2022(11)LCX0207(AAR)

Gurmat Impex & Shipping Services

decided on 03-11-2022

CUSTOMS AUTHORITY FOR ADVANCE RULINGS

NEW CUSTOM HOUSE, BALLARD ESTATE, MUMBAI - 400 001

E-MAIL: cus-advrulings.mum@gov.in

The 03^rd of November, 2022
Ruling No. CAAR/Mum/ARC/38/2022
In
Application No. CAAR/CUS/APPL/57/2022-O/o Commr-CAAR-MUMBAI

Ruling

    M/s. Gurmat Impex & Shipping Services (hereinafter referred to as 'applicant') has filed the present advance ruling application. The applicant is stated to be engaged in the manufacture of office furniture, namely, office chairs 'and workstations and has IEC No. 0311044841. The applicant intends to import Gas Lift/Gas Springs (subject item) for the manufacture of chairs. The question posed by the applicant for advance ruling is for identification of the correct classification of the subject item.

2. The applicant has stated that they intend to import a Gas Lift for Office Chairs having a normal size of 270-300 mm. The goods are also known in industry parlance by various other names such as GAS Springs/ Hardware lifter (fittings) or Hardware fitting accessories (Lifter)/ Iron Gas Pump/ M.S. Chair Gas lift or Iron Chair Gas Lifter. It is contended that the subject goods are classified under two different headings namely a). CTH 83024900 which covers base metal mountings, fittings and similar articles suitable for furniture; and b) CTH 94019000 as Parts of  Seats to be placed on the floor or ground (Furniture). Therefore, the need to seek the correct classification for the subject goods.

3. The applicant has submitted that an office chair (Furniture) designed to be placed on the floor or ground is classifiable as a seat under Chapter 9401. It normally consists of the following components:

a. Arm and back assembly- Lumbar
b. Castor assembly
c. Seat assembly with swivel/ revolving movement
d. Gas lift
e. Base in a star shape

    The swivel mechanism permits the revolving of the chair and also locking/unlocking, while the gas lift provides only height adjustment, including locking. The gas lift's top end is inserted in the swivel mechanism located at the base of the seat, while the bottom end of the gas lift is inserted in the chair base (normally star shape horizontal metal legs). The image of the subject item and its components are enclosed (Image 1). The gas lift is thus not a part of general use. The General Rules of Interpretation (hereinafter referred to as GRI) of Import Tariff section 3 specifies that when goods prima- facie are classifiable under two or more headings due to any reason, then classification shall be effected as follows: a) The heading which provides the most specific description shall be preferred to headings providing a more general description. Seats with both swivel mechanism and variable height adjustments are covered under 94013000, hence parts of seats namely variable height adjustment should be considered more appropriately classified under 94019000, and not 83024900 which is a general description.

Image 1

4. In their CAAR - I form the applicant has declared that they would be importing the subject goods through the port of Nhava-Sheva. Accordingly, comments from the jurisdictional Principal Commissioner/Commissioner of Customs, Nhava Sheva V, Customs Zone II Mumbai, were invited in respect of the application for advance ruling. However, no communication has been received from the jurisdictional Principal Commissioner/Commissioner of Customs.

5. The personal hearing in the matter was held on 22.09.2022 wherein Shri Rajesh Gosalia, Proprietor and Shri. Harsh Gosalia, Office Assistant were present for the applicant. However, no one appeared on behalf of the Principal Commissioner/Commissioner of Customs, Zone H Mumbai, Nhava Sheva V. Above stated representatives presented their case for classification of the product proposed to be imported and invited attention to rulings of CAAR, Mumbai — CAAR/Mum/ARC/33/2021- dtd. 18.08.2021. In view of the prevailing practice of classification of products under two different CTHs, they requested to issue a ruling on correct classification.

