In re M/s Nexture Technologies Private Limited (GST AAR Maharashtra)
The issue before us is in respect of classification of goods manufactured by the applicant. namely: Plastic handle for motor vehicle doors (including lever handle); Plastic fittings for such for motor vehicle’s doors such as Bracket, Housing, Bracket housing, Gasket, Stator; and Glove box locking. All the said items, as per their submissions are manufactured through moulding machines using PVC granules and they are used exclusively for motor vehicles. The applicant has made various arguments to drive home their contention that the goods in question are covered under Chapter 3926 of the GST Tariff as articles of plastic and not under Chapter 8708 which covers “Parts and accessories of motor vehicles of headings 8701 to 8705”. The jurisdictional office, on the other hand, has contended that the said goods will be covered under Chapter Heading 8708 of the GST Tariff.
Held by AAR
Explanatory Note to 8302 lists ‘door handle’ for automobiles as includible under heading 8302 even if they are designed for use in automobiles. ‘Door handle’ thus will be gorized as part of general use as per Note 2 to Section XV and hence will be classified according to the constituent material. In the instant case as the door handle is made of plastic will merit classification under the heading 3926.
Brackets suitable for automobiles find mention in the explanatory note (C) under heading 8302. Similarly, Housing and Bracket Housing are covered under sub-heading 8302 30 under the description ‘mountings and fittings’. Thus Brackets, Housing and Bracket Housing will be categorized as part of general use as per Note 2 to Section XV and hence will be classified according to their constituent material. In the instant case as the Brackets, Housing and Bracket Housing are made of plastic, they will merit classification under the heading 3926.
Washers are mentioned in the heading text of 7318. The item gasket is similar to washer both being placed between two objects where the former is placed between two objects to prevent friction and the latter to prevent leakage. Therefore washers and gaskets will be categorized as part of general use as per Note 2 to Section XV and hence will be classified according to the constituent material. In the instant case as the washers and gaskets are made of plastic, they will merit classification under the heading 3926.
The item Stator is a part of an automobile lock. As the Automobile locks are specifically mentioned in the heading 8301.20, the stator being its part merits classification under 8301.60 (parts). Therefore stators will be categorized as part of general use as per Note 2 to Section XV and hence will be classified according to the constituent material. In the instant case as the stators are made of plastic, they will merit classification under the heading 3926.
Similarly Glove box locking is also a lock of an automobile of heading 8301. Therefore will be categorized as part of general use as per Note 2 to Section XV and hence will be classified according to the constituent material. In the instant case as the ‘Glove box locking’ are made of plastic, they will merit classification under the heading 3926.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, MAHARASHTRA
The present application has been filed under section 97 of the Central Goods and Service Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act” by M/s Nexture Technologies Private Limited, the applicant, seeking an advance ruling in respect of the following questions.
Determining classification and applicable rate of goods and services tax for the following products:
(i) Door-handle of motor vehicle;
(ii) Fittings made of plastic for motor vehicle’s doors such as bracket, housing, bracket housing, stator, gasket; and
(iii) Glove box locking.
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, the expression `GST Act’ would mean CGST Act and MGST Act.
2. FACTS AND CONTENTION — AS PER THE APPLICANT
The submissions, as reproduced verbatim, could be seen thus-
STATEMENT OF RELEVANT FACTS HAVING A BEARING ON THE QUESTION (S) RAISED
1. M/s Nexture Technologies Private Limited, situated at Gat No. 102, Milkat No 623/2 Ambethan, Chakan Tal, Khed Chakan, Pune, Maharashtra-410501 (“Applicant’) is registered with jurisdictional authorities vide GSTIN 27AADCV8711DIZE and is, inter alia engaged in manufacture and supply of following goods (‘impugned goods’):
