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TMI Blog2023 (3) TMI 424X X X X Extracts X X X X X X X X Extracts X X X X ..... O) specification and drawing". 2. The appellant filed an application for Advance Ruling with the Authority for Advance Ruling, Punjab (hereinafter referred to as, "AAR, Punjab"). The question for consideration was that whether roof mounted Air conditioning unit especially for use in railway coaches (manufactured as per railway design) should be classifiable under HSN- 8415 1090- IGST 28% or under HSN 8607 99 - IGST 18% as parts of Railway Coaches/ Locomotives. 3. AAR Punjab, vide its Order No. AAR/GST/PB/016 dated 16th of August,2022 ruled that the Roof Mounted Air-Conditioning unit manufactured by the applicant are classifiable under HSN Heading 8415 and the classification of the goods shall not alter on account of supply by them to Railways II. Order of the Authority for Advance Ruling: Relevant extract of the order No. AAR/GST/PB/016 dated 16thof August,2022 issued by the AAR, Punjab is reproduced hereunder:- "The Roof Mounted Air-Conditioning unit manufactured by the applicant are classifiable under HSN Heading 8415 and the classification of the goods shall not alter on account of supply by them to Railways." III. Submission of the appellant: A. The appellant submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use except in railways coaches. It is an integral/ essential part of Air conditioned railways coaches. As per note 3 to section XVII by applying "user test", the impugned goods are classifiable under HSN 8607. Discussion and Findings: 4. The primary issue that emerges from the appeal filed by the appellant is regarding the classification of the roof mounted Air conditioning unit. The AAR Punjab, vide its Order No. AAR/GST/PB/016 dated 16th of August, 2022 ruled that the Roof Mounted Air-Conditioning unit manufactured by the applicant are classifiable under HSN Heading 8415 and the classification of the goods shall not alter on account of supply by them to Railways. 5. In order to comprehend the issue under consideration it would be pertinent to reproduce the contentious entries of the tariff so that a clarity can be developed regarding the classification of the goods. The Heading 8415 reads as under:- 8415 AIR CONDITIONING MACHINES, COMPRISING A MOTOR-DRIVEN FAN AND ELEMENTS FOR CHANGING THE TEMPERATURE AND HUMIDITY, INCLUDING THOSE MACHINES IN WHICH THE HUMIDITY CANNOT BE SEPARATELY REGULATED 6. The other heading i.e. 8607 reads as under:- 8607 PARTS OF RAILWAY OR TRAMWAY ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (e) coachwork," 10. The chapter note details the various good which may fall within the scope of the said entry i.e. 8607. It is perceptible that the air conditioning machines are not mentioned in the said Chapter note. The only aspect that requires consideration here is that the said chapter note mentions the word "inter-alia" which literally means "among other things". Thus, it can be deduced that the Chapter Note (2) is not the exhaustive chapter note detailing all the goods that may fall within the ambit of the said entry. 11. Now coming to the Section note that defines the domain of the Section XVII VEHICLES, AIRCRAFT, VESSELS AND ASSOCIATED TRANSPORT EQUIPMENT of which Chapter 86 is a part. Section Note 2 of the said section provides that 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); (b) parts of general use, as defined in Note 2 to Section XV, of base metal ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t that requires attention here is that the said heading does not define the good by the manner in which the fitting is done or the particular vehicle in which the same is to be deployed. Thus, the said heading is wide enough to cover within its realm all kind of air conditioning machines irrespective of the fact that whether the same are manufactured in such a manner to be installed on a particular vehicle or a machine or even a location. It can be inferred that once the said good is classified under the heading 8415, then by virtue of the clause (e) of the Section Note 2 of the Section XVII, the same is excluded from classification under heading 8607. 15. The above line of argument is further amplified once the Explanatory notes to the Chapter 84 are referred. The Explanatory Notes to Chapter 84 under Heading 'General' and sub heading '(B) General Arrangement of the Chapter' provide that:- 1................ 2. headings 84.02 to 84.24 cover the other machines and apparatus which are classified mainly by reference to their function and regardless of the field of industry in which they are used. (emphasis supplied) 16. The said explanatory note clearly brings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e order of AAR, Punjab by adopting the line of argument that the said authority has ignored the Section Note 3 of Section XVII while dealing with the application. The said argument has been further substantiated by giving reference to the Hon'ble Supreme Court Judgment of Westinghouse Saxby Farmer Ltd vs. Commissioner of Central Excise Kolkata-2021(376) ELT 14(SC). 20. The said section note is being reproduced hereunder for reference:- 3. References in Chapters 86 to 88 to "parts" or "accessories" 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 those Chapters is to be classified under that heading which corresponds to the principal use of that part of accessory. 21. An analysis of the said section note demonstrates that the parts or accessory which are not suitable for use solely or principally with the articles of Chapter 86 to 88 are not to be included in the said chapter. On the obverse, parts or accessory which are suitable for use solely or principally with the articles of Chapter 86 to 88 are to be included ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant has cited certain judgments in his submissions. The discussions in these judgments as well as the factual matrix detailed therein, it is clear that the specific exclusion provided to HSN 84.01 to 84.79 do not apply in above judgments. Accordingly, the judgment cited by the appellant varies from the instant appeal both on law and facts. The judgments mentioned above relates to the Chapter 73 and 76 of the erstwhile Central Excise Tariff Act, 1985 and not applicable in the instant case. 26. The appellant has further adopted the contention that Air conditioned units are to be included in the coach work. It is to be noted that the expression "Coachwork" is not defined in the Customs Tariff Act, 1975. However, the dictionary meaning of the coachwork is reproduced as under:- a) the bodywork of a road or railway vehicle (Cambridge Dictionary). b) the metal outer part of a road or railway vehicle (Oxford Dictionary) c) an automobile body (Merriam-Webster Dictionary) 27. An overview of the above definitions highlights the fragility of the argument of the appellant and same does not deserve the consideration of this authority. 28. The appellant has also submitted certain Orders ..... X X X X Extracts X X X X X X X X Extracts X X X X
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