TaxTMI 
TaxTMI 
2019 (2) TMI 192
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.... to pronounce advance ruling as it falls under ambit of the Section 97(2) (a) and it is given as under: a. classification of any goods or services or both; Further, the applicant being a registered person, GSTIN is 08AFOPB8919C1ZE, as per the declaration given by him in Form ARA-01, the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above declarations, the application is 'admitted' to pronounce advance ruling. 1. SUBMISSION OF THE APPLICANT: a. The applicant is a trader in Air dryer which is used by Railway in breaking system of locomotives. The applicant has received a purchase order number 69185017150035 dated 14.03.2018 from Western Railway for "Air ....
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....mportant to note here that the item supplied by the applicant can be used only for the purpose of railway locomotives. Based on this the most appropriate entry for the classification seems to be 86072100. g. The Applicant's opinion:- 1. The most appropriate chapter heading for classification of the goods in question seems to be chapter 86 based on its use. Still if we go by the rules of interpretation for tariff classification, then the rule 3 applies. Rule 3 is reproduced as below:- Rule 3: When by application of Rule 2 (b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be affected as follows: (a) The heading which provides the most specific descr....
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.... Tariff Classification General Rules of Interpretation, chapter 86 seems for the purpose of classification. 4. Taxability These items fall under Chapter 86 of the Customs Tariff Act, 1975 under heading 8607 which reads as follows:- PARTS OF RAILWAY OR TRAMWAY LOCOMOTIVES OR ROLLING-STOCK Further, item fall under subheading 860721000 which reads as under: "Air brakes and parts thereof The item mentioned as above is used in the Air Brakes of locomotives used by railway only. 5. For heading 8607 there is one entry of taxation in notification no. 01/2017 Central Tax (Rate) dated 28.06.2017, as amended from time to time; all of them are given below:- Chapter/Heading/Sub-heading/Tariff item Description of Goods CGST ....
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....on for advance ruling along with few additional documents and requested that the case may be decided at the earliest. 4. COMMENTS FROM THE JURISDICTIONAL OFFICER: The jurisdictional officer, Deputy Commissioner, Circle-D, Jodhpur, SGST Rajasthan has submitted that the rate of Tax on Air Dryer is 18% in HSN code 8421. 5. FINDINGS, ANALYSIS & CONCLUSION: a. We find that, the applicant has received a purchase order number 69185017150035 dated 14.03.2018 from Western Railway for "Air Dryer complete with final filter for MEMU DMC" (02quantity). b. The definition of Air dryer as per Wikipedia means: A compressed air dryer is used for removing water vapour from compressed air. Compressed air dryers are commonly found in a w....
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....braking systems. d. Further, as per the description under the HSN code reproduced below:- (Centrifuges, Including Centrifugal Dryers; Filtering or Machinery and Apparatus, For Liquids or Gases) -Centrifuges, including centrifugal dryers: 8421.11 Cream Separators 8421.12-Clothes-dryers 8421.19-Others -Filtering pr purifying machinery and apparatus for liquids: 8421.21--for filtering or purifying water 8421.22 -- for filtering or purifying beverages other than water 8421.23--OiI or petrol-filters for internal combustion engines 8421.29 -- Other -Filtering or purifying machinery and apparatus for gases: 8421.31 -- lntake air filters f....
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.... • other goods [falling in any other chapter], would attract the general applicable GST rates to such goods, under the aforesaid notifications, even if supplied to the railways." Since, the Circular No. 30/4/2018-GST Dated 25.01.2018 issued by Tax Research Unit, Department of Revenue categorically states that if any good is supplied to railways under chapter 86 then it attracts GST @ 5% with no refund of unutilised input tax credit and in case of supply of goods falling under any other chapter, the same would attract applicable GST rate as leviable on such goods under the relevant notifications even if supplied to railways. f. Further, in the light of the fact classification of 'Air Dryer' (HSN 8421) has already been finalised....