9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (1) TMI 1488 - AAR - GSTClassification of goods - Springs of Iron and Steel for supply to the Railways - whether classified under HSN Code no. 8607 of Chapter 86 of First Schedule to the Customs Tariff Act, 1975 or under HSN Code no.7320 of Chapter 73 of the Tariff Act? - Held that - Chapter Heading 8607 does not anywhere clearly classify Springs of Iron and Steel. It only refers to parts of railway (such as bogies, bissel-bogies, axels and wheels and parts thereof) in a general way; whereas, Chapter Heading 7320 clearly classifies springs of Iron and Steel for Railways. Leaf-springs for Railways are classified under Tariff Item No. 73201012 and Coil-springs for Railways are classified under Tariff Item No. 73209010 - since Springs of Iron and Steel, are specifically classifiable under Chapter Heading 7320, the general description under Chapter Heading 8607 is not applicable. Springs of iron and steel for railways are classifiable under HSN Code no. 7320 and taxable @ 18% under Serial No. 234 of Schedule III of Notification No. 1/2017- CT (Rate) dated 28.06.2017. Ruling - Springs of Iron and Steel for Railways are classifiable under HSN Code no. 7320 (taxable @ 18%) under Serial No. 234 of Schedule III of Notification No. 1/2017- CT (Rate) dated 28.06.2017.
Issues involved: Classification of Springs of Iron and Steel for supply to Railways under the GST Act
Analysis: The Applicant, a Manufacturer of Springs of Iron and Steel for supply to the Railways, sought an Advance Ruling on the classification of these items under Section 97(2)(a) of the CGST/WBGST Act, 2017. The Applicant claimed that the question raised had not been decided by any authority under the GST Act, and the officer concerned had no objection to admitting the Application, which was subsequently accepted. The Applicant contended that all items supplied to the Railways were classified under HSN Code no. 8607 of Chapter 86 of the Customs Tariff Act, but argued that Springs of Iron and Steel for Railways fell under HSN Code no. 7320 of Chapter 73 of the Tariff Act. They sought clarification on the appropriate classification of these springs for railway use. The classification of Springs of Iron and Steel for Railways was analyzed in the context of Section XV and Section XVII of the Tariff Act. Note 2 to Section XVII clarified that certain parts and accessories, including springs, were excluded from the classification under Section XVII if they were identified as parts of general use under Section XV. It was noted that Chapter Heading 8607 did not specifically classify Springs of Iron and Steel, while Chapter Heading 7320 clearly did so for railway purposes. Following the principle that the most specific description takes precedence, it was concluded that Springs of Iron and Steel for Railways should be classified under HSN Code no. 7320, taxable at 18% under Serial No. 234 of Schedule III of Notification No. 1/2017- CT (Rate) dated 28.06.2017. The ruling declared that Springs of Iron and Steel for Railways are classifiable under HSN Code no. 7320, taxable at 18%, subject to the provisions of the GST Act.
|
