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TMI Blog2020 (8) TMI 246X X X X Extracts X X X X X X X X Extracts X X X X ..... uyer), Faridabad, who are the main contractors for supply of the impugned goods. Further they also submitted that the buyer of the impugned goods have given an affidavit that the said goods supplied by the applicant are in turn supplied only to Indian Railways the said goods are not useful for anyone other than the Indian Railways and thus the impugned goods are suitable for use solely with the Railway Locomotives. It is observed from the photographs submitted by the applicant that the goods are suitable only for coupling the railway bogies/wagons and hence the first conditions is fulfilled - It is observed that in the instant case the impugned goods (parts of coupling device) are suitable for use solely with the Railway Locomotives and also classified specifically under heading 8607.30. Thus the second condition also is fulfilled. Thus, the impugned goods (parts of coupling device) are classifiable under heading 8607.30. Rate of GST - HELD THAT:- The impugned goods are not covered under any other Schedules of the Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017. Further No refund of unutilized input tax credit shall be allowed, where the credit has accumulated o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aining the orders from Indian Railways. Therefore the said goods are finally used by Indian Railways and no other customer can use the same and hence the goods merit classification under HSN 8607 attract 5% of GST. 5.2 Further, the rate of GST notified by the Government is applicable at all stages of supply from manufacturing to retail. In the instant case the applicant is a manufacturer, buyer can be considered as dealer and Indian Railways as the final consumer. Hence the aforesaid goods can t be classified under HSN 7325, just for the reason that the applicant is not supplying directly to the Indian Railways. 5.3 The entry under HSN 7325 covers castings of iron and is a general entry. All the specific items such as Automobile parts, Earthmoving parts, Railway parts, Valves, Defence parts etc., used in respective industries are derived from the basic entry i.e. castings of iron. However, when different / specific entries are provided for the individual items on the basis of usage, then the goods need to be taxed as per specific entry. Specific Entry in the schedule always overrides the general entry . 5.4 The buyer has confirmed that the goods supplied by the applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut machining while assembling the coupler and some parts are machined to achieve accurate dimensions. However the physical appearance, mechanical properties chemical composition of the said castings/ parts will not be changed even after the machining process. Hence the unfinished/ finished parts are one the same and can t be classified under chapter heading 7325. Even Rule 2(a) of General Rules of Interpretation also support our contention . f) The applicant relied upon the Hon ble Supreme Court Judgment in the case of OK play India Vs CCE (2005) 180 ELT 300 (SC) = 2005 (2) TMI 114 - SUPREME COURT wherein the parameters for classification of goods under Central Excise Tariff Act 1975 have been laid down. g) The applicant furnished the copies of purchase order issued by the buyer, invoice raised by them towards supply of impugned castings, material test certificate (MTC) for impugned castings under chapter heading 8607 and MTC for general items under chapter heading 7325 to show the difference between the impugned castings and general items. h) Entry No.241 of Schedule I to the Notification No. 1/2017-CentraI Tax (Rate) dated 28.06.2017 specifies that goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duly authorised representative of the applicant during the personal hearing. We have also considered the issues involved, on which advance ruling is sought by the applicant, and relevant facts. 8.2 At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the KGST Act. 8.3 The Applicant manufacture supply various castings, as per pre-determined drawings to M/s. Sanrok Enterprises, Faridabad, who in turn supply the said castings to Indian Railways on subjecting the same to further process of machining and contends that the impugned castings are classifiable under chapter heading 8607 thereby attract GST 8.4 In view of the above, the issues before us to decide are (i) the classification of impugned goods and (ii) the applicable GST rate thereon. We proceed to consider the issues one at a time. 8.5 The applicant submitted that the impugned goods whose classification is to be decided are nothing but castings of coupler parts su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccessories do not apply 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 Chose chapters is to be classified under the heading which corresponds to the principal use of that part or accessory: 8.9 It is observed that in the instant case the impugned goods (parts of coupling device) are suitable for use solely with the Railway Locomotives and also classified specifically under heading 8607.30. Thus the second condition also is fulfilled. Hence we conclude that the impugned goods (parts of coupling device) are classifiable under heading 8607.30. 8.10. The other issue to be decided is the rate of GST applicable to the impugned goods. The applicant claims that the impugned goods are taxable at the rate of@5% GST, in terms of Entry No.241 of Schedule I to the Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, which is appended below: Sl.No. Chapter Heading/ Sub-Heading/ Tariff Item Description of good 241 8607 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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