TaxTMI 
TaxTMI 
2019 (10) TMI 560
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....njab) are exporter of "Engineering Goods, Automotive Components, Railway Seats, Bus Seats, sports Goods Parts thereof etc" and holding GST Registration No- 03AADCS2 84 SKIZD'. The applicant states that earlier Central Excise Duty under the Central Excise Act, was being paid at full rate of central excise duty i.e. @ 12.5% on Railway seats under HSN Code No. 9401. Now, with effect from 01-07-2017 under the GST Law, they have doubt on the applicability of GST rate on the supply of Railway seats to M/s. Rail Coach Factory (M/s. RCF in short) for the reason that as per the version of M/s. Rail Coach Factory. the rate of GST on the supply of railway seats is @ 5% whereas, as per the applicant the rate of GST applicable on 'Railway Seats' is 1....
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....hat term. It is observed that the querie of the applicant in para III is related to the question of Classification of Railway Seat & Parts Thereof exclusively used by Railways (i.e. M/s. RCF) whether falls under the ambit of Section 97(2) (a) - classification of any goods or services or both. Hence, the application of the applicant is eligible for a ruling by the Punjab State Advance Ruling Authority. V. SUBMISSIONS BY THE APPLICANT The applicant vide his application in Form GST ARA - 01 dated 26.11.2018 has, inter-alia, stated that they are exporters of Engineering Goods' Automotive Components, Railway Seats, Bus Seats, sports Goods' Parts thereof etc" and holding GST Registration No- 03AADCS2 84 SKIZD' The applicant was earlie....
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.... to be done in accordance with the Harmonized System of Nomenclature (HSN). Further certain HSN appears in more than one tax rate schedule notified by the government. Hence it becomes utmost important to analyze various provisions regarding classification of goods under Goods and Service Tax law. 2. The classification is not dependent on trade parlance when the parameters are precisely laid down in the Tariff itself, in the description of the Section Notes, Chapter Notes read with the Interpretative Rules, all of which have statutory force. 3. In CCE vs Wood Polymers Ltd (1998) 97 ELT 193 (SC) = 1997 (12) TMI 634 - SUPREME COURT it was held that classification should be done as per the rules of interpretation contained in the Tariff a....
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....re clearly classify 'Railway Seats'. It only refers to parts of railway (such as bogies, bissel-bogies, axels and wheels and parts thereof) in a general way; whereas, Chapter Heading 9410 clearly classifies Seats. In terms of Rule 3(a) of the Rules for Interpretation of Customs Tariff, as applicable to the GST Tariff, "the heading which provides the most specific description shall be preferred to headings providing a More general description". 6. We have further gone through the sub-heading level details of Tariff Heading 9401 and 8607. The Scheme of Classification of Services, published by the GST Council provides the below sub-heading level details of the Tariff Heading 9401 and 8607: 9401 SEATS (OTHER THAN THOSE ....
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....d parts thereof : 86073010 --- Buffers and coupling devices 86073090 --- Other - Other : 86079100 -- Of locomotives 860799 -- Other : 86079910 --- Parts of coach work of railway running stock 86079920 --- Parts of tramway, locomotives and running stock 86079930 --- Hydraulic shock absorbers for railway bogies 86079990 --- Other Further, Chapter Note 2 of Chapter 86 of the Indian Customs Tariff states as under: "2. Heading 8607 applies, inter alia, to: (a) axles, wheels, wheel sets (running gear), metal tyres, hoops and hubs and other pads of wheels; (b) frames, under frames, bogies and bissel-bogies; (c) axle box....