2019 (1) TMI 1488 – AUTHORITY FOR ADVANCE RULING, WEST BENGAL – TMI – Classification of goods – Springs of Iron and Steel for supply to the Railways – whether classified under HSN Code no. 8607 of Chapter 86 of First Schedule to the Customs Tariff Act, 1975 or under HSN Code no.7320 of Chapter 73 of the Tariff Act? – Held that:- Chapter Heading 8607 does not anywhere clearly classify Springs of Iron and Steel. It only refers to parts of railway (such as bogies, bissel-bogies, axels and wheels and parts thereof) in a general way; whereas, Chapter Heading 7320 clearly classifies springs of Iron and Steel for Railways. “Leaf-springs for Railways” are classified under Tariff Item No. 73201012 and “Coil-springs for Railways” are classified under Tariff Item No. 73209010 – since Springs of Iron and Steel, are specifically classifiable under Chapter Heading 7320, the general description under Chapter Heading 8607 is not applicable. Springs of iron and steel for railways are classifiable unde
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f the GST Act. The officer concerned raises no objection to the admission of the Application. The Application is, therefore, admitted. 2. The Applicant submits that all the items/parts supplied to the Railways are classified under HSN Code no. 8607 of Chapter 86 of First Schedule to the Customs Tariff Act, 1975, (hereinafter referred to as the Tariff Act ), to which the GST Act is aligned for the purpose of classification [as per Explanations (iii) and (iv) to Notification No. 01/2017- CT (Rate) dated 28/06/2017]. Springs of Iron and Steel for Railways, however, are classified separately under HSN Code no.7320 of Chapter 73 of the Tariff Act. The Applicant, therefore, has sought a clarification regarding appropriate classification of Springs of Iron and Steel supplied for use in Railways. 3. The two Chapters under which classification of Springs of Iron and Steel for supply to Railways are being considered, fall under two different Sections of the Tariff Act. Section XV, which covers B
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as bogies, bissel-bogies, axels and wheels and parts thereof) in a general way; whereas, Chapter Heading 7320 clearly classifies springs of Iron and Steel for Railways. Leaf-springs for Railways are classified under Tariff Item No. 73201012 and Coil-springs for Railways are classified under Tariff Item No. 73209010. In terms of Rule 3(a) of the Rules for Interpretation of Customs Tariff, as applicable to the GST Tariff, the heading which provides the most specific description shall be preferred to headings providing a more general description . In the light of the above discussion, since Springs of Iron and Steel, are specifically classifiable under Chapter Heading 7320, the general description under Chapter Heading 8607 is not applicable. Springs of iron and steel for railways are classifiable under HSN Code no. 7320 and taxable @ 18% under Serial No. 234 of Schedule III of Notification No. 1/2017- CT (Rate) dated 28.06.2017 (also refer to Circular No. 30/4/2018 dated 25/01/2018, iss
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