In Re: M\/s. Blackstone Diesels
GST
2019 (2) TMI 192 – AUTHORITY FOR ADVANCE RULING, RAJASTHAN – 2019 (21) G. S. T. L. 184 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, RAJASTHAN – AAR
Dated:- 18-12-2018
AAR No. RAJ\/AAR\/2018-19\/26
GST
SHRI J.P. MEENA AND SHRI PANNA LAL
\nPresent for the Applicant: Shri Mukesh Khandelwal, CA, (Authorised Representative)
\nNote: Under Section 100 of the CGST\/RGST Act 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST\/RGST Act 2017, within a period of 30 days from the date of service of this order.
\nThe Issue raised by M\/s. Blackstone Diesels {hereinafter the applicant} is fit to pronounce advance ruling as it falls under ambit of the Section 97(2) (a) and it is given as under:
\na. classification of any goods or services or both;
\nFurther, the applicant being a registered person, GSTIN is 08AFOPB8919C1ZE, as per the declaration given by him in Form ARA-01, the<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n m of locomotive and Repair\/ Spare Kit supplied to railway. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n if one of them gives a more complete or precise description of the goods. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n as Bogies, bissel-bogies, axles and wheels, and parts thereof = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ur from compressed air. Compressed air dryers are commonly found in a wide range of industrial and commercial facilities. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n rol-filters for internal combustion engines = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n no refund of unutilised input tax credit and in case of supply of goods falling under any other chapter, the same would attract applicable GST rate as leviable on such goods under the relevant notifications even if supplied to railways. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" In Re: M\/s. Blackstone DieselsGST2019 (2) TMI 192 – AUTHORITY FOR ADVANCE RULING, RAJASTHAN – 2019 (21) G. S. T. L. 184 (A. A. R. – GST)AUTHORITY FOR ADVANCE RULING, RAJASTHAN – AARDated:- 18-12-2018AAR No. RAJ\/AAR\/2018-19\/26 GSTSHRI J.P. MEENA AND SHRI PANNA LAL Present for the Applicant: Shri Mukesh Khandelwal, CA, (Authorised Representative) Note: Under … Continue reading “In Re: M\/s. Blackstone Diesels”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-16550","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/16550","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16550"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/16550\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16550"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16550"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16550"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nd. As per the system of classification of HSN Codes the items related to railway locomotives fall under chapter 86. The relevant section heading 8607 reads as follows:-
\n 8607 PARTS OF RAILWAY OR TRAMWAY LOCOMOTIVES OR ROLLING-STOCK
\n Relevant classification entry under that section is as follows:- 86072100 :-
\n Air brakes and parts thereof
\n Thus, as per the use based classification as it is used for railways, the classification can be identified under this heading of chapter 86.
\ne. However the vendor of the assessee from whom the applicant purchased the material classifies the same under chapter 84 under following heading:-
\n Filtering or purifying machinery and apparatus for gases 84213990. This classification is based on the assertion that the air dryer and filter is a mechanical appliance classifiable under above heading.
\nf. It is important to note here that the item supplied by the applicant can be used only for <\/p>\n
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\n (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
\n (c) When goods cannot be classified by reference to 3 (a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.
\n2. As per these rules in case if there is a situation where any commodity falls under two or more heading and where the most specific description also could not be identified then as per rule 3(c) of rules or interpretation as described above the heading which occurs later in the numerical order should be used for classification.
\n3. Thus by virtue of the classification base<\/p>\n
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\n2.5
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\n6. Further, Vide circular No. 30\/04\/2018 dated 25.01.2018 Govt, has clarify that … goods classified under Chapter 86, supplied to the railways attract 5% GST rate with no refund of unutilised input tax credit.
\n7. The Applicant purchases above mentioned goods form Manufacturer of such goods. They have supplied goods under HSN Code 84213990 (Centrifuges, Including Centrifugal Dryers; Filtering or Purifying Machinery and Apparatus, For Liquids or Gases) and charging GST @ 18%.
\n8. The item supplied by the applicant is part of the Air Breaking System of Locomotive used by Railway Only. They are not to be used independently anywhere.
\n2. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT
\nApplicant has sought ruling to be pronounced under section 97(2) (a) of the CGST Act 2017, on the following question:
\nTax rate on “Air dryer complete with final filter for used in breaking system of locomotive supplied to<\/p>\n
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\n The process of air compression concentrates atmospheric contaminants, including water vapour. This raises the dew point of the compressed air relative to free atmospheric air and leads to condensation within pipes and the compressed air cools downstream of the compressor.
\n Excessive water in compressed air, in either the liquid or vapour phase, can cause a variety of operational problems for users of compressed air. These include freezing of outdoor air lines, corrosion in piping and equipment, malfunctioning of pneumatic process control instruments, fouling of processes and products, and more.
\n There are various types of compressed air dryers. Their performance characteristics are typically defined by the dew point.
\nc. Usage of Air dryer as per Wikipedia are as:
\n a. Drying air for use in commercial or industrial processes that demand dry air:
\n b. Telecom<\/p>\n
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\n 8421.29 Other
\n -Filtering or purifying machinery and apparatus for gases:
\n 8421.31 lntake air filters for internal combustion engines.
\n 8421.39-other
\n -Parts:
\n 8421.91 of Centrifuges, including centrifugal dryers
\n 8421.99 Others
\nThis heading covers:
\n(I) Machines which, by the use of centrifugal force, completely or partly separate substances according to their specific gravities or which remove the moisture from wet substances.
\n(ii) Filtering or purifying machinery and apparatus for liquids or gases, other than eg. Filter funnels, milk strainers, strainers for filtering paints(generally chapter 73)
\nOn going through HSN code 8421, it is observed that the Air dryers, which is used for removing water vapour from compressed air or to remove the moisture from wet substances has been classified under 8421 ibid.
\nFurther, M\/S Trident Pneumatics Pvt. Ltd., Coimbatore is a manufacturer and supplier of “Air Dryer (LD2000132) Lo<\/p>\n
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\nf. Further, in the light of the fact classification of 'Air Dryer' (HSN 8421) has already been finalised at the supplier's end who also happens to be manufacturer of the goods in question i.e. M\/s. Trident Pneumatics Pvt. Ltd., Coimbatore, which is evident from the tax invoice, dated 27.03.2018. The same goods without any modification\/ processing are being further supplied to the Western Railways by the applicant. Hence it is clear that HSN of goods do not merits any change in classification merely due to the fact that the goods in question are being supplied to the Indian railways.
\n6. In view of the foregoing, we rule as under:-
\nRULING
\n'Air Dryer complete with final filter for used in breaking system of locomotive' has been rightly classified by <\/p>\n
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