In re Concord Control Systems Private Limited (GST AAR Uttar Pradesh)
Q-1 What will be the HSN Code and GST Rate on Supply of Bellow Duct to RDSO Ministry of Railways for use in Indian Railways Coaches?
Ans- “Bellow Ducts” merits Classification under HSN 8424 Attracting GST @ 18% (CGST 9% &SGST 9%)
Q-2 Whether the Supply of “Bellow Ducts” to RDSO Ministry of Railways for use in Indian Railways Coaches will fall under the HSN Code 8607 having GST Rate of 12% or will it fall under the HSN 8424 having GST RATE OF 18%.
Ans- The supply of “Bellow Ducts” to RDSO Ministry of Railways for use In Indian Railways Coaches will fall under the HSN 8424 having GST Rate of 18%.
AAAR ORDER : GST on Bellow Ducts manufactured as per specific design provided by Railways
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, UTTAR PRADESH
ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 & UNDER SECTION 98(4) OF THE UPGST ACT, 2017
1. M/s Concord Control Systems Private Limited, 202, 2nd Floor, Garden View Apartment, 8 Rana Pratap Marg Hazratganj, Lucknow, UP -226001 (here in after referred to as the applicant) is a registered assessee under GST having GSTN: 09AAEC2602B1ZC.
2. The applicant is engaged in supply of “Bellow Duct” made of Meta Armid/Para Armid Fabric with Silicon Rubber Coating on both sides for RMPU for LHB EOG/HOG type AC coaches of Indian Railways.
3. The applicant has sought advance ruling on following questions-
I. What will be the HSN Code and GST Rate on supply of “below Duct” to RDSO Ministry of Railways for use in Indian Railway Coaches?
II. Whether the supply of “Bellow Duct” to RDSO Ministry of Railways for use in Indian Railway Coaches will fall under the HSN Code 8607 having GST Rate of 12% or will it fall under the HSN 8424 having GST Rate of 18%.
4. As per declaration given by the applicant in Form ARA-01, the issue raised by the applicant is neither pending nor decided in any proceedings under any of the provisions of the Act, against the applicant.
5. The applicant has further submitted that chapter 86 of CGST Rate Schedule of Goods specifically deals with the parts supplied to Railways and hence the supply of “Bellow Duel” will fall under the said Chapter 86 and GST rate will be 12%. The applicant has enclosed copy of Purchase Order No. 08192636100495 dated 15.02.2020 along with application for advance ruling.
6. The application for advance ruling was forwarded to the Jurisdictional GST Officer to offer their comments/views/verification report on the matter. The Assistant Commissioner, CGST & Central Excise Division-Lucknow II, Lucknow vide his C.No.V(930) 156/Tech/Range Corr./Lko/2020/02/133 dated 10.02.2021 submitted that “Bellow Ducts” are used to connect air distribution lines of coach (ventilation ducts) to RMU (Roof Mounted AC Package Unit). Though the term coach work, falling under Chapter 86 is not defined, it has to treated in broad sense and any work which goes to make the coach functionally complete, should be treated as coach work. He further added that on going through the sub-heading of Chapter 86, it is observed that the sub-heading 86079910 (parts of coach work of railway running stock) covers the Parts of coach work. As such, he is of the opinion that the Chapter sub heading 8607 should be the correct classification for “Bellow Ducts” to be supplied by the applicant for use in Indian Railway Coaches and will attract the GST rate as per present Tariff.
7. The applicant was granted a personal hearing on 11.02.2021 which was attended by Shri Shashank Mittal, CA/ Authorized representative during which he reiterated the submissions made in the application of advance ruling.
DISCUSSION AND FINDING
8. At the outset, we would like to make it clear that the provisions of both the CGST Act and the UPGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the UPGST Act. Further for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / UPGST Act would be mentioned as being under the ‘CGST Act’.
9. We have gone through the Form GST ARA-01 filed by the applicant and observed that the applicant has ticked following issues on which advance ruling required-
(1) classification of any goods or services or both;
At the outset, we find that the issue raised in the application is squarely covered under Section 97(2) of the CGST Act 2017. We therefore, admit the application for consideration on merits.
10. We have gone through the submissions made by the applicant and have examined tine same. We observe that the applicant has sought advance ruling on the following questions-
1. What will be the HSN Code and GST Rate on supply of “Bellow Duct” to RDSO Ministry of Railways for use in Indian Railway Coaches?
2. Whether the supply of “Bellow Duct” to RDSO Ministry of Railways for use in Indian Railway Coaches will fall under the HSN Code 8607 having GST Rate of 12% or will it fall under the HSN 8424 having GST Rate of 18%.
11. We find that the applicant is registered under the GST Act and engaged in supply of “Bellow Duct” made of Meta Armid/Para Armid Fabric with Silicon Rubber Coating on both sides. The applicant has received the purchase order No. 08192636100495 dated 15.02.2020 from Integral Coach Factory for supply of Bellows set consisting of 1 No. of Supply A.ir Bellow, 02 Nos. of Fresh Bellows and 2 Nos. of Return Air Bellow Ducts as per ICF Drg. No. ICF/SK3-7-6-072 Type-I.
12. We find that the applicant has sought advance ruling on HSN code and rate of GST on supply of ‘Bellow Duct’ as per Form GST ARA-01 whereas in the Purchase Order, there is mention of supply of Bellows set consisting of 1 No. of Supply Air Bellow, 02 Nos. of Fresh Bellows and 2 Nos. of Return Air Bellow Ducts.
13. According to the Customs Tariff Act, 1975 (51 of 1975), we find that Industrial Bellows are classified under HSN 8424. The chapter subheading 8424 cover Mechanical appliances (whether or not hand-operated) for projecting, dispersing or spraying liquids or powders; Fire Extinguishers, whether or not charged, spray guns and similar appliances; steam or sand blasting machines and similar jet projecting machines. The applicant has also sought advance ruling as to whether bellow duct will fall under HSN 8424 or HSN 8607. As per entry- SI. No. 325 of Schedule III of the Notification 1/2017 C.T. (Rate) dt. 28.06.2017, the rate of CGST is 9% with following description-
