In re Delphi TVS Technologies Limited (GST AAR Tamilnadu)
Introduction: The recent ruling by the GST AAR Tamilnadu sheds light on the classification and taxation of fuel injection pump parts. M/s Delphi TVS Technologies Ltd sought clarification on the HSN codes and applicable GST rates for specific components of fuel injection pumps.
Detailed Analysis:
1. Classification Under Customs Tariff Heading (CTH): The applicant classified fuel injection pumps under Tariff Heading 84133010, discharging GST at 28%. However, the ruling focused on the classification of specific parts. The principles of Customs Tariff, including the Harmonised Commodity Description and Coding System (HSN), were invoked for interpretation.
2. Principles of Classification: The analysis delved into General Rules for Interpretation (GRI) under Customs Tariff. The key contention was whether the parts fall under Heading 8409 or 8413. Explanatory notes and GRI were crucial in determining the proper classification.
3. Note 2 to Section XVI: The ruling emphasized Note 2 to Section XVI, which guides the classification of parts. It clarified that parts specifically covered under Chapter 84 or 85 should be classified accordingly. Note 2(a), (b), and (c) were applied sequentially to arrive at the proper classification.
4. Applicability of GST Rate Entries: The analysis questioned the absence of specific rate entries for fuel injection pump parts in the IGST Goods Rate Notification. While Sl. No. 117 covered fuel injection pumps, it didn’t explicitly include their parts. The ruling argued that parts should be categorized under the residuary entry in Schedule III.
5. Reference to Precedents: Several advance rulings were referenced to support the application of the residuary entry (Sl. No. 453) of Schedule III when specific entries were lacking. Previous rulings, such as Maini Precision Products and Sivantos India, were cited for consistency.
Conclusion: The AAR Tamilnadu concluded that specific fuel injection pump parts are classifiable under CTH 84139190 and fall under the residuary entry (Si. No. 453) of Schedule III. The applicable GST rate for these parts is 18%. This ruling provides clarity for businesses dealing with fuel injection pump components, ensuring accurate classification and taxation.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, TAMILNADU
1. M/s Delphi TVS Technologies Ltd, Mannur, Thodukadu, Sriperumbudur Taluk, Tamil Nadu, Kancheepuram District 602105 (hereinafter referred to as The Applicant’), a GST Registrant with GSTIN 33AAACL1019K1ZW is under the Administrative control of Centre and is engaged in manufacture and supply o fuel injection pumps and parts thereof for automobiles.
2.1 The Applicant submitted a copy of Electronic Cash Ledger 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.
2.2 The Applicant has submitted that –
> They classify the fuel injection pumps under Tariff Heading 84133010 and discharges GST at the rate of 28% in terms of Sl. 117 of Schedule II of Notification No. 01/2017-Integrated Tax (Rate) dated 28.06.2017.
> They also supply the parts of fuel injection pumps and they are either manufactured by them or procured indigenously/imported and supplied to the customers.
> The present ruling is sought in respect of the following parts of fuel injection pumps supplied by the Applicant.
