the utility of which is to act as a ‘Shock absorbent’. It is not a spring classifiable under any of the Chapters mentioned, for the reason that the product is not an article of base metal or alloy of base metal. The product is made of fabric coated soft vulcanized rubber trimmed with the base plate and designed to give its full utility when used in axles of the Motor Vehicles to absorb shock and provide the required suspension and this claim is not valid
The invoice of the competing manufactures were provided but the inputs used, process undertaken, or any test reports to establish the similarities or that the receivers are the same buyers are not produced. However, the ruling extended is applicable only to the person who sought the same and on going through the submissions, the classification of the product has been extended and done so.
For the reasons discussed above, we hold that Air Springs manufactured by the appellant is classifiable under CTH 8708 as rightly held by the Lower Authority. The subject appeal is disposed of accordingly.
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