Classification of goods— In the instant case, the applicant filed appeal against the advance ruling prounced by AAR, Punjab on the classification of roof mounted Air-conditioning unit especially for use in railway coaches (manufactured as per railway design) i.e. whether they are classifiable under HSN- 8415 1090- IGST @ 28% or under HSN 8607 99 - IGST @ 18% as parts of Railway Coaches; Locomotives?

The question raised by the applicant involves classification of air Conditioning machines manufactured and supplied by them to Indian Railways for use in the railway coaches. 

The applicant has contended that the goods viz. Roof Mounted Air-Conditioning unit manufactured and supplied by them, for use in railway coaches merits classification under HSN Code 8607 of Customs Tariff Act attracting levy of GST @ 18% instead of HSN Code 8415 of Customs Tariff Act. attracting levy of GST @ 28%.

In their support, the applicant has relied upon various Chapter notes/Section notes and some judicial decisions. For classifying the goods under HSN 8607, the applicant has specifically relied upon Note 3 to Section XVII of the Customs Tariff Act read with Explanatory. HSN Notes to Note 3 to Section XVII  and has primarily contended that since the goods manufactured by them are solely and principally for use in the manufacture of passenger coaches of railways, they are specifically classifiable under HSN 8607.

AAR, Punjab held that— The Roof Mourned Air-Conditioning unit manufactured by the applicant are classifiable under HSN Heading 8415 and the classification of the goods shall not after on account of supply by them to Railways. 

Appellate Authority for Advance Ruling, Punkab upheld the order AAR/GST/PB/016 dated 16th of August, 2022 51 TAXLOK.COM 116 issued by the Authority for Advance Ruling, Punjab and the appeal filed by the appellant M/s ESS ESS KAY ENGINEERING COMPANY PVT LTD, stands dismissed on all counts.