Tribunal says track assembly part of car seats, to attract lower tax rate
This story was originally published at 14:45 IST on 22 April 2026
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NEW DELHI – The Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal has ruled that track assembly, brake or case sub assembly, gear vertical adjuster and bar seat track lock formed part of car seats and, hence, attracted a lower tax rate. The appellate tribunal has set aside the customs department's move to classify track assembly and related things as parts and accessories of motor vehicles to attract a higher tax rate.
The appellate tribunal rejected the department's INR-550-million demand against Toyota Boshoku Device India Pvt. Ltd. Track assembly is an integral part of a complete seat and is supplied to a car seat manufacturer, helping in the upward and downward seat adjustment, said the appellate tribunal. Gear vertical adjuster is affixed in a car seat at a particular location along with brake seat lifter, it said. Bar seat track lock is used to lock the position of the seat at the required position, it added.
The appellate tribunal said that another bench of the Ahmedabad appellate tribunal had passed a similar ruling on classification of items under customs tariff items that included parts of car seats. The customs department was not justified in not following the decision of the Ahmedabad appellate tribunal in the matter. When an order is passed by a higher authority, the lower authority is bound by it, keeping in view the principles of judicial discipline, said the Delhi appellate tribunal.
While the goods and services tax rate on car seats was 18%, parts and accessories of motor vehicles attract a rate of 28%. Given the long-standing classification disputes in the automotive components space, this ruling was likely to be important for manufacturers, importers, and original equipment manufacturers across India. End
Reported by Surya Tripathi
Edited by Akul Nishant Akhoury
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