TMI Blog2021 (7) TMI 651X X X X Extracts X X X X X X X X Extracts X X X X ..... lassified under that heading which corresponds to the principal use of that part of accessory. In the instant case, as per the applicant's submissions, it is found that the impugned goods are suitable for use solely or principally with Railway Locomotives falling under Chapter 86 and therefore Note 3 does not exclude the subject products, rather the said Note 3 includes the impugned products - the second condition of Chapter 86.07 is also fulfilled in the subject case. The impugned goods i.e. Brush Holder Assembly and parts. Lead Wires for locomotives and Insulating Rods Locomotives manufactured by the applicant as per the specification and drawings of Indian Railways are classifiable under heading 86.07. - GST-ARA-61/2020-21/B-31 - - - Dated:- 13-7-2021 - SHRI RAJIV MAGOO, AND SHRI T.R. RAMNANI, MEMBER PROCEEDINGS (Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) The present application has been filed under Section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as the CGST Act and MGST Act respectively ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rts or accessories which are not suitable for use solely or principally with the articles of those Chapters. A part or accessory which answers to a description in two or more of the headings of those Chapters is to be classified under that heading which corresponds to the Principal use of the part or accessory. 2.5 Further as per Rule 3[a] of the General Rules of Interpretation under Customs Act 1975. 3. When by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred over headings providing a more general description However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. 2.6 Therefore any other headings give only a General description. Applicant relies on the order of the Advance Ruling Authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt pins should be classified under HSN code 8607 as the said goods are produced as per the Indian Railway drawings/specification used only in Indian Railway. 3.5 Applicant has cited the ARA Order in the case of Karnataka No. KAR/ADRG/40/2020 dated 30/07/2020 in support of their contention. In the said ARA, the parts involved such Couplers, Knuckle. Locks, Troggle, Yoke etc. were manufactured by the applicant and supplied M/s. Sanrok Enterprises (who in turn supply to Indian Railways after assembly) are Classifiable under 8607. It was also stated that the said goods are not useful or anyone other than the Indian Railway and used solely with the railway locomotives. But in this impugned case the goods have been classified under specific HSN Code, also as per the railways purchase order only specific commodity mentioned along with the 18% tax rate. The commodities which are mentioned in purchase order are Brush holder without Carbon brush for Hitachi. Lead wire A-150 mm square for Hitachi. 3.6 These specific goods falls under HSN Code 8503 for Brush holder, 8544 for lead wire and 8547 for Brush holder support pin/terminal support/brush holder arm and cannot be covered under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cal supply to the traction motors. In the most elementary ease, the generator may be directly connected to the motors with only very simple switchgear. 4.1.3 An electric locomotive is a locomotive powered by electricity from overhead lines, a third rail or on-board energy storage such as a battery or a super capacitor. Electric locomotives have electrical or electronic components, including switchgear, rectifiers and other components, which control or modify the electrical supply to the traction motors. The Locomotives manufactured by IR are: Electric locomotives type WAG-5. WAG-7. WAP-4 and AC/DC locomotives type WCAM-3. Diesel Electric Locomotives WCAM 1 2. WCAG-1. WDAP-5. WDM-1 2. WDM-2G. WDM-3D. WDP. WDG. 4.2 HS-15250A, TAO 659A and 4907 are some of the types of traction motors of IR fitted in the locomotives. All traction motors are hanging on the wheel axle. They cannot be used anywhere else as they are integrated with the wheel axle with suspension mounting and integral Clears of the locomotive. 4.3.1 The Locomotive require several parts like Brush Holders, Lead Wires etc. to convey the power to the prime moving parts. 4.3.2 In Brush Holder without carbon brus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e wheel axle with suspension mounting and integral Gears of the locomotive. All the specifications like metallic/ non-metallic materials, the dimensions, physical parameters, functional parameters are specific to Railways. The attachment type to the wheel shaft axle is also specific to IR. 4.10 8607-lncludes Parts of railway or locomotives or rolling-stock Bogies, bissel-Bogies. Axles and wheels, and parts thereof. We state that the parts brush holder, lead wire and brush holder support pin should be classified under HSN code 8607 as the said goods are produced as per the IR drawings/specification used only in Indian Railway. 4.11 The Order pertaining to : 1. Wendell Submersible Pvt. ltd. V/S Union of Indian (UOI) High Court of Gujarat at Ahmedabad Special Civil Application No.4656 and 4658/86 and 1139/87/07/09/1988. Which pertains to The HSN Code 8503 is irrelevant. It does not cover parts of Locomotives. The judgment is regarding some other product all together. 4.13 The order pertaining to Controller of Central Excise V/S Vie Kay Electrical on 27/02/1905 in the Customs, Excise Gold Tribunal Delhi, Customs, Excise A Gold Tribunal -Delhi Poona Radiators V/S Coll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st not be excluded by the provisions of the Notes to Section XVII. 5.5.2 We find that out of all the section notes of Section XVII, only Note 2 and Note can be considered to be relevant in the subject matter. Thus it is to be seen whether or not. the said Notes 2 and/or 3 excludes/includes the subject goods. 5.5.3 As per Note 2 to Section XVII. 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 ...........................; (b) parts of general use, as defined in Note 2 to Section XV. of base metal (Section XV), or similar goods of plastics (Chapter 39); (c) articles of Chapter 82 (tools); (d) articles of heading 8306; (e) machines or apparatus of headings 8401 to 8479, or parts thereof; articles of heading 8481 or 8482 or, provided they constitute integral parts of engines or motors, articles of heading 8483; (f) electrical machinery or equipment (Chapter 85); (g) articles of Chapter 90; (h) articles of Chapter 91; (ij) arms (Chapter 93); (k) lamps or lighting fittings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not exclude the subject products, rather the said Note 3 includes the impugned products. 5.5.9 Thus the second condition of Chapter 86.07 is also fulfilled in the subject case. 5.5.10 In view of the discussions made in paras 5.5.1 to 5.5.9 above, we hold that the impugned goods i.e. Brush Holder Assembly and parts. Lead Wires for locomotives and Insulating Rods Locomotives manufactured by the applicant as per the specification and drawings of Indian Railways are classifiable under heading 86.07. 06. In view of the discussions made above, we pass an order as follows: ORDER (Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) NO.GST-ARA-61/2020-21/B-31, Mumbai, 13.07.2021 For reasons as discussed in the body of the order, the question is answered thus.- Question: Railway parts such as Brush Holder Assembly and parts, Lead Wires for locomotives and Insulating Rods Locomotives manufactured as per the specification and drawings of Indian Railways. These should be classified under HSN Heading 8503, 8544 and 8547 @ 18% or under HSN Heading 8607 @12% Answer: The products ..... X X X X Extracts X X X X X X X X Extracts X X X X
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