6. I have considered all the materials placed before me in respect of the subject item for which an advance ruling has been sought. I have gone through the written submissions as well as the points made during the personal hearing. In the absence of comments on the subject from the jurisdictional authority on the impugned subject item, I proceed to pronounce a ruling on the issue. The applicant intends to import Gas Lift/Gas Springs (Subject goods) for the manufacture of chairs. From the submitted information and images, it appears that the subject goods is one of the parts to be used in the manufacture of chairs/swivel chairs which have the functionality of height adjustment. In this context the applicant has submitted that currently the imports of the said subject goods are being carried out under the following two different CTHs: a) CTH 83024900 which covers base metal mountings, fittings and similar articles suitable for furniture; and b) CTH 94019000 as Parts of Seats to be placed on the floor or ground (Furniture). In view of the contending entries being mentioned, it is necessary to examine the contending chapters of the tariff for the subject goods.

6.1 Chapter 83 covers miscellaneous articles of base metal and chapter notes 2 provides that: "2. For the purposes of heading 8302, the word "castors" means those having a diameter (including, where appropriate, tyres) not exceeding 75 mm, or those having a diameter (including, where appropriate, tyres) exceeding 75 mm provided that the width of the wheel or tyre fitted thereto is less than 30 mm". Heading 8302 includes within its ambit base metal mountings, fittings and similar articles suitable for furniture, doors, staircases, windows, blinds, coachwork, saddlery, trunks, chests, caskets or the like; base metal hat-racks, hat-pegs, brackets and similar fixtures; castors with mountings of base metal; automatic door closers of base metal.

8302 10 - Hinges:
8302 10 10 --- Of steel
8302 10 20 --- Of brass
8302 10 90 -- Other
8302 20 00 - Castors
8302 30 - Other mountings, fittings and similar articles suitable for motor vehicles:
8302 30 10 --- Curve drive stakes
8302 30 90 --- Other
- Other mountings, fittings and similar articles:
8302 41 -- Suitable for buildings:
8302 41 10 --- Fittings for doors and windows
8302 41 20 --- Tower bolts
8302 41 90 --- Other
8302 42 00 -- Other, suitable for furniture
8302 49 00 — Other

    As per the Explanatory notes this heading covers general purpose classes of base metal accessory fittings and mountings, such as are used largely on furniture, doors, windows, coachwork, etc. Goods within such general classes remain in this heading even if they are designed for particular uses (e.g., door handles or hinges for automobiles). The heading does not, however, extend to goods forming an essential part of the structure of the article, such as window frames or swivel devices for revolving chairs. Therefore, the subject item does not merit classification under Heading 8302.

6.2 Chapter 94 covers within its ambit Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishing; luminaires and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated building. For the purposes of this Chapter, the term "furniture" means: Any "movable" articles (not included under other more specific headings of the Nomenclature), which have the essential characteristic that they are constructed for placing on the floor or ground, and which are used, mainly with a utilitarian purpose, to equip private dwellings, hotels, theatres, cinemas, offices, churches, schools, cafes, restaurants, laboratories, hospitals, dentists' surgeries, etc.,

    Heading 9401 covers seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof;

9401 10 00 - Seats of a kind used for aircraft
9401 20 00 - Seats of a kind used for motor vehicles
- Swivel seats with variable height adjustment:
9401 31 00 -- Of wood
9401 39 00 -- Other
- Other seats, with metal frames:
9401 71 00 -- Upholstered
9401 79 00 -- Other
9401 80 00 - Other seats
- Parts:
9401 91 00 -- Of wood
9401 99 00 — Other

    Further, Chapter Note 2 provides as follows:

    The articles (other than parts) referred to in headings 9401 to 9403 are to be classified in those headings only if they are designed for placing on the floor or ground. The following are, however, to be classified in the above-mentioned headings even if they are designed to be hung, to be fixed to the wall or to stand one on the other:

(a) Cupboards, bookcases, other shelved furniture (including single shelves presented with
supports for fixing them to the wall) and unit furniture;
(b) seats and beds.

    Therefore, seats are classifiable under this chapter even if they are not designed for placing on the floor or ground.

