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2018 (9) TMI 2012 - AAR - GSTClassification of goods - HSN Code - luminaire in passenger coaches of Indian Railways which exclusively works on electric supply of 110/127 Volts - rate of tax at which such LED lights shall attract GST under Notification No. 1/2017-Central Tax (Rate) dated 28-6-2017 - HELD THAT - It is clearly established in Notes 2(f) and (k) that electrical machinery or equipment (Chapter 85) and lamps or lighting fitting of Heading 9405 whether or not indefinable as for the goods of said Sections cannot be treated as parts and parts and accessories of any vehicles Aircraft Vessels and Associated Transport Equipment. The implication of Note 2 of Section XVII would be that the LED based luminaire procured by the railways are to be classified in Chapter 9405 instead of 8607. Therefore GST on LED bases luminaire is applicable by classifying the same under Chapter sub-heading 9405. Hon ble Supreme Court having similar issue in the case of INTEL DESIGN SYSTEMS (INDIA) P. LTD. VERSUS COMMISSIONER OF CUSTOMS CENTRAL EXCISE 2008 (2) TMI 5 - SUPREME COURT upheld the order of the adjudicating authority by a verdict that Since these fall under the category of excluded goods under Chapter Notes even though they are used specifically solely or principally with the armoured vehicles of Chapter Heading 8710 they are classifiable under Chapter Heading 8536.90 only as held by the adjudicating authority. The contention of the party is not correct and LED based luminaire used in passenger coaches of Indian Railways should be classifiable under Chapter 9405 of the GST Tariff and the taxpayer have to pay CGST @ 6% in terms of Sr. No. 226 of Schedule-II of Notification No. 1/2017-Central Tax (Rate) dated 28-6-2017 as amended and SGST @ 6% in terms of Schedule-II of Notification No. KANI-2-836/XI-9(47)/17-U.P.ACT-l-2017-Order-(06)-2017 dated 30-6-2017 (as amended).
Issues involved:
Classification of LED based luminaire for passenger coaches of Indian Railways under GST HSN code and applicable GST rate. Analysis: 1. The applicant sought clarification on the correct classification of LED lights for passenger coaches of Indian Railways and the applicable GST rate. They argued that these LED lights should be treated as parts of railways due to their specific design and usage exclusively within Indian Railways coaches. 2. The applicant contended that the LED lights they manufacture are unique and can only be used within Indian Railways coaches due to their specific design and voltage load requirements. They argued that these LED lights should be classified under Tariff Heading 8607 and attract GST at 2.5% as per Notification No. 1/2017-Central Tax (Rate). 3. The applicant emphasized that the LED lights are manufactured based on specific design and drawings provided by Indian Railways, ensuring they work only with the electric voltage supply of 110/127V within the coaches. They provided case laws to support their claim. 4. Upon reviewing the application, oral and written submissions, and documents, the Authority decided to admit the application and forwarded it to the Jurisdictional GST Officer for comments. 5. The Jurisdictional GST Officer submitted their views stating that the LED lights should be classified under Chapter 9405 instead of 8607, based on Notes 2(f) and 2(k) of Section XVII of the GST Tariff/Customs Tariff Act, 1975. 6. The Authority, after considering the arguments and submissions, ruled that the LED based luminaire used in passenger coaches of Indian Railways should be classified under Chapter 9405 of the GST Tariff. They determined that the applicable GST rate would be 6% CGST and 6% SGST. 7. The ruling clarified that the correct classification of the LED luminaire for passenger coaches of Indian Railways, exclusively working on electric supply of 110/127 Volts, falls under Chapter 9405. The applicable GST rate for such LED lights is 6% CGST and 6% SGST as per the relevant notifications. This detailed analysis highlights the key arguments, submissions, legal interpretations, and the final ruling of the Authority regarding the classification and GST rate applicable to LED lights for passenger coaches of Indian Railways.
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