In re Shiroki Technico India Pvt. Ltd. (GST AAR Gujarat)
We find that the ‘seat adjuster’ merely helps in the adjustment of the seat i.e. moving it back and forth as per requirement/convenience and merely improves the efficiency and convenience of the seat but does not form a part of the seat. Even while looking at the function of the ‘seat adjustor’ as well as its use, it can be derived that it can be termed only as an ‘accessory’ and not a part of the ‘seat’. Even in common parlance, the ‘seat adjustor’ is not considered as a part but only as an ‘accessory’ of the seat of a motor vehicle. Thus it can be concluded that the ‘seat adjuster’ is just an ‘accessory’, which improves the efficiency and convenience of the seat. Now, since Sub-heading No.94019000 only covers parts of a seat, the ‘seat adjuster’, which is not a ‘part’ but only an ‘accessory’ of the seat, would not be covered under the said sub-heading. However, Chapter heading 8708 covers both the ‘parts’ as well as ‘accessories’. Therefore, in view of the facts mentioned above and also in light of the judgement of the Hon’ble Supreme Court referred to in the earlier paras, it can be concluded that ‘seat adjuster’, being an ‘accessory’ of the seat, does not fall under the heading 9401 but would be rightly classified under the Heading 8708 (Parts and accessories of the motor vehicles).
The product ‘seat adjuster’ manufactured and supplied by M/s. Shiroki Technico India Pvt. ltd. merits classification under Tariff item No.8708 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and is covered under Serial No.170 of Schedule-IV of Notification No.1/2017-Central Tax (Rate) dated 28.06.2017.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, (Gujarat)
BRIEF FACTS
The applicant M/s. Shiroki Technico India Pvt. ltd. vide their application for Advance Ruling has submitted that they are mainly engaged in the business of production and manufacture of seat devices, window regulators and other allied components necessary for functioning of seats and they sell the manufactured parts to seat makers who affix the parts into the seats and thereafter the seat is affixed to the motor vehicle; that the specific product which is the matter of classification in the present application is ‘seat adjuster’ which is manufactured by the applicant and have submitted a diagram of the seat adjuster. The applicant has submitted the specific functions which are performed by the ‘seat adjuster’ as under:
