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TMI Blog2019 (2) TMI 1908X X X X Extracts X X X X X X X X Extracts X X X X ..... nning stock) and thus covered under Entry No. 241 of Schedule-I of the GST rate notifications? (b) If the answer to (a) is in the affirmative, what is the applicable rate of tax under GST notifications? (c) If the answer to (a) is in the negative - (i) Whether the airsprings imported by the applicant's competitors is classifiable under HSN Heading 8607? (ii) What is (a) the correct classification of the airsprings imported by the applicant; and (b) the applicable rate of tax under GST notifications? (iii) Whether the applicant can also be eligible for classifying imported goods under HSN Heading 8607 like its competitors? 5. The application for advance ruling was forwarded to the jurisdictional GST Officer to offer their comments/views/verification report which are received in this office vide Letter C.No. 20-CGST/Advance Ruling/R-07/D-II/N/01/2019/1193, dated 5-2-2019. 6. The applicant was granted a personal hearing on 15-2-2019. Mr. Monish Panda, Advocate, Authorized representatives on behalf of app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rspring module must contain the following :- S. No. Item Quantity 1. Air spring (rubber bellow) 1 2. Top Interfacing plate with bolster with [spigot] 1 3. Sealing O-Rings 2 4. Base plate 1 5. Emergency Spring 1 6. High tensile hex. socket hard screws with spring washers 4 sets c) The top and bottom metal enclosures are essentially required to contain the air within the airspring to function as a spring under airpressure. The dynamics of the working are as under :- (i) When the load in the bogey increases, a levelling value causes air to be fed into the airspring from the vehicle's own air supply. (ii) Similarly, when the load in the bogey decreases, air is removed from the airspring. These actions of feeding and removing of air are achieved by air pressure controlled through levelling valve. (d) There is an official explanation of the air suspension systems which are fitted in the bogies by the Indian Railways. It can be derived from it that the airspring assembly (of which airspring is an integral part) are custom-made and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4016. (h) Without prejudice, when two competing headings exist, that classification which is beneficial to the taxpayer is to be adopted. 11. We have considered the submissions made by the applicant in their application for advance ruling, in additional submission at the time of personal hearing and as well as views of the jurisdictional office. The first issue to be decided whether airsprings imported by the applicant are classifiable under HSN Heading 8607 :- (a) 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nation (iv) in Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017 reads as follows : "The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification." From the above, it is clear 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. (e) Further, as per specification provided by the applicant "In air suspension system, properties of air are used for cushioning effect. Enclosed p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other vulcanizing agent (such as, sulpher chloride, certain oxides of polyvalent metals, selenium, tellurium, thiuram di- and tetrasulphides, certain organic peroxides and certain synthetic polymers), whether or not using heat or pressure, or by high energy, radiation so that it passes from a mainly plastic state to a mainly elastic one. It should be noted that the criterion concerning vulcanization with sulphur is relevant only for the purposes of Note 4, i.e. for determining whether a substance is synthetic rubber or not. (i) Further, for appropriate classification of the goods in question, Chapter 86 is also to be examined. Section Note 2(a) to the Section XVII of Customs Tariff Act, 1975 provides that the expression "parts and accessories" does not apply to the articles of vulcanized rubber other than hard rubber (Heading 4016) Section Note 2(a) to the Section XVII of Customs Tariff Act, 1975 is as follows : "2. The expressions "parts" and "parts and accessories" do not apply to the following articles, whether or not they are identifiable as for the goods of this Section : (a) joints, washers or the like of any material (classif ..... X X X X Extracts X X X X X X X X Extracts X X X X
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