In Re Resistoflex Dynamics Pvt. Ltd (GST AAR Uttar Pradesh)
(a) Whether the air-springs imported by the Applicant are classifiable under HSN heading 8607 (i.e. parts of coach work of railway running stock) and thus covered under Entry No. 241 of Schedule-I of GST rate notifications?
It will not be appropriate to classify air springs under 8607.
(b) if the answer to (a) is in affirmative, what is the applicable rate of tax under GST notification?
Answer to the first question is negative.
(c) if the answer to (a) is in the negative
(i) Whether the air springs imported by the Applicant’s competitors is classifiable under HSN heading 8607?
The goods in question are most suitably classifiable under Tariff item 40169590.
(ii) What is (a) the correct classification of the air-springs imported by the Applicant and (b) the applicable rate of tax under GST notification?
The applicable rate of GST for the heading 40169590 under GST Notf. will be 18% (9% CGST + 9% SGST).
(iii) Whether the Applicant can also be eligible for classifying imported goods under HSN heading 8607 like its competitors?
Question raised is out of purview of the mandate of Advance Ruling U/s 95(a).
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, (AAR Uttar Pradesh)
Sub:- GST ACT, 2017 — Advance Ruling U/s 98 — liability to tax under GST Act in respect to application dated 26.11.2018 from M/s Resistoflex Dynamics Pvt. Ltd, Noida, Uttar Pradesh — Order— Reg.
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1) M/s Resistoflex Dynamics Pvt. Ltd, B-103, Sector- 5, Noida, Uttar Pradesh, 201301 (here in after called the applicant) is a registered assessee under GST having GSTN: 09AACCR3766P1ZN.
2) The applicant is a company inter alia engaged in manufacture of air-spring assemblies for Indian Railways. For this purpose the Applicant imports air-springs from outside India in terms of the approval accorded by the Indian Railways.
3) The Applicant has submitted application for Advance Ruling dated 26.10.2018 enclosing duly filled Form ARA-01(the application form for Advance Ruling) along with annexures and attachment.
4) The Applicant in his application sought clarification and Advance Ruling as follows: —
a) Whether the air-springs imported by the Applicant are classifiable under HSN heading 8607(i.e. parts of coach work of railway running stock) and thus covered under Entry No. 241 of Schedule – I of the GST rate notifications?
b) If the answer to (a) is in the affirmative, what is the applicable rate of tax under GST notifications?
c) If the answer to (a) is in the negative
i) Whether the air-springs imported by the Applicant’s competitors is classifiable under HSN heading 8607?
ii) What is (a) the correct classification of the air-springs imported by the Applicant and (b) the applicable rate of tax under GST notifications?
iii) Whether the Applicant can also be eligible for classifying imported goods under HSN heading 8607 like its competitors?
5) The application for advance ruling was forwarded to the Jurisdictional GST Officer to offer their comments/views/verification report which are received in this office vide letter C.No. 20-CGST/Advance Ruling/R-07/D-II/N/01/2019/1193 dated 05.02.2019.
6) The applicant was granted a personal hearing on 15.02.2019. Mr. Monish Panda, Advocate, Authorized representatives on behalf of applicant appeared for hearing. During the personal hearing they submitted/stated:-
that they have already submitted written submission in their letter dated 26/11/18 and they would like to reiterate the same. They would like to submit some technical write- up on the goods in question vide letter dated 06/02/19, which is taken on record. During the P.H., he has also shown the RSS of ‘goods’ for better understanding of issue. He also submitted the compilation of relevant judgments quoted in their submission.
DISCUSSION AND FINDING
7) We have gone through the submissions made by the applicant and examined the detailed explanation submitted by them. We observe that the question sought by the applicant is:-
a) Whether the air-springs imported by the Applicant are classifiable under HSN heading 8607(i.e. parts of coach work of railway running stock) and thus covered under Entry No. 241 of Schedule – I of the GST rate notifications?
b) If the answer to (a) is in the affirmative, what is the applicable rate of tax under GST notifications?
c) If the answer to (a) is in the negative
i) Whether the air-springs imported by the Applicant’s competitors is classifiable under HSN heading 8607?
ii) What is (1) the correct classification of the air-springs imported by the Applicant and (2) the applicable rate of tax under GST notifications?
iii) Whether the Applicant can also be eligible for classifying imported goods under HSN heading 8607 like its competitors?
8) The Applicant in its application submitted the details of the services are as follows:-
a) It has submitted that the air-spring assemblies supplied by the Applicant under these Purchase Order and technical specifications of RDSO are basically meant to be fitted in the railways coaches. These perform the suspension function for which purpose the air-spring assembly is installed between the railway bogie and coach.
b) For completeness of understanding, it is expedient to point out that air-spring systems in rail vehicles ensure pneumatic suspension of the vehicle body. As per RDSO, vide clause 4.1 of Schedule of Technical Requirements (STRs), each air-spring module must contain the following:-
