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2019 (2) TMI 1908 - AUTHORITY FOR ADVANCE RULING, UTTAR PRADESHClassification of imported goods - airsprings - whether classifiable under HSN Heading 8607 (i.e. parts of coach work of railway running stock) and thus covered under Entry No. 241 of Schedule-I of the GST rate notifications or otherwise? - applicable rate of tax under GST. Whether airsprings imported by the applicant are classifiable under HSN Heading 8607? - HELD THAT:- As per specification provided “In air suspension system, properties of air are used for cushioning effect. Enclosed pressurized air in a rubber below is called airsprings.” Therefore, as per the submission, technical specifications and characteristics mentioned by the party in respect of airspring it appears that the goods in question are air below made of rubber to be used in spring - The jurisdictional AC, CGST Div-II, Noida also submitted that the party’s assumption is not acceptable as the disputed goods are made of rubber and the articles of vulcanized rubber are excluded from Chapter 86 as per Section Note 2(a) to Section XVII. After considering the submissions made by the applicant and jurisdictional office it is observed that it is not appropriate to classify the goods in question under the Heading 8607. Applicable rate of GST - HELD THAT:- As the answer to the first question is in negative, second question cannot be considered. Scope of Advance Ruling application - HELD THAT:- The question is out of the purview of the mandate of the Advance Ruling u/s. 95(a) which provides that :- “advance ruling” means a decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of Section 97 or sub-section (1) of Section 100, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. Correct classification of goods - applicable rate of tax under GST Notification - HELD THAT:- The classification of the goods in question shall be the same as classified under the Customs Tariff Act, 1975 and shall be interpreted in terms of the Customs Tariff Act, 1975 for classifying any goods under the Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017. Since, the goods in question is classified under Chapter Heading 4016 95 90 under the Customs Tariff, it has to be appropriately classified under the same chapter i.e. 4016 for levying of tax under GST not under the Chapter Heading 8607 - Further, as per specification provided by the applicant “In air suspension system, properties of air are used for cushioning effect. Enclosed pressurized air in a rubber below is called airspring.” Therefore, as per the submission, technical specifications and characteristics mentioned by the party in respect of airspring it appears that the disputed articles are air below made of rubber to be used in airspring. Furthermore, as per the specification “requirement for emergency rubber springs used in airsprings” : The emergency rubber bumper used in the airspring should be manufactured from natural rubber suitably compounded to conform to the requirements stipulated in STR (Schedule of Technical Requirements). Thus, the process of making compounded rubber is none other than vulcanized rubber. Vulcanization makes rubber much stronger, more flexible, and more resistant to heat and other environmental conditions - the goods in question are made of rubber and the articles of vulcanized rubber which are excluded from Chapter 86 as per Section Note 2(a) to Section XVII, the party’s assumption is not acceptable and the correct classification of the airsprings would be 4016 95 90 and rate as per the Notification No. 1/2017-Central Tax (Rate) will be 18%. Scope of Advance Ruling application - Whether the applicant can also be eligible for classifying imported goods under HSN Heading 8607 like its competitors? - HELD THAT:- It is again out of the purview of the mandate of the Advance Ruling u/s. 95(a) which provides that “advance ruling” means a decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of Section 97 or sub-section (1) of Section 100, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant.
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