Case Law Details
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
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