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TMI Blog2022 (2) TMI 826X X X X Extracts X X X X X X X X Extracts X X X X ..... ide letter dated 12.08.2021 have submitted that- (1) The Applicant is licensed & approved by Indian Railways for manufacturing of parts of Rolling Stock and Coach work as per design & drawings developed by them. They have also been approved by Railways for DRIVER CAB AIR CONDITIONER UNIT for EMU/MEMU trains to be supplied to its vendors for its ultimate use by the Indian Railways. (2) Accordingly, they are supplying DRIVER CAB AIR CONDITIONER UNIT for EMU/MEMU trains to vendors approved & accepted by Indian Railways as per Specifications. (3) This product is to be manufactured Strictly as mandated by Railways specification, according to the approved QAP and drawings of Indian Railways, for its use in EMU/MEMU Trains in Drivers' cabin for the purposes of Air Conditioning (Cooling) (4) In their opinion, this manufactured item should be covered under chapter heading 8607 as parts of Coach Work. (5) the Chapter note 2 of Ch.86 clearly says heading 8607 applies, inter alia, to (e) Coach work. (6) Further, Tariff heading 8607 says: Parts of Railway or tramway locomotive or Rolling Stock- such as bogies, bissel-bogies. (7) The Google Search - maintenance Manual for BG Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved by the competent Authority, the same appears to be appropriately covered under Customs Tariff Heading No. 8607 as parts of railway locomotives." (13) Therefore, it is requested that; 1. The correct Classification of DRIVER CAB AIR CONDITIONER UNIT for EMU/MEMU trains of Railway Rolling Stock of Railways (Parts of Coach Work) for the Railways Running Stock - be given, in order to avoid any dispute in future. 2. That if the above product is supplied to the Indian Railways through other Vendors/suppliers, what would be the provision and the classification of the products. 3. The correct rate of GST Tax on the said products, supplied exclusively to the Indian Railways through its vendors for its Coaches. 6. The application for advance ruling was forwarded to the Jurisdictional GST Officer to offer their comments/views/verification report on the matter. The Assistant Commissioner, CGST & Central Excise Division-Lucknow II, Lucknow vide his F.No. GEXCOM/TECH/MISC /432/2021-TECH-CGST-DIV-II-LK0/921 dated 22.10.2021 has opined that the Chapter sub heading 8607 is the correct classification for "Driver Cab Air Conditioning unit for EMU/MEMU manufactured by the applicant for fit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other products also. We want to make it clear that we are examining classification of 'Driver Cab Air Conditioner Unit for EMU/MEMU trains' only. 12. We find that Chapter 86 of the Customs Tariff cover Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kind. Further, Note 2 of Chapter 86 mentions that "Heading 8607 applies, inter alia, to- (a) axles, wheels (running gear), metal tyres, hoops, and hubs and other parts of wheels; (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; and (e) coachwork 13. Further, the note 1 of Chapter 86 reads as under- 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 signalling, safety or traffic control equipment of heading 8530. 14. The Chapter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and provided with fan for ventilation. In order to increase the comfort further inside the cab, it has been decided to make the cab air-conditioned. This specification lays down the technical requirements, design, manufacture, supply, testing and commissioning of driver's cab air-conditioning unit to be installed in Driver's cab of MRVC coaches. 16. We observe that in following cases, the classification of goods supplied to railways have been discussed- (1) in the case of Commissioner of Central Excise, Bangalore Vs. Sri Ram Metal Works {1998 (99) E.L.T. 616 (Tribunal), the Hon'ble Tribunal has observed that: "It is seen that the containers as fabricated, to specific design and drawing of the railways for fitment into coach and it becomes a part of the coach. In that view of the matter, assessment under 8312.90 is not sustainable. The Chapter Note 2 to the Chapter 86 clearly sets out that the coach work, falls under this chapter. The term coach work, as such, has not been defined. Coach work, as such, has to be, therefore, treated in the broad sense of the work which goes to make the coach functionally complete. In the case of railways, it goes without saying tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder No. 16/AAAR/28.06.2021 dated 28.06.2021 has also held that the "Switch Board Cabinet" 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. 18. In the instant case, we observe that the "DRIVER CAB AIR CONDITIONER UNIT for EMU/MEMU trains of Railway Rolling Stock" would be manufactured by the applicant, strictly as per the specification and design provided by the Indian Railways (RDSO) and meant to be solely used in railway rolling stock and nowhere else. Accordingly, we observe that the ratio of the above referred judgments is squarely applicable in the instant case and the "DRIVER CAB AIR CONDITIONER UNIT for EMU/MEMU trains of Railway Rolling Stock" are classifiable under Tariff heading 86079920 i.e. "Parts of tramway, locomotives and running stock". 19. We find that in Form GST ARA-01, the applicant has sought ruling on the question "classification of Coachwork like DRIVER CAB AIR CONDITIONER UNIT for EMU/MEMU trains of Railway Rolling Stock" only but in their letter dated 12.08.2021, the applicant has also sought ruling on the que ..... X X X X Extracts X X X X X X X X Extracts X X X X
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