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2019 (6) TMI 1584 - AAR - GSTClassification of goods - rate of GST - Filter Elements & Air Filter Assembly as parts for Diesel Electric Locomotives for Indian Railways - classified under Tariff Heading - 8607 in GST regime or not? - HELD THAT:- The Indian Railways had placed Purchase Orders for the manufacturing of “Low mean pore size Primary & Secondary Filter Elements”, “Air Filter 975” & “MR Filter Element” by the party which they subsequently supplied to Indian Railways under the cover of invoices - After going through the Quality Assurance Plans (QAP) for low Mean Pore Size Primary & Secondary Fuel Oil Filter Elements for Diesel Electric Locomotives’ and for ‘Filter Air Dryer & MR for ALCO (American Locomotive Company) Locomotives & EMD (Electro-motive diesel) Locomotives’ as submitted by the party along with their said Advance Ruling Application, it is noticed that the said ‘Quality Assurance Plans’ were duly approved by the competent Railway Authorities. It, therefore, appears that the party had manufactured the said goods as per the specifications of Railways, which they subsequently supplied to Railways. The term “parts” or “accessories” mentioned in Chapter 86 to 88 is applicable to those “parts” or “accessories” which are solely or principally being used with the articles of those chapters. Since, the aforesaid items manufactured by the party are being principally used for railway locomotives as per aforesaid ‘Quality Assurance Plans’ duly approved by the competent Railway Authority, the same appears to be appropriately covered under Customs Tariff Heading No. 8607 as ‘Parts of railway locomotives’ - It is also pertinent to mention that in pre-GST regime, the party in their ER-1 return for the month of March, 2017, as provided by them, had mentioned the clearances of goods as ‘Parts of Railway or Tramway or Rolling Stock’ under CSH No. 8607 99 20. Applicability of tax rule under the GST Tariff/Act - HELD THAT:- On the basis of the classification of the said product, it will be leviable to appropriate rate of Goods and Services Tax under the Heading No. 8607 prescribed under Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017 issued under the Central Goods and Services Tax Act, 2017.
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