The Gujarat Authority of Advance Ruling (AAR) ruled that 28% GST is applicable on manufacturing and supplying ‘seat adjuster’.
The applicant, M/s. Shiroki Technico India Pvt. ltd. 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.
The specific product which is the matter of classification is ‘seat adjuster’ which is manufactured by the applicant and has submitted a diagram of the seat adjuster.
The applicant has submitted the specific functions which are performed by the ‘seat adjuster’ namely helps the driver and co-passenger to get into the most comfortable leg position inside the car by using it to move the seat forwards and backwards as per their convenience to maintain safe posture and position while driving; tt helps in adjusting the position of the seat. Additionally, ‘seat adjuster’ contain necessary safety features to protect the occupants in case of a collision/accident.
The applicant has concluded his submission by stating that ‘seat adjuster’ rightly merits classification under Chapter 9401 at Serial No. 435A to Notification No. 1 as amended by Notification No. 41. Therefore, the said product ought to be taxable at 9% CGST and 9% GGST.
The coram consisting of Sanjay Saxena and Mohit Agarwal held that 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 and is covered under Serial No.170 of Schedule-IV of Notification No.1/2017-Central Tax (Rate) dated June 28, 2017, the product ought to be taxable at 14% CGST and 14% GGST.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. We welcome your comments at info@taxscan.in
