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TMI Blog2019 (9) TMI 1047X X X X Extracts X X X X X X X X Extracts X X X X ..... sories under these Chapters. Therefore, components of railway locomotives should be classified under heading 8607 subject to the provisions of Notes 2 and 3 of Section XVII. The composite goods manufactured by the Applicant that are used primarily as parts of railway locomotives are to be classified under heading 8607 and taxable @ 5% GST with no refund of the unutilized input tax credit. The same classification will apply to the Applicant s other supplies to the railways if they are used primarily as parts of railway locomotives, provided they are not excluded by Note 2 of Section XVII. Supplies other than the above two categories, if any, shall not be classified under heading 8607. - Case Number 28 of 2019 And Order Number 25/WBAAR/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned from the Revenue does not object to the admission of the Application. 1.3 The Application is, therefore, admitted 2. Submissions of the Applicant 2.1 The Applicant submits that it manufactures locomotive spares in accordance with the drawings and specifications of the railway authority and classify the goods under the Heading 8607 of the First Schedule to the Customs Tariff Act, 1975, (hereinafter referred to as the Tariff Act ), to which the GST Act is aligned for classification [as per Explanations (iii) and (iv) to Notification No. 01/2017- CT (Rate) dated 28/06/2017]. The Applicant refers to Memo No. 2017/RS(G)/779/2 dated 20/06/2017 of the Railway Board and Circular No. 30/4/2018-GST dated 25/01/2018 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... components of railway locomotives should be classified under heading 8607 subject to the provisions of Notes 2 and 3 of Section XVII. 3.3 Note 2 of Section XVII states that parts and parts and accessories do not apply to a group of articles listed thereunder. They include inter alia parts of general use, as defined in Note 2 of Section XV, of base metal whether or not they are identifiable as for the goods of Section XVII. Note 2 to Section XV defines the expression parts of general use to mean (a) articles of headings 7307, 7312, 7315, 7317 or 7318 and similar articles of other base metals, (b) springs and leaves for springs of base metal, other than clocks or watch springs, and (c) articles of headings 8301, 8302, 8308, 83 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the present case however, we do not seek the detailed characteristics/classification of the thirty-five components since the composite goods MSU is a part, meant specifically for electric locomotives and it is, therefore, held classifiable under heading 8607, as discussed in para 3.2 to 3.5. 3.6b On the other hand, classification of springs of iron and steel for the railways can serve as a good example of how to classify the goods in the Applicant s basket other than the composite ones. Heading 7320 includes springs of iron and steel for the railways. Leaf-springs for Railways are classified under Tariff Item No. 73201012 and Coil-springs for Railways are classified under Tariff Item No. 73209010. 3.6c In terms of Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X
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