Classification of Goods — Applicant seeking an advance ruling in respect of the following question.

a) What is the correct classification of ‘Geared Motor’ supplied by the applicant?

The product ‘Geared Motors’ is a combination of gear box and electric motors. Vide Notification No. 1/2017 C.T. (Rate) dated June, 28, 2017, tariff rates have been notified for the purpose of levy and collection of GST which has classified goods into 4 digit codes as per HSN. In the said Notification it has been specified that for the purpose of classification of goods, the section notes, chapter notes and the General Explanatory notes mentioned under Customs Tariff Act, 1975 would apply to classification of goods under the GST Act. Therefore the classification of the product is to be decided in terms of HSN.

Held that— Jurisdictional officer submits that Geared Motor is a machine consisting of two individual components interconnected. His view is that electrical motors when attached to Gear Box will no longer remain an electrical motor but a geared motor with altogether a different function that is transmission of mechanical power and speed from one shaft to another. Though the contention of the jurisdictional officer appears convincing, in view of the exclusion note under chapter heading 8483 and inclusive note to 8501, it would be against the scheme of HSN to agree with the jurisdictional officer’s view.

“Geared Motors” supplied by the applicants fall under Tariff Heading 8501.—Premium Transmission Private Limited, In Re…. [2018] 07 TAXLOK.COM 104 (AAR-Maharashtra)