TMI Blog2021 (2) TMI 1226X X X X Extracts X X X X X X X X Extracts X X X X ..... e said Circular, only goods, classified under Chapter 86, supplied to the railways attract 5% GST rate with no refund of unutilised input tax credit and other goods [falling in any other chapter], would attract the general applicable GST rates to such goods, under the aforesaid notifications, even if supplied to the railways. Therefore, it is very clear that, any product other than those covered under Chapter 86, supplied to the railways would not qualify for the HSN 8607 and are not to be considered as a parts of railway coaches, even if supplied to the railways. Entry 8607 is very restrictive entry for the purposes of consideration of goods to be classifiable as parts of railway bogies to avail the benefit of reduced rate of taxes. The subject Bellow Sets (or Bellow Ducts), though to be used in Railway coaches, cannot be called as parts of railway bogies under Chapter Headings 8607 of the Tariff, due to the specific HSN available for Bellow and therefore, the Bellow Sets (Bellow Ducts) merit classification under HSN 8424 and it is covered in the Entry no. 325 of Schedule III of Notification No. 1/2017 C.T. (Rate) dt. 28.06.2017 and attract GST @18%. - UP ADRG 73 /2021 - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... going through the sub-heading of Chapter 86, it is observed that the sub-heading 86079910 (parts of coach work of railway running stock) covers the Parts of coach work. As such, he is of the opinion that the Chapter sub heading 8607 should be the correct classification for Bellow Ducts to be supplied by the applicant for use in Indian Railway Coaches and will attract the GST rate as per present Tariff. 7. The applicant was granted a personal hearing on 11.02.2021 which was attended by Shri Shashank Mittal, CA/ Authorized representative during which he reiterated the submissions made in the application of advance ruling. DISCUSSION AND FINDING 8. At the outset, we would like to make it clear that the provisions of both the CGST Act and the UPGST 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 provision under the UPGST Act. Further for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / UPGST Act would be mentioned as being under the CGST Act'. 9. We have gone through t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S.No. Chapter/Heading/Sub-heading/Tariff item Description of Goods 325 8424 Mechanical appliances (whether or not hand-operated) for projecting, dispersing or spraying liquids or powders; spray guns and similar appliances; steam or sand blasting machines and similar jet projecting machines [other than fire extinguishers, whether or not charged] As such, other than fire extinguishers, the rate of GST on HSN 8424 is CGST 9% SGST 9% (Total 18%). 14. We find that the applicant had arrived HSN 8607 for their product Bellows set consisting of 1 No. of Supply Air Bellow, 02 Nos. of Fresh Bellows and 2 Nos. of Return Air Bellow Ducts (Bellow Duct as stated by the applicant). There is entry heading HSN 8607, with the description - Parts of railway or tramway locomotives or rolling-stock; such as Bogies, bissel-bogies, axles and wheels, and parts thereof and it is covered under Sr. no. 241 of Schedule I of Notification 1/2017 C.T. (Rate) dt. 28.06.2017, taxable @ 5% w.e.f 01.07.2017. This schedule entry was amended by inserting Sr. No. 205 G of N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , is relevant to items classified under Chapters 84 and 85. Section XVII of the Customs Tariff, (Chapter 86 to 89), which covers Vehicles, Aircraft, Vessels and Associated Transport Equipment , is relevant to items classified under Chapters 86. 18. We find from the above that, the classification of goods under Chapter Heading 8607 does not include 'bellow Sets (or Bellow Ducts). It only refers to parts of railway such as bogies, bissel-bogies, axels, wheels, brakes, hooks and parts thereof, in a general way; whereas, Chapter Heading 8424 clearly includes 'Bellow' . Thus from a reading of Note 2 (e) to Section XVII of the Customs Tariff and Note 2 to Chapter 86 of the Customs Tariff, the applicant's product, 'Bellow Ducts' are classifiable under HSN 8424. 19. Further, we find that Circular No. 30/4/2018-GST dated 25.01.2018 of the Government of India, Ministry of Finance, Department of Revenue (Tax and Research Unit), New Delhi has issued clarification on classification of supplies made to the Indian Railways classifiable under any chapter, other than Chapter 86. As per the said Circular, only goods, classified under Chapter 86, supplied to the ra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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