TaxTMI 
TaxTMI 
2019 (10) TMI 560
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....ds, 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 18%. The applicant has further submitted ....
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.... 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 earlier paying Central Excise Duty (i.e. full rate of central excise duty 12.5%) on Railway seats under Central Excise Act, 1944 under HS Co....
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....ied 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 and not as per trade parlance and commercial understanding. However this is so if the rules of interpretation give correct and conclusive answer. Oth....
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....ats. 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 OF HEADING 9402), WHETHER OR NOT CONVERTIBLE INTO BEDS, AND PARTS THEREOF 94011000 - Seats of a kind used for aircraft 94012000 - Seats of a kind used for motor vehicles 94013000 - Swivel seats and variable heigh....
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....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 boxes, brake gear, (d) buffers for rolling-stock; hooks and other coupling gear and corridor connections; (e) coach work." Thus, in view of the above Chapter Note, it is clear that the product 'Seats' is not covered under Chapter 86. 7. Central Board of Excise & Customs has also vide Circular No. 15/90-CX.1 dated 07.05.1990 issued from F.NO. 13/2/90-CX.1, has Clarified that seats used in Railway Coaches are correctly classifiable under heading 9401. The applicant prior to GST reg....