Only the goods classified under Chapter 86 supplied to the Railways attract 5% GST rate with no refund of unutilized input tax credit and that Other goods would attract the general applicable rates to such goods, even if supplied to railways. The goods which would be supplied from the unit at Pathredi to the unit situated in Chennai cannot be classified under chapter 86 and hence, they would attract the general applicable rate of duties as per the classification of each item in their respective chapters.
Classification of goods— The issue in the present application is in relation to the tariff classification of the goods / sub-assemblies supplied by the Pathredi unit to the Chennai unit, along with the rate of IGST applicable thereupon.
the parts which will be assembled in Chennai Unit are being assembled by adding some other components procured from other suppliers and in Chennai the applicant could undertake the process involving In-house inspection, Fabrication, welding, painting, leakage testing and final inspection of the assemblies and this process appears to be major process of manufacturing and after that the Coaches will be supplied to Indian Railways.
in the present case assembly operation as well as addition of components is being done to prepare the parent assembly and thereafter being supplied to Indian Railways. Therefore, the goods supplied from Pathredi Unit to Chennai Unit cannot be classified in the same heading as the assembled article is classified.
Held that— The goods which would be supplied from the unit at Pathredi to the unit situated in Chennai cannot be classified under chapter 86 and hence, they would attract the general applicable rate of duties as per the classification of each item in their respective chapters.
Only the goods classified under Chapter 86 supplied to the Railways attract 5% GST rate with no refund of unutilized input tax credit and that Other goods would attract the general applicable rates to such goods, even if supplied to railways. The goods which would be supplied from the unit at Pathredi to the unit situated in Chennai cannot be classified under chapter 86 and hence, they would attract the general applicable rate of duties as per the classification of each item in their respective chapters.
Classification of goods— The issue in the present application is in relation to the tariff classification of the goods / sub-assemblies supplied by the Pathredi unit to the Chennai unit, along with the rate of IGST applicable thereupon.
the parts which will be assembled in Chennai Unit are being assembled by adding some other components procured from other suppliers and in Chennai the applicant could undertake the process involving In-house inspection, Fabrication, welding, painting, leakage testing and final inspection of the assemblies and this process appears to be major process of manufacturing and after that the Coaches will be supplied to Indian Railways.
in the present case assembly operation as well as addition of components is being done to prepare the parent assembly and thereafter being supplied to Indian Railways. Therefore, the goods supplied from Pathredi Unit to Chennai Unit cannot be classified in the same heading as the assembled article is classified.
Held that— The goods which would be supplied from the unit at Pathredi to the unit situated in Chennai cannot be classified under chapter 86 and hence, they would attract the general applicable rate of duties as per the classification of each item in their respective chapters.