The Tamil Nadu Authority of Advance Ruling (AAR) ruled on the classification of Tank and Tank Parts.
The applicant, M/s. Heavy Vehicles Factory, HVF Estate, Avadi is a Central Government Department coming under the Ordnance Factory Board, Ministry of Defense, and Government of India and is engaged in the manufacturing of Tank and Tank Parts. They are registered under GST.
The applicant sought advance ruling on the issue whether Tank and all Tank parts supplied by the applicant is considered under HSN code “87100000 Tank and other armored fighting vehicles, motorized, whether or not fitted with weapons and parts of such vehicles”; whether parts manufactured specifically by the applicant for TANK shall be considered under 87100000; and whether parts and accessories supplied by their vendor specifically manufactured for tank parts and the same are not supplied to any other company will come under the HSN 87100000.
The Authority consists of members Manasa Gangotri Kata and Thiru Kurinji Selvan V.S ruled that tank is classified under CTH 8710 0000 while parts which satisfy the essential conditions i.e., they must be identifiable as being suitable for use solely or principally with Tanks and must not be excluded by the provisions of the Notes to Section XVII and must not be more specifically included in elsewhere in the Nomenclature are only to be classified as ‘Parts’ under CTH 8710 0000.
“Retainer Steel, Valve Assembly, Casing Assembly, Hydraulic items (all types), Mandrel assembly, Nozzle Assembly, Plate assembly, Panel assembly, Support Assembly, and Sleeve Assembly are classifiable as parts under CTH 8710 0000,” AAR said.
“Dowel Pin, Gasket Assembly, Stiffener, Clip Assembly, Connector Assembly, Needle Bearing and Planet Pinion are not classifiable under CTH 8710 000,” AAR clarified.