Case Law Details
In re Daulatram Engineering Services Pvt. Ltd. (GST AAR Madhya Pradesh)
Whether Roof Mounted AC Package Unit manufactured as per the specifications and drawings issued by organizations owned and operated by Ministry of Railways of India/Research Design and Standards Organisation (RDSO) working under Ministry of Railways of India is covered under chapter Heading 3607 of GST Tariff ?
We observe that in case of applicant, on the same issue, the Hon’ble Commissioner, CGST & Central Excise, Bhopal vide Order in Original No. 17/Pr.Commr/CEX/BPL III/2019 dated 26.08.2019 decided the case in favour of applicant and hold that the Roof mounted AC package unit is appropriately classified under chapter 86 of the Central Excise Tariff Act and leviable excise duty @6% vide Notification No.12/2016-CE dated 01.03.2016. We further observe that Authority for Advance Ruling Uttar Pradesh, Lucknow vide their order No.56 dated 14.02.2020 in case of M/s prag Polymers, Lucknow ruled that Roof mounted AC package unit is falls under chapter 86.07 of the GST Tariff.
We observe that the Roof Mounted AC package Unit would be manufactured by the applicant, strictly as per the specification and design provided by the Indian Railways (RDSO) and specially meant to be solely used in Railway coaches and nowhere else. We further observe that as per Section Notes and Chapter Notes, parts suitable for use solely or Principally with the articles of those chapters are covered under chapter 86 to 88. We further observe that the ratio of the above referred judgement is squarely applicable in the instant case that the Roof mounted AC package unit are the interior fittings inside the coach and they are suitably classifiable under tariff heading 86079910 i.e. “Parts of Coach work of railways running stock”.
Accordingly we are in unison with the applicant and the jurisdictional GST officer that the classification of the Roof mounted AC package Unit manufactured as per the specific design and layout provided by the railways (RDSO) and supplied to the Indian Railways only and no where else, falls under chapter 86.07 of the GST Tariff.
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