TaxTMI 
TaxTMI 
2021 (11) TMI 265
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.... expression 'GST Act' would be a common reference to both CGST Act and TGST Act. 3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of Rs. 5,000/- for SGST and Rs. 5,000/- for CGST towards the fee for Advance Ruling. The Applicant has declared that the questions raised in the application have neither been decided by nor are pending before any authority under any provisions of the GST Act. 4. Brief facts of the case: The applicant Medha Servo Drives are manufacturers of electronics equipments for locomotives and coaches for Indian Railways and Metro Railways. They have submitted that they were issued purchase order from Integrated coach factory Chennai for supply of multiple items. Some of these items are manufactured by the applicant and some of them are procured for supply to the coach factory. In the opinion of the applicant majority of the items supplied are taxable at the rate of 18%. The relevant terms of the contract are: a. The invoice would contain HSN code for each item indicating GST rates separately (point 9 of the purchase order). ....
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....n a week lest it would be construed that these issues are not pending before them and the application would be processed under any of the provisions of the GST Act, 2017 and also requested to offer his/he comments on the points raised in the application, However case was admitted even though Officer have not replied by the grounds of the draft letter, Therefore, Personnel hearing given to the applicant. 6. Personal Hearing: The Authorized representatives of the unit namely Sri K. Lokesh, CA & AR attended the personal hearing held on 06-08-2021. The authorized representatives reiterated their averments in the application submitted and contended as follows: 1. That they are making supplies to integrate at Integral Coach Factory, Chennai by way of design, development, manufacture, supply, testing and commissioning of 25 KV AV microprocessor controlled IGBT. 2. That as per the terms of the agreement the payment is to be released for complete rake set and not for part supplies. Therefore they seek clarification as to whether their supply comes under composite supply or mixed supply or supply of individual component parts. 3. Further that all these compon....
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....gle price where such supply does not constitute a composite supply. Illustration: A supply of package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependant of any other. It shall not be a mixed supply if these items are supplied separately; Similarly Composite supply is defined in the CGST Act in Section 2(30) as follows: "Composite supply" means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply. Illustration: Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply. As seen from the above definitions a composite supply is essentially a naturally bundled supply where two or more different supplies invariably exist along with each other. As aga....
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.... In this connection it is observed notification 05/2017 Dt.28-06-2017 has enumerated "parts of Railway or Tramway Locomotives or rolling stock; such as Bogies, bissel-Bogies, Axles & Wheels, and parts thereof" under tariff heading 8607. The rules of interpretation of the 1st Schedule to the Customs Tariff Act 1975 apply to the interpretation of this notification. Thus classification of parts is subject to notes in the Chapters of HSN. The Hon'ble Supreme Court of India in CCE Vs Insulation Electricals (2008) 224 ELT 512 has held that a part is an essential component of the whole without which the whole cannot function. Thus if the goods supplied by the applicant in the purchase order have to be treated as "parts of Railway or Tramway" they should qualify for all the above conditions Applying principle of Noscitur a sociis it is seen from the purchase order none of the goods supply fall under this entry. They are also not essential component without which the whole cannot function. Therefore the supplies made under the referred purchase order to Integrated Coach Factory, Chennai do not fall under entry 8607. B. Query relating to M/s. KBJNL: The applicant has entered i....