AI Drafter 
TaxTMI 
TaxTMI 
2019 (11) TMI 158
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....N 29AAACI5571P1ZX filed an application for advance ruling on 28-05-2018 under Section 97 of CGST Act, 2017, KGST Act, 2017 & IGST Act, 2017 read with rule 104 of CGST Rules 2017 & Rule 104 of KGST Rules 2017, in FORM GST ARA-01. The applicant has also enclosed a copy of challan for Rs. 10,000/- bearing CIN number SBIN18052900306121, Dt. 25-05-2018 for having made the payment. 2. The applicant is involved in the manufacture and supply of a wide range of pressure sensitive adhesive tapes. They import Polyimide Film manufactured by Dupont, USA, under the brand name "KAPTON" and coat Silicone Adhesive over the same. The final product is known as "Kapton Polyimide Adhesive Tape" which is used in various industries and also by the Indian Railw....
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....s railway locomotives". PERSONEL HEARING / PROCEEDINGS HELD ON 28/06/2018 6. The authorized representative Smt. Annapurna Kabra, Chartered Accountant, appeared for personal hearing proceedings and submitted written arguments inter alia stating as under: 6.1 The applicant is involved in the manufacture and supply of a wide range of pressure sensitive adhesive tapes. They import Polyimide Film manufactured by Dupont, USA, under the brand name "KAPTON" and coats Silicone Adhesive over the same. The final product is known as "Kapton Polyimide Adhesive Tape" which is used in various industries and also by the Indian Railways. 6.2 The applicant is classifying the pressure sensitive polyimide (KAPTON) film adhesive insulation tape unde....
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.... @ 5%. Therefore, the applicant pleads before the authority to clarify the rate of tax applicable to the product "Kapton Polymide Adhesive Tape" when supplied to Railways as part of Locomotives. 7. The applicant states that Kapton Polyimide Film such as Kapton tapes, consists of a polyimide film and adhesive system having the property of an insulator that make it the ultimate in high temperature tapes. Polyimide tape has the ability to maintain its excellent physical, mechanical, and electrical properties over a wide temperature range and performs as well as any product at high temperatures. Polyimide tapes have excellent dielectric strength and remove cleanly leaving no residue. Because of these properties, Polyimide tape such as Kapton....
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....licant states that Industrial laminated sheets having insulating properties have been ordered to be classifiable under heading 8546.00 by the Supreme Court in CCE vs. Bakelite Hylam Ltd. 1997 (14) RLT 204 = 1997 (3) TMI 598 - SUPREME COURT. Classification of electrical insulation tape was specifically considered by the Tribunal in Chetna Polycoats (P) Ltd. v. CCE = 1988 (7) TMI 175 - CEGAT, NEW DELHI. Classification under the Customs Tariff of such goods was considered in CCE v. Kinjal Electricals Pvt. Ltd. = 1987 (8) TMI 344 - CEGAT, NEW DELHI. Both decisions have held that the goods to be classifiable under heading 8546.00. Heading 8546.00 is more specific and more appropriate to the goods in question. FINDINGS AND DISCUSSION 11. We....
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....y of specifications in the electrical, electronics, printing, packaging and leather industry.' This bears testimony that the applicant is engaged in manufacture of adhesive tapes for a wide range of industrial uses, one of the users being Railways. 14. The applicant is already classifying this pressure sensitive polyimide (KAPTON) film adhesive insulation tape under the heading 8546-Electrical Insulators of any material which attracts GST @ 18%. However, the applicant contends that there exists another competing entry covering parts to the railway locomotives in Heading 8607 - Parts of Railway or tramway locomotives or rolling stock; such as Bogies, bissel-bogies, axles and wheels, and parts thereof which attracts GST @ 5%. The conte....
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...... (h) .............. (i) .............. (i) .............. (k).............. (l) .............. Further, Note 3 states as under: "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 of 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". On cursory reading of the above, the goods under Chapter 85 are not covered under Chapter 86. Even by the admission of the applicant in their catalogue, the pressure ....