9911796707
TMI Blog2019 (2) TMI 1908X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the submissions made by the applicant and jurisdictional office it is observed that it is not appropriate to classify the goods in question under the Heading 8607. Applicable rate of GST - HELD THAT:- As the answer to the first question is in negative, second question cannot be considered. Scope of Advance Ruling application - HELD THAT:- The question is out of the purview of the mandate of the Advance Ruling u/s. 95(a) which provides that :- advance ruling means a decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of Section 97 or sub-section (1) of Section 100, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. Correct classification of goods - applicable rate of tax under GST Notification - HELD THAT:- The classification of the goods in question shall be the same as classified under the Customs Tariff Act, 1975 and shall be interpreted in terms of the Customs Tariff Act, 1975 for classifying any goods under the Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017. Since, the goods in question is classifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... engaged in manufacture of air-spring assemblies for Indian Railways. For this purpose the applicant imports airsprings from outside India in terms of the approval accorded by the Indian Railways. 3. The applicant has submitted application for Advance Ruling dated 26-10-2018 enclosing duly filled Form ARA-01 (the application form for Advance Ruling) along with annexures and attachment. 4. The applicant in his application sought clarification and Advance Ruling as follows - (a) Whether the airsprings imported by the applicant are classifiable under HSN Heading 8607 (i.e. parts of coach work of railway running stock) and thus covered under Entry No. 241 of Schedule-I of the GST rate notifications? (b) If the answer to (a) is in the affirmative, what is the applicable rate of tax under GST notifications? (c) If the answer to (a) is in the negative - (i) Whether the airsprings imported by the applicant s competitors is classifiable under HSN Heading 8607? (ii) What is (a) the correct classification of the airsprings imported by the applicant; and (b) the applicable rate of tax under GST notifications? (iii) Whether the applicant ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mbly is installed between the railway bogie and coach. (b) For completeness of understanding, it is expedient to point out that airspring systems in rail vehicles ensure pneumatic suspension of the vehicle body. As per RDSO, vide clause 4.1 of Schedule of Technical Requirements (STRs), each airspring module must contain the following :- S. No. Item Quantity 1. Air spring (rubber bellow) 1 2. Top Interfacing plate with bolster with [spigot] 1 3. Sealing O-Rings 2 4. Base plate 1 5. Emergency Spring 1 6. High tensile hex. socket hard screws with spring washers 4 sets c) The top and bottom metal enclosures are essentially required to contain the air within the airspring to function as a spring under airpressure. The dynamics of the working are as under :- (i) When the load in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Department cannot discriminate between similarly placed taxpayers. Department having accepted classification under Heading 8607 for similarly placed taxpayers is bound to extend the same classification to the applicant. (g) Latter HSN heading is to be preferred over earlier HSN heading. Therefore classification under HSN Heading 8607 must be adopted in preference to classification under HSN Heading 4016. (h) Without prejudice, when two competing headings exist, that classification which is beneficial to the taxpayer is to be adopted. 11. We have considered the submissions made by the applicant in their application for advance ruling, in additional submission at the time of personal hearing and as well as views of the jurisdictional office. The first issue to be decided whether airsprings imported by the applicant are classifiable under HSN Heading 8607 :- (a) As per specification provided In air suspension system, properties of air are used for cushioning effect. Enclosed pressurized air in a rubber below is called airsprings. Therefore, as per the submission, technical specifications and characteristics mentioned by the party in respect of airspring it ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 28-6-2017 that the rules for interpretation of the First Schedule of Customs Tariff Act, 1975 has to be taken as it is for interpretation of this notification. Explanation (iv) in Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017 reads as follows : The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification. From the above, it is clear that the classification of the goods in question shall be the same as classified under the Customs Tariff Act, 1975 and shall be interpreted in terms of the Customs Tariff Act, 1975 for classifying any goods under the Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017. Since, the goods in question is classified under Chapter Heading 4016 95 90 under the Customs Tariff, it has to be appropriately classified under the same chapter i.e. 4016 for levying of tax under GST not under the Chapter Heading 8607. (e) Further, as per specification provided by the applicant In air suspension system, pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certain synthetic polymers), whether or not using heat or pressure, or by high energy, radiation so that it passes from a mainly plastic state to a mainly elastic one. It should be noted that the criterion concerning vulcanization with sulphur is relevant only for the purposes of Note 4, i.e. for determining whether a substance is synthetic rubber or not. (i) Further, for appropriate classification of the goods in question, Chapter 86 is also to be examined. Section Note 2(a) to the Section XVII of Customs Tariff Act, 1975 provides that the expression parts and accessories does not apply to the articles of vulcanized rubber other than hard rubber (Heading 4016) Section Note 2(a) to the Section XVII of Customs Tariff Act, 1975 is as follows : 2. The expressions parts and parts and accessories do not apply to the following articles, whether or not they are identifiable as for the goods of this Section : (a) joints, washers or the like of any material (classified according to their constituent material or in heading 8484) or other articles of vulcanised rubber other than hard rubber (heading 4016) (j) From the above, it appears that the goods in question ..... X X X X Extracts X X X X X X X X Extracts X X X X
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