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2019 (9) TMI 1047 - AAR - GSTClassification of goods - rate of tax - manufacture of locomotive spares in accordance with the drawings and specifications of the railway authority - whether classified under heading 8607 of the First Schedule to the Customs Tariff Act, 1975 - HELD THAT:- The Applicant has supplied the goods to the railways. It appears from the scrutiny of the list of the goods manufactured and the relevant purchase orders that they are components of railway locomotives. However, Notes 2 and 3 of Section XVII, which includes Chapters 86 to 89, prohibits classification of a few articles as ‘parts’ or ‘accessories’ under these Chapters. Therefore, components of railway locomotives should be classified under heading 8607 subject to the provisions of Notes 2 and 3 of Section XVII. The composite goods manufactured by the Applicant that are used primarily as parts of railway locomotives are to be classified under heading 8607 and taxable @ 5% GST with no refund of the unutilized input tax credit. The same classification will apply to the Applicant’s other supplies to the railways if they are used primarily as parts of railway locomotives, provided they are not excluded by Note 2 of Section XVII. Supplies other than the above two categories, if any, shall not be classified under heading 8607.
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