TaxTMI 
TaxTMI 
2021 (12) TMI 467
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....llant") 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. 2) As per the appellant, they are manufa....
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....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 the rate of tax on the goods supplied to the Indian Railways for its use in ....
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....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-stock; hooks and other coupling gear and corridor connections; (e) coachwork." 11). Further, the exclusion clause under th....
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.... --- 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). Now coming to the Chapter heading 8537, we observe that it covers "Boards, Panels, Consoles, Desks, Cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for Electrical control or the distribution of electricity, including those incorporating instruments or app....
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....ol 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 Railways, would be used for coach work only and nowhere else. Accordingly, in the light of above referred Hon'ble Supreme Court Judgment and applying the same analogy, we are of the opinion that the said "Switch Board Cabinet" merits classification under Chapter Heading 8607. 16). We further observe that in the case....
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....f 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 for use in railway coaches-classifiable under 86.07 and not under 76.11." 16.4) We also observe that, the Hon'ble Tribunal, in the case of Diesel Components Works Vs. Commissioner of C.Ex. Chandigarh {2000 (120) E.L.T. 648 (Tribunal)} has observed that "Parts of internal combustion engine used exclusively for Railway locomoti....