Electrical insulating tape for locomotives stays under Heading 8546, not as railway parts under Heading 8607.

Kapton polyimide film adhesive tape supplied for use in railway locomotives was held classifiable under Heading 8546 as an electrical insulator, not as a part of railway locomotives under Heading 8607. The ruling applied Chapter Note 2 to Section XVII, which excludes electrical machinery and equipment of Chapter 85 from vehicle parts, and Chapter Note 3, which limits Heading 8607 to goods suitable for use solely or principally with Chapter 86 articles. Because the tape was marketed for wider industrial use and retained its primary insulating character, it could not be treated as a railway part. The applicable GST rate was stated to be 18%.

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Issues: Whether Kapton Polyimide Film Adhesive Tape supplied to Indian Railways for use in railway locomotives is classifiable under Heading 8607 as parts of railway locomotives, or under Heading 8546 as electrical insulators, and the corresponding rate of GST.

Analysis: The product was found to be manufactured and marketed for a wide range of industrial uses and not exclusively for railways. Although it was used in locomotives as an insulator, its character remained that of an electrical insulating tape. Chapter Note 2 to Section XVII excludes electrical machinery or equipment of Chapter 85 from the scope of "parts" of vehicles and transport equipment, and Note 3 permits classification as parts only where the article is suitable for use solely or principally with the Chapter 86 goods. Since the tape was not solely or principally for railway locomotives and its primary function was insulation, it could not be treated as a part under Heading 8607.

Conclusion: The product is classifiable under Heading 8546 as electrical insulators and not under Heading 8607; the applicable GST rate is 18%, against the applicant.

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