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TMI Blog2019 (2) TMI 192X X X X Extracts X X X X X X X X Extracts X X X X ..... d good under Chapter 8421 of the GST Tariff Act 2017 which attracts GST@18% (9% CGST + 9% SGST). In the light of the fact, classification of ‘Air Dryer’ (HSN 8421) has already been finalised at the supplier’s end who also happens to be manufacturer of the goods in question i.e. M/s. Trident Pneumatics Pvt. Ltd., Coimbatore, which is evident from the tax invoice, dated 27.03.2018. The same goods without any modification/ processing are being further supplied to the Western Railways by the applicant. Hence it is clear that HSN of goods do not merits any change in classification merely due to the fact that the goods in question are being supplied to the Indian railways. - AAR No. RAJ/AAR/2018-19/26 - - - Dated:- 18-12-2018 - SHRI J.P. ME ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d., Coimbatore,) dated 27.03.2018. c. The applicant is engaged in supply of various goods to the railways. Such Goods supplied to railways have different classification. Now there is an issue regarding the Air Dyer with filter supplied for use in breaking system of locomotive and Repair/ Spare Kit supplied to railway. d. As per the system of classification of HSN Codes the items related to railway locomotives fall under chapter 86. The relevant section heading 8607 reads as follows:- 8607 PARTS OF RAILWAY OR TRAMWAY LOCOMOTIVES OR ROLLING-STOCK Relevant classification entry under that section is as follows:- 86072100 :- Air brakes and parts thereof Thus, as per the use based classification as it is used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... garded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. (c) When goods cannot be classified by reference to 3 (a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. 2. As per these rules in case if there is a situation where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, axles and wheels, and parts thereof 2.5 2.5 5 6. Further, Vide circular No. 30/04/2018 dated 25.01.2018 Govt, has clarify that goods classified under Chapter 86, supplied to the railways attract 5% GST rate with no refund of unutilised input tax credit. 7. The Applicant purchases above mentioned goods form Manufacturer of such goods. They have supplied goods under HSN Code 84213990 (Centrifuges, Including Centrifugal Dryers; Filtering or Purifying Machinery and Apparatus, For Liquids or Gases) and charging GST @ 18%. 8. The item supplied by the applicant is part of the Air Breaking System of Locomotive used by Railway Only. They are not to be used inde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oncentrates atmospheric contaminants, including water vapour. This raises the dew point of the compressed air relative to free atmospheric air and leads to condensation within pipes and the compressed air cools downstream of the compressor. Excessive water in compressed air, in either the liquid or vapour phase, can cause a variety of operational problems for users of compressed air. These include freezing of outdoor air lines, corrosion in piping and equipment, malfunctioning of pneumatic process control instruments, fouling of processes and products, and more. There are various types of compressed air dryers. Their performance characteristics are typically defined by the dew point. c. Usage of Air dryer as per Wikipedia ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s heading covers: (I) Machines which, by the use of centrifugal force, completely or partly separate substances according to their specific gravities or which remove the moisture from wet substances. (ii) Filtering or purifying machinery and apparatus for liquids or gases, other than eg. Filter funnels, milk strainers, strainers for filtering paints(generally chapter 73) On going through HSN code 8421, it is observed that the Air dryers, which is used for removing water vapour from compressed air or to remove the moisture from wet substances has been classified under 8421 ibid. Further, M/S Trident Pneumatics Pvt. Ltd., Coimbatore is a manufacturer and supplier of Air Dryer (LD2000132) Locomotive Dryer-Il as per the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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