TMI Blog2018 (12) TMI 1277X X X X Extracts X X X X X X X X Extracts X X X X ..... Twin Pipe Air Brake Systems - Twin Pipe Air Brake System is classifiable under Tariff Head 8607 21 00 [Parts of Railway.. ..Air Brakes and part thereof] which is taxable @ 5% under Serial No. 241 of Schedule I of Notification No. 01/2017 – CT (Rate) dated 28/06/2017 with no benefit of refund of the unutilized input tax credit (as per TRU Clarification issued under F.No.354/1/2018-TRU dated 25/01/2018). Ruling:- The Applicant’s contract for retro-fitment of Twin Pipe Air Brake System on Railway Wagons is to be treated as Composite Supply, where the Twin Pipe Air Brake System is the Principal Supply Twin Pipe Air Brake System is classifiable under Tariff Head 8607 21 00 and is taxable @ 5% [in terms of Serial No. 241 of Schedule I of No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Railway Technical Bulletin. The materials will be supplied by the Applicant as per the RDSO specifications, and shall be subject to inspection by RDSO / RITES The Actual fitment and testing shall be made at the wagon workshop with manpower, tools, spares and machinery provided by the Applicant. The Contractee will, however, provide some equipment and electricity, free of cost. The work shall be executed as per specifications / drawings of the RDSO. Nominated officers of the Contractee shall do on-site inspection of fabrication and assembly at various stages of the work in progress and also the final inspection of the complete wagon before issuance of the completion/inspection certificate for each wagon. The Applicant shall pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... installation of the same cannot be covered under Section 2(119) of the GST Act, as works contract . 5. Again, the Contractee makes payment for completed wagons on a monthly basis. Failure to meet the monthly target for turning out completed wagons is liable to attract penalty. No payment is made separately for the supply of goods. Also, the provision for on account payment based on progress of work indicates that the supply of goods is inseparably linked with the supply of service. Mere delivery of the Twin Pipe Air Brake Systems is not sufficient discharge of contractual obligation. Work is measured based on its assembling and fitting on the wagon. In fact, the contract is not only for supply of the air brake system, but also for its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able at the rate applicable for supply of Twin Pipe Air Brake Systems. 8. Twin Pipe Air Brake System is classifiable under Tariff Head 8607 21 00 [Parts of Railway....Air Brakes and part thereof] which is taxable @ 5% under Serial No. 241 of Schedule I of Notification No. 01/2017 CT (Rate) dated 28/06/2017 with no benefit of refund of the unutilized input tax credit (as per TRU Clarification issued under F.No.354/1/2018-TRU dated 25/01/2018). In view of the foregoing we rule as under RULING The Applicant s contract for retro-fitment of Twin Pipe Air Brake System on Railway Wagons is to be treated as Composite Supply, where the Twin Pipe Air Brake System is the Principal Supply. Twin Pipe Air Brake System is classifiable u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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