TMI Blog2022 (3) TMI 1142X X X X Extracts X X X X X X X X Extracts X X X X ..... ehicles, Aircraft, Vessels and Associated Transport Equipment. Chapter 86 falls within the ambit of the said Section and deals with 'railway or tramway locomotives, rolling stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signaling equipment of all kinds'. But, in absence of technical details /constitution/ properties, we are not in position to classify the goods whether it falls, under chapter 86 or otherwise. The write up provided by the applicant is incomplete and have no potential to prove 'the subject goods' as essential parts of Railway or tramway locomotives or otherwise. Simply protection of the wires and inner machinery of railways cannot categories the subject goods as part of `railway or tramway locomotives, rolling stock and parts thereof or otherwise - with the limited material fact submitted by the applicant, with no keen technical specification / properties / constitution etc. of 'the subject goods it is found prudent to refrain from pronouncing a Ruling - no ruling is extended on the clarifications sought by applicant. - RAJ/AAR/2021-22/26 - - - Dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an railways and such goods will be manufactured by the applicant in the State of Rajasthan. The applicant hereby submits that the railways invite e-tenders to procure subject goods from the Indian markets wherein the bidders/vendors submit their bids within specified date and time in order to obtain such e-tenders. The applicant has downloaded the copies of some tenders from the official website of Indian Railways. The railways also provide a comprehensive specification / specification number along with tender enquiry which specifies the constructional, dimensional, size and other requirements of the goods to be manufactured and such requirements are strictly required to be fulfilled by the bidders at the time of manufacturing the said goods. Every tender document contains the name of an inspection agency appointed by railways which inspect subject goods and if during the inspection, it is found that such goods do not fulfil the given specifications, the supplier has to re-offer fresh material for inspection or replacement if found defective at the user end. A part of payment to the vendor is released against the inspection certificate and a proof of delivery of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its specific usage, is designed and structured (viz. from the stage of R D to manufacture, till installation) to be fitted as per Railway specifications for locomotives / coaches/trams / metro. 3) We also put forth our interpretation of Law and are of the view that subject goods should be classified under Heading 8607 on account of following reasons: a) Section XVII of the Customs Tariff Act (CTA) deals with `Vehicles, Aircraft, Vessels and Associated Transport Equipment. Chapter 86 falls within the ambit of the said Section and deals with `railway or tramway locomotives, rolling stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signaling equipment of all b) Chapter Heading 8607, under which the applicant proposed to classify the subject goods, deals with parts of railway or tramway locomotives of rolling stock; such as Bogies, bissel-bogies, axles and wheels, and parts thereof. c) The Supreme Court in CCE v Insulation Electrical (P) Ltd. (2008) 224 ELT 512 (SC)] CCE v Insulation Electrical (P) Ltd. (2008) 224 ELT 512 (SC) / CCE v Insulation Electrical (P) Ltd. (2008) 22 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... desired purpose and hence, the primary condition for classification under Chapter Heading 8607 is satisfied. i) We hereby place our reliance on the case of M/s Knorr Bremse India Ltd. Vs. CCE, New Delhi reported in 2011 (7) TMI 621-CESTAT, Delhi, wherein, it was categorically held that the items under dispute (which included Wheel Slide Protection) are 'parts of railway breaks' imported in unassembled conditions and such parts were specifically held to be covered under Heading 8607 of the Customs Tariff. j) The basic utilization of the above goods is for protection of wires in locomotives/ coaches / trains and metro and for protection of electric generator. Having said that, such goods cannot per se be utilized independently on their own accord or with any other mode of transportation. On account of trains being specifically required to be constantly equipped by the goods proposed to be supplied so as to protect the wires and inner machinery, the subject goods are intrinsic to the running of trains and metro coaches and no other mode of transportation. In view of the above facts, we are of the opinion that that the subject goods being utilized exclusively ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9? C. PERSONAL HEARING In the matter personal hearing was granted to the applicant on 12.10.2021. Shri Varun Khandelwal, CA (Authorised Representative) of applicant appeared for PH. During the PH, he reiterated the submissions already made in the written application. He requested for early disposal of the application. D. FINDINGS, ANALYSIS CONCLUSION: 1. We have gone through the facts of the case and submission made by the applicant at the time of preliminary hearing. 2. The Applicant is desirous to supply the following goods (`the subject goods') to Indian Railways: - a) Non-metallic Sleeves b) Glass Fiber Cords c) Spiral Tubes d) Polyamide [Nomex] PA Vlies e) Any other goods as may be supplied from railways from time to time based on their own specifications. 3. The applicant in their written submission stated that the subject goods will be used for protection of wires in locomotives/coaches /trams and metro i.e. railway industry / locomotive industry. Some of the goods will also be used in locomotives for electrical insulation purposes. The goods do not have any other intended use except in railways as they will be manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly to parts 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 that part of accessory. 4. --- 5. --- 6.2 Chapter 86 of Customs Tariff Act, 1975, which is as follows: CHAPTER-86 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 kinds NOTES : 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 signalling, safety or traffic control equipment of heading 8530. 2. Heading 8607 applies, inter alia, to: (a) axles, wheels, wheel sets (running gear), metal tyres, hoops and hubs and other parts of wheels; (b) frames, under fram ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lway or tramway locomotives nor it constitute the part of 'railway or tramway locomotives, rolling stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signaling equipment of all kinds'. As the goods used for cable bunching, harnessing, bundling and protection of wires cables may be classified other than chapter 86 therefore, in absence of technical specifications/ constitution/ properties, we are not in position to classify the goods whether it falls under chapter 86 or otherwise. (ii) GLASS FIBER CORDS: are used to support overhang coils in rotating machines. This product absorbs impregnating varnish resin and on curing forms a hard support for coil to give vibration free overhang. On gone through the detail provided by the applicant of the GLASS FIBER CORDS, it cannot find out that what type of rotating machines it supports. Thus, neither it reveals that these goods are specifically used only for railway or tramway locomotives nor it constitute the part of 'railway or tramway locomotives, rolling stock and parts thereof; railway or tramway track fixtures and fitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osition to classify the goods whether it falls under chapter 86 or otherwise. (v) Any other goods as may be supplied from railways from time to time based on their own specifications. On gone through the detail provided by the applicant of the Any other goods as may be supplied from railways from time to time based on their own specifications, we find that it is a vague term and cannot find out that which portion of railway or tramway locomotives it used and how it become a part thereof. Thus, neither it reveals that these goods are specifically used only for railway or tramway locomotives nor it constitute the part of 'railway or tramway locomotives, rolling stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signaling equipment of all kinds'. Thus, in absence of detail technical specifications /constitution/ properties, we are not in position to classify the goods whether it falls under chapter 86 or otherwise. 9. In view of above legal provisions and fact of the instant case, we are of the view that Section XVII of the Customs Tariff Act, 1975(CTA) deals with `Vehicles, Ai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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