6.3 Elaborating further on 'parts', the explanatory notes state that this Chapter only covers parts, whether or not in the rough, of the goods of headings 94.01 to 94.03 and 94.05, when identifiable by their shape or other specific features as parts designed solely or principally for an article of those headings. They are classified in this Chapter when not more specifically covered elsewhere. The swivel mechanism of the subject item permits the revolving of the chair and also locking/unlocking, while the gas lift provides height adjustment, including locking. The gas lift's top end is inserted in the swivel mechanism located at the base of the seat, while the bottom end of the gas lift is inserted in the chair base (normally star-shaped horizontal metal legs). The image as provided by the applicant clearly indicates the intended use of the subject item as a connector between the seat and base while providing height adjustment and a locking/unlocking mechanism. The subject item for which advance ruling has been sought, its characteristics, functionality and utility etc., as discussed hereinabove clearly indicate it to be a part used for the manufacture of a swivel chair. As the subject goods are solely or principally to be used with seats and in the absence of any specific entry elsewhere, they are classifiable as parts under this chapter.

7. Further, GRI 3 states that "when by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to headings providing a more general description". Based on the material placed before me, there appears to be no doubt that the subject item proposed to be imported is specifically designed and meant for the manufacture/assembly of goods described as 'swivel seats with variable height adjustment' falling under the subheading 9401 3000 or 9401 3900. Considering the above and since, I have already reached the conclusion that heading 9401 is the appropriate classification for the subject item namely Gas lift, the only possible entry at the eight-digit level is 9401 9900.

8. In view of the foregoing discussions, I rule that the subject item namely Gas lift/Gas spring merits classification under sub-heading 9401 9900 of the first schedule to the Customs Tariff Act, 1975.

(Narendra V. Kulkarni)          
Customs Authority for Advance Rulings,
Mumbai                       

F.No. CAAR/CUS/APPL/57/2022-O/o Commr-CAAR-Mumbai                     Dated: 03.11.2022

This copy is certified to be a true copy of the ruling and is sent to: -

1. M/s Gurmat Impex & Shipping Services R.no. 315, 3rd Flr.,C-Wing, Antop Hill, Warehouse Complex, Vit College Road, Wadala-E, Mumbai-400037
Email: gurmatimpex@gmail.com,rajeshgosalia@htshah.com

2. The Commissioner of Customs (Nhava Sheva -V), Jawaharlal Nehru Customs House, Nhava Sheva, Tal Uran, District Raigad, Maharashtra — 400707 Email: commr-ns5@gov.in

3. The Customs Authority for Advance Rulings, 5^th Floor, NDMC Building, Yashwant Place, Satya Marg, Chanakyapuri, New Delhi-110021.
Email: cus-advrulings.del@gov.in

4. The Principal Chief Commissioner of Customs, Mumbai Customs Zone-I, Ballard Estate, Mumbai -400001. Email: ccu-cusmuml@nic.in

5. The Chief Commissioner(AR), Customs Excise & Service Tax Appellate Tribunal(CESTAT), West Block-2, Wing-2, R.K. Puram, New Delhi - 1 10066.
Email: cdrcestat123@gmail.com,ccar.cestat-delhi@gov.in

6. The Commissioner (Legal), CBIC Offices, Legal/CX.8A, Cell, 5^th floor, Hudco Vishala Building, C-Wing, Bhikaji Cama Place, R. K. Puram, New Delhi — 110066.
Email: anishgupta.irs@gov.in,commr.legal-cbec@nic.in

7. The Member (Customs), Central Board of Indirect Taxes, North Block, New Delhi-110001
Email: mem.cus-cbec@nic.in

8. The Webmaster, Central Boards of Indirect Taxes & Customs.
Email: webmaster.cbec@icegate.gov.in

9. Guard file.

(P. Vinitha Sekhar)           
Secretary/Additional Commissioner,   
Customs Authority for Advance Rulings,
Mumbai