TMI Blog2019 (11) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... motive for insulation and it can also be used in other industries for insulation. Hence their primary function is as insulators and hence they are not parts of the locomotives. Thus, rate of tax on supply of Kapton Polyimide Film Adhesive Tape to Indian Railways for use in its railway locomotives shall be the rate of tax as applicable to goods covered under the heading 8546-Electrical Insulators of any material and therefore the rate is 18%. - KAR ADRG 44/2019 - - - Dated:- 17-9-2019 - SRI. HARISH DHARNIA, AND DR. RAVI PRASAD M.P. MEMBER Represented by: Sri. Sanjay M Dhariwal, Sri.G.B. Srikanth Acharya, Smt. Annapurna Kabra, Chartered Accountants ORDER UNDER SECTION 98(4) OF THE CENTRAL GOODS SERVICES TAX ACT, 2017 AND ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tems such as diesel electric hybrid vehicles and battery electric vehicles. 4. The applicant is classifying this pressure sensitive polyimide (KAPTON) film adhesive insulation tape under the heading 8546-Electrical Insulators of any material which attracts GST @ 18%. The applicant is engaged in supplying the pressure sensitive polyimide (KAPTON) film adhesive insulation tape to the Indian Railways to use as an insulators in its locomotives. There exists heading 8607 - Parts of Railway or tramway locomotives or rolling stock; such as Bogies, bissel- bogies, axles and wheels, and parts thereof which attracts GST @ 5%. The applicant contends that as their products are used in railway locomotives, they should be considered as parts and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... strued that such insulator forms part of the railway locomotives. Further, the applicant narrated that as per Rule 3(a) of the General Rules of Interpretation under Customs Tariff Act, 1975, where two or more Headings seem to apply, the one which provides the most specific description of the product in question should be used. This means that a Heading which names the actual product should be used in preference to one which only names a category to which the product could belong. In the given scenario, i.e. supply of adhesive tape to railways, the adhesive tapes are further utilized by the railways as a part of the railway locomotives. Hence, applying the above mentioned rule, Heading 8607, being specific shall apply over and above the gene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... action Motor is an electric motor used in the propulsion of vehicle such as electric locomotive or electric roadway vehicle. Traction motors are used in electrically powered rail vehicles such as electric multiple units and others electric vehicles such as electric milk floats, elevators, conveyors and trolley buses as well as vehicles with electrical transmission systems such as diesel electric hybrid vehicles and battery electric vehicles. 9 . Therefore, pressure sensitive polyimide (KAPTON) film adhesive insulation tape which have electrical insulating property can appropriately be described as insulators and also these goods commercially known as insulation tapes. It is used in various other industries as an insulator likewise it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f both the CGST Act and the KGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the KGST Act. 13 . The applicant is involved in the manufacture of a wide range of pressure sensitive adhesive tapes. They import Polyimide Film under the brand name KAPTON and coats Silicone Adhesive over the same. The final product is known as Kapton Polyimide Adhesive Tape which is supplied to various industries and also to Indian Railways. It is clear from the above, that the final product is not only sold to Indian Railways but also sold to other Industries for their use. Hence it is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his is examined and found that there is no dispute that the goods in question are covered under HSN Heading 8546 under the description Electrical Insulators of any material . The issue is that in case this material is supplied to Indian Railways for their use, whether the same goods can be classified under HSN 8607. 15. The HSN Heading 8607 is examined and it reads as under: Parts of Railway or Tramway Locomatives or rolling stock; such as Bogies, bissel-bogies, axles and wheels and parts thereof. The section Notes of Section XVII dealing in Vehicles, Aircraft, Vessels and Associated Transport Equipment in Note 2 states as under: The expressions parts and parts and accessories do not apply to the following articles, whether ..... X X X X Extracts X X X X X X X X Extracts X X X X
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