Page 160 - GSTL_6th August 2020_Vol 39_Part 1

86 GST LAW TIMES [ Vol. 39
4. The applicant was extended another hearing and heard on 25-2-2019.
S/Shri. H.S. Manoharan, Auditor and A. Kannan, Junior Works Manager of the
Applicant Company appeared for the hearing. The representatives stated that
some parts of tanks are classifiable under Chapter 87 only and some of these
parts are of general use. They furnished the decision of Hon’ble Supreme Court
in the case of Commissioner of Central Excise v. BHEL. They have relied on the de-
cision of Hon’ble Supreme Court in the case of Commissioner of Central Excise v.
BHEL [[2018] 90 taxmann.com 297 (SC) = 2018 (10) G.S.T.L. 3 (S.C.)] wherein the
Apex Court has held that
“7………we are of the view that the Primary Authority as well as the First
Appellate Authority was perfectly justified in coming to the conclusion that
the components of the boilers cleared as parts but essential to put into op-
eration the boilers, would be classifiable under sub-heading 8402.10 and not
as claimed by Revenue under sub-heading 8402.90……..”
The above decision is on the question ‘whether the essential components/parts
of a boiler cleared by the assessee would attract duty under sub-heading
‘8402.10-All goods other than parts’ or ‘8402.90-Parts’. The Primary Authority
and the First Appellate authority relying on the expert opinion of the Technical
Adviser (Boilers), Ministry of Commerce and Industry dated 12-9-2003 and HSN
note Part V under Section XVI concluded that such components which are essen-
tial to classify the boiler as a machine, even if transported as components, must
be understood to have been transported as a complete machine, therefore levy of
duty should be under sub-heading 8402.10 and not sub-heading 8402.90. They
stated that they will submit technical specifications and Purchase Order and
purpose of each part in 2 weeks time. The State Authority appeared and submit-
ted that parts of general use cannot be classified under Chapter 87. Classification
will depend on each part which requires knowledge of their technical nature.
4.1 HVF vide Letter No. : HVF/MC/Adv.Ruling/2018-19, dated 26-3-
2019, furnished the details regarding the Nomenclature, Technical Specifications,
Drawings, Material, Usage on Final Product (Armoured Vehicle) in a Tabular
form. They further stated that the hard/softcopies of technical drawings could
not be shared as HVF is Defense Establishment manufacturing Armoured Vehi-
cles for Indian Army which is coming under Official Secrets Act, 1923 and that
their representatives will bring the hard copies of drawings, during the hearing
for clarifying the technical details.
5. The applicant was heard on 9-4-2019. S/Shri H.S. Manoharan, Audi-
tor and A. Kannan, Junior Works Manager of the Applicant Company appeared
for the hearing. They stated that some of the items are being consumed but other
are actually being supplied to their buyers as Spares and Parts. For those items
which are being sold as such, they stated that they will give detailed description,
usage, purpose in the tank, photograph, material it is made of and supply invoic-
es for parts within 1 week after which another hearing will be held.
6. The Applicant did not furnish the documents/details as undertook
by them during the hearing held on 9-4-2019. However, in the interest of natural
justice, a final opportunity was extended to HVF to appear with the required de-
tails on 21-5-2019. S/Shri H.S. Manoharan, Auditor and A. Kannan, Junior Works
Manager of the Applicant Company appeared for the hearing. They submitted
details of 17 products that they either manufacture or trade, being spare parts for
use in tank model T-90 & T-72. Some parts called as special tools & accessories
are part of maintenance Kit of Tank. The others are spares for replacement of
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