Page 122 - GSTL_16th July 2020_Vol. 38_Part 3

360 GST LAW TIMES [ Vol. 38
(1) What is tax rate of SGST and CGST under Goods and Service Tax
Act?
(2) And which HSN code will apply?
Discussion & findings
3. We have considered the submissions made by the applicant in their
application for advance ruling as well as the arguments/discussions made by
their representative during the course of personal hearing held on 19-3-2020. As
per their submission, the applicant are engaged in the business of manufacturing
different types of model fuel conversion electronic parts mainly used for convert-
ing vehicle from petrol to gas (CNG/LPG) and vice versa. They have submitted
the details of the parts manufactured by them along with their use i.e. Change
over switch, emulator, timing advance processor and pressure guage. The appli-
cant has also given the details of the materials used in the manufacture of the
above products and wants to know the HSN code of the aforementioned prod-
ucts/goods with tax rates.
4. The applicant has submitted the details of the aforementioned prod-
ucts and the uses thereof i.e. (i) Change over switch : is used to change the fuel
from petrol to CNG/LPG and vice versa. (ii) Emulator : stops or cuts off the flow
of petrol, when vehicle is running on gas and prevents the check engine light.
(iii) Timing Advance Processor is used for compromising the differences of petrol
and CNG or LPG combustion to improve the stability of engine when it is run-
ning on CNG or LPG. (iv) Pressure Guage: indicates the pressure of gas
(CNG/LPG) in the tank and also helps change over switch by indicating gas lev-
el. On reading the same, it can be seen that such products can only form parts of
such vehicles which can run alternatively both on petrol and CNG and these
parts help the engine to switch over/change the fuel from petrol to CNG/LPG
and vice versa. Examples of such vehicles would be motor cars, vans, buses etc.
which would fall under the Chapter Sub-headings 8702 to 8704 of the First
Schedule to the Customs Tariff Act, 1975 as listed below :

8702 Motor vehicles for the transport of ten or more persons, including
the driver.
8703 Motor cars and other motor vehicles principally designed for the
transport of persons (other than those of heading 8702) including
station wagons and racing cars.
8704 Motor vehicles for the transport of goods.

Further, parts and accessories of the motor vehicles of Headings 8701 to 8705 (as
per the First Schedule to the Customs Tariff Act, 1975) are listed under 8708 as
detailed below :

8708 PARTS AND ACCESSORIES OF THE MOTOR VEHICLES OF
HEADINGS 8701 TO 8705
8708 10 - Bumpers and parts thereof :
8708 10 10 --- For tractors
8708 10 90 --- Other
-- Other parts and accessories of bodies (including cabs) :

GST LAW TIMES  16th July 2020  122