TaxTMI 
TaxTMI 
2022 (3) TMI 1142
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.... Rajasthan (hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2) (a) given as under: (a) Classification of any goods or services or both; A. GIST OF SUBMISSION AND INTERPRETATION OF THE APPLICANT: * The applicant M/s. Ekam, (Prop. Sh. Vinay Singh Ramat) is registered under the GST Act 2017 having GSTIN No. 08BLRPR3768M1ZZ under the GST regime in the State of Rajasthan and is desirous to supply the following goods (hereinafter referred as 'the subject goods' wherein such expression refers to either one or all the goods depending on the context) to Indian Railways :- a) Non-metallic Sleeves b) Glass Fiber Cords c) Spiral Tubes d) Polyamide [Nomex] PA Vlies e) Any other goods as may be supplied from railways from time to time based on their own specifications. * The subject goods will be used for protection of wires in locomotives/coaches /trams and metro i.e. railway industry / locomotive industry. Some of the goods will also be used in locomotives for electrical insulation purposes. The goods do not have any other intended use except in railways as they will be manufactured on the basis of specification....
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.... resin and on curing forms a hard support for coil to give vibration free overhang. SPIRAL TUBES: They are. used on cutting/joints in cables to protect from moisture and loose connection / contracts. It is used on cable ends for easy working. POLYAMME [NOMEX] PA VLIES: It is used for filling the material between inner spaces of the coils. It absorbs resin more than 400% at the time of CPI and provides vibration free and gapless insulation. OUR INTERPRETATION ON CLASSIFICATION 1) There are only a few vendors in the Indian market who supply the subject goods to Indian Railways anil to the best of knowledge of the applicant, they had been classifying the subject goods under Heading 8607 as contained vide (S.No.205G Sch.II) under Schedule II of the rate notification which covers "Parts of railway or tramway locomotives or rolling-stock; such as Bogies, bissel-bogies, axles and wheels, and parts thereof". 2) In our opinion, the said classification is correct as:- a. The goods, by its very nature, cannot be utilized for any purpose other than railways, or rolling stock and needs to be utilized in conjunction with the parts of a train/ Metro coaches/ rolling stock. b. The goods, ....
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.... f) The subject goods are solely/ principally to be used in the railway industry and clearly satisfy the conditions specified for classification under Heading 8607. g) On a practical level, due to the unique functionality and usage of the subject goods with respect to ensuring safety in the locomotive industry, the subject goods cannot be utilized in conjunction with any other mode of transport other than locomotives/coaches/trams/metro. The goods per se cannot be utilized independently or with any other mode of transportation apart from trains; as the goods proposed to be supplied can only function once used in conjunction with the operating system of the train coach and metro bogey. h) The goods are to be manufactured as per QAP (Quality Assurance Programme) including manufacturing, material and process approved by Indian Railways. These products are not commercially viable for sales elsewhere as they are specially designed by Indian Railways and can be used only in such industry as provided in the scope of use in the product specification/ drawings. Essentially, it is part of railway or tramway locomotives or rolling stock which is specifically covered under Note 2 of Chapte....
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....ct goods to be classified as 'PARTS' of Rolling Stock as it complies with the specified conditions. The goods proposed to be supplied are required precisely for protection of wires & are suitable for usage solely or principally with the articles of Chapters 86 (i.e. Railway or Rolling stock); and they are not covered in goods mentioned in Note 2 to Section XVII. In light of the aforementioned submissions, having elaborated upon the constitution and working of the subject goods as well as the legal framework in place with respect to the classification of the subject goods, we are of the view that the subject goods are appropriately classifiable under Heading 8607. B. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT:- Whether goods proposed to be supplied by the applicant to Indian railways, should be classified as "parts of railway or tramway locomotives or rolling stock; such as Bogies, bissel-bogies, axles and wheels and parts thereof (Viz under Heading 8607) for the purposes of levy of GST in terms of Section 9(1) of Central Goods and Services Act 2017 read with notification No. 01/2017-Central Tax (Rate) dated 28.06.2017 as amended by notification No.14/2019-Central T....
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....s and accessories" do not apply to the following articles, whether or not they are identifiable as for the goods of this Section: (a) joints, washers or the like of any material (classified according to their constituent material or in heading 8484) or other articles of vulcanised rubber other than hard rubber (heading 4016); (b) parts of general use, as defined in Note 2 to Section XV, of base metal (Section XV), or similar goods of plastics (Chapter 39); (c) articles of Chapter 82 (tools); (d) articles of heading 8306; (e) machines and apparatus of headings 8401 to 8479, or parts thereof, other than the radiators for the articles of this Section, articles of heading 8481 or 8482 or, provided they constitute integral parts of engines and motors, articles of heading 8483. (f) electrical machinery or equipment (Chapter 85); (g) articles of Chapter 90; (h) articles of Chapter 91; (ij) arms (Chapter 93); (k) lamps or lighting fittings of heading 9405; or (l) brushes of a kind used as parts of vehicles (heading 9603). 3. 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 ....
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....al provisions and fact submitted by the applicant, it emerges that impugned goods should firstly be classified appropriately as per its nature and technical specification. For this purpose, lets analysis the nature of 'the subject goods'. 8. As stated by the applicant in their written submission, the constitution and functionality of 'the subject goods' are as under:- (i) NON METALLIC SLEEVES: are used for cable bunching, harnessing & bundling. It also protects wires and cables from wear and tear caused due to mechanical abrasions in the railway coaches. Types of Non Metallic Sleeves:- (a) Fiber Glass Flat Hose (b) EIT Exp. Insulation Tube (c) Cable Jacket (d) SD Sleeve. On gone through the above constitution and functionality of the Non-Metallic Sleeves provided by the applicant, neither it reveals that these goods are specifically used only for railway or tramway locomotives nor it constitute the part of 'railway or tramway locomotives, rolling stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signaling equipment of all kinds'. As the goods used for....
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....pless insulation. On gone through the detail provided by the applicant of the POLYAMIDE [NOMEX] PA VLIES, it cannot find out that which portion of railway or tramway locomotives POLYAMIDE [NOMEX] PA VLIES are used and how it become a part thereof. Thus, neither it reveals that these goods are specifically used only for railway or tramway locomotives nor it constitute the part of 'railway or tramway locomotives, rolling stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signaling equipment of all kinds'. As the goods used for filling the material between inner spaces of the coils and for vibration free and gapless insulation may be classified other than chapter 86 therefore, in absence of technical specifications/constitution/ properties, we are not in position to classify the goods whether it falls under chapter 86 or otherwise. (v) Any other goods as may be supplied from railways from time to time based on their own specifications. On gone through the detail provided by the applicant of the Any other goods as may be supplied from railways from time to time based on their own speci....