2021 (12) TMI 467

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....(hereinafter referred to as the "appellant") against the Advance Ruling Order No. UP ADRG 75/2021 dated 19.03.2021 issued by the Authority for Advance Ruling, Uttar Pradesh. At the outset, we would like to make it clear that the provisions of both the CGST Act and the UPGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the COST Act, 2017 would also mean a reference to the same provisions under the UPGST Act, 2017 and vice versa. Brief Facts of the Case 1) The appellant is a partnership firm operating as M/a. Prag Polymers, B-1 & A-40/41, Talkatora Industrial Estate, Lucknow and registered with GST department under GSTIN: 09AAVFP5915G120....

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....ion before us. Grounds of appeal submitted by the appellant:- 7) The appellant made the following grounds for filing of appeal: 7.1) As per tariff interpretation product ought to be classified under tariff HSN 86 as it is exclusively made as per specification provided by RDSO and other than the Indian Railways. 7.2) In order to justify the classification of the product under HSN 8537, the Advance Ruling Authority has wrongly applied and understood the circular No. 30/04/2018-GST dated 25/01/2018 issued by the Government of India, Ministry of Finance for the purposes of classification of goods specially when the circular does not make any specification/description with regard to the classification of goods but it only specifies t....

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.... classification under Chapter Heading 8607 of the Customs Tariff Act, 1975, as parts of railways. 10) As regard to the classification under Chapter 86, we observe that the Chapter 86 covers "Railway or Tramway Locomotive, Rolling- Stock and Parts thereof; Railway or Tramway Track Fixtures and Fittings and Parts thereof; Mechanical (Including Electro-Mechanical) Traffic Signalling Equipment of all kinds". Further, as per Chapter Note 2 of Chapter 86; "2. Heading 8607 applies, inter alia, to: (a) axles, wheels, wheel set (running gear), metal tyres, hoops and hubs and other parts of wheel; (b) frames, under frames, bogies and bissel-bogies; (c) axle boxes, brake gear; (d) buffers for rolling-sto....

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.... 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, as per Chapter Note 3 of chapter 86 "Reference in Chapter 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 or 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 or accessory". 13)....

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....h an article in Chapter 86 cannot be taken to a different Chapter as the same would negate the very object of group classification. This is made clear by Note 3. 37. It is conceded by the Revenue that the relays manufactured by the appellant are used solely as part of the railway signaling /traffic control equipment. Therefore, the invocation of Note 2 (f) in Section XVII, overlooking the "sole or principal user test" indicated in Note 3, is not justified." Here, we observe that though the Advance Ruling Authority differs with the appellant in the classification of the product in question, however the Authority was in unison with the appellant that the said "Switch Board Cabinet" which are specifically designed for Indian Railwa....

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....erved that "Sanitary wares are also designed for fitment into the coach and they would be classifiable under Heading 86.07". 16.2) Similarly, in the case of Sunflex Auto Parts Vs. Commissioner of C.Ex. (Appeals) Mumbai-II (2004 (171) E.L.T. 188 (Tri- Mumbai), it was observed by the Hon'ble Tribunal that "Parts made out of rubber and metal bonded together as per specification of Indian Railway and meant for use solely and exclusively for them, classification under Sub-heading 8607.00 of Central Excise Tariff." 16.3) Further, in the case of Mechanico Enterprises Vs. Commissioner of C.Ex, Calcutta-II, {1998 (104) E.L.T 345 (Tribunal)}, the Hon'ble Tribunal has observed that "Aluminum water tanks, principally and solely designed f....