TMI Blog2021 (12) TMI 466X X X X Extracts X X X X X X X X Extracts X X X X ..... for coach work only and nowhere else. In the case of COMMISSIONER OF C. EX., BANGALORE VERSUS RAMSONS UDYOG (P) LTD. [ 1999 (9) TMI 284 - CEGAT, NEW DELHI] the Hon'ble Tribunal has observed that Sanitary wares are also designed for fitment into the coach and they would be classifiable under Heading 86.07 - Similarly, in the case of SUNFLEX AUTO PARTS VERSUS COMMISSIONER OF C. EX. (APPEALS) MUMBAI-II [ 2004 (5) TMI 398 - CESTAT, MUMBAI] , it was observed by the Hon'ble Tribunal that Parts made out of rubber and metal bonded together as per specification of Indian Railway and meant for use solely and exclusively for them, classification under Sub-heading 8607.00 of Central Excise Tariff. Thus, the Bellow Ducts , specially meant for the Railways, as per the design and layout provided by them, are integral part of the coach and rightly classifiable under chapter heading 8607 of the Customs Tariff Act, 1975. - UP/AAAR/15/2021 - - - Dated:- 20-6-2021 - SHRI AJAY DIXIT, AND SMT. MINISTHY S., MEMBER (Proceedings under Section 101 of the Central Goods and Service Tax Act, 2017 and Uttar Pradesh Goods and Service Tax Act, 2017) The present appeal h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ST 9%). ii. The supply of Bellow Duct to RDSO Ministry of Railways for use in Indian Railways Coaches will fall under the HSN 8424 having GST Rate of 18%. 6) Being aggrieved with the Order No. 73/2021 dated 22.02.2021 , the Appellant filed this appeal application before us. Grounds of appeal submitted by the Appellant:- 7) The Appellant made the following grounds for filing of appeal: 7.1) Bellow Ducts in the instant case are flexible ducts/ conduits through which air flows in the AC Unit of the coaches in the Rails. Bellow Ducts manufactured and supplied by the appellant cannot be used in any other industry and cannot be fitted into any other machinery to form its part other than the Air conditioning unit of the Railways. Whereas Chapter Heading 8424 covers mechanical appliances for dispersing, spraying or projecting only 'liquids or powders' and it does not cover disbursement of Air. Therefore, the goods in the instant case cannot be said to be Industrial Bellows. 7.2) Appellants product is not classifiable in Section XVI or Chapter 84 of Customs Tariff Act 1975. Therefore note 2(e) to section XVII is not applicable to the appellant's cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g 8607 applies, inter alia, to: (a) axles, wheels, wheel set (running gear), metal tyres, hoops and hubs and other parts of wheel; (b) frames, under frames, bogies and bissel-bogies; (c) axle boxes, brake gear; (d) buffers for rolling-stock; hooks and other coupling gear and corridor connections; (e) coachwork. 11). Further, the exclusion clause under the Chapter 86 of the GST Tariff, is as follows: 1. This chapter does not Cover: (a) railway or tramway sleepers of wood or of concrete, or concrete guide-track sections for hovertrains (heading 4406 or 6810); (b) railway or tramway track construction material of iron or steel of heading 7302; or (c) electrical signaling, safety or traffic control equipment of heading 8503. 12). Accordingly, Chapter Heading 8607 reads as under:- Chapter Heading Description 8607 Parts of Railway or tramway locomotives or rolling -stock - Bogie, bissle-bogies, axles and wheels, and parts thereof; 8607 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r accessory . 13). Now coming to the Chapter heading 8424, we observe that it covers Mechanical appliances (whether or not hand-operated) for projecting, dispersing or spraying liquids or powders, fire extinguishers, whether or not charged, spray guns and similar appliances, steam or sand blasting machines and similar jet projecting machines . 14). We observe that as per the appellant, the product in question is specifically designed as per specifications of Indian Railways and they supply it to Indian Railways only and nowhere else. We also observe that though the Advance Ruling Authority has classified the products under Chapter Heading 8537 but the fact that aforesaid product is specifically designed as per specification of Indian Railways and supplied only to the Indian Railways is not discussed by the Authority. 15). We further observe that larger bench of Hon'ble Supreme Court of India, in its judgment dated March 08, 2021, in the Civil Appeal No. 37 of 2009, Westinghouse Saxby Farmer Ltd Vs. Commissioner of Central Excise, Calcutta has observed that: 36. What is recognized in Note 3 can be called the suitability for use test or the user test . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ares are also designed for fitment into the coach and they would be classifiable under Heading 86.07 . 16.2) Similarly, in the case of Sunflex Auto Parts Vs. Commissioner of C.Ex. (Appeals) Mumbai-II (2004 (171) E.L.T. 188 (Tri- Mumbai), it was observed by the Hon'ble Tribunal that Parts made out of rubber and metal bonded together as per specification of Indian Railway and meant for use solely and exclusively for them, classification under Sub-heading 8607.00 of Central Excise Tariff. 16.3) Further, in the case of Mechanico Enterprises Vs. Commissioner of C.Ex, Calcutta-II, {1998 (104) E.L.T 345 (Tribunal)] , the Hon'ble Tribunal has observed that Aluminum water tanks, principally and solely designed for use in railway coaches- classifiable under 86.07 and not under 76.11. 16.4) We also observe that, the Hon'ble Tribunal, in the case of Diesel Components Works Vs. Commissioner of C.Ex. Chandigarh {2000 (120) E.L.T. 648 (Tribunal)} has observed that Parts of internal combustion engine used exclusively for Railway locomotive classifiable by virtue of Section Note 3 of Section XVII of Schedule to the Central Excise Tariff Act, classifiable u ..... 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