Brush Holder Assembly, Lead Wires and Insulating Rods manufactured as per drawings & specifications of Indian Railways to be classified under heading 8607

Case details: Authority for Advance Rulings, Maharashtra Arco Electro Technologies (P.) Ltd., In re - [2021] 129 taxmann.com 205 (AAR - MAHARASHTRA)

Judiciary and Counsel Details

• • Rajiv Magoo and T.R Ramnani, Member

Facts of the Case

The applicant was manufacturing and supplying Brush Holder Assembly and parts, Lead Wires and Insulating Rods for locomotives for supplying to Indian Railways. It filed application seeking advance ruling on classification of these items and applicable GST rate thereon. It also submitted that if it would not be able to sell goods to Indian Railways, then these items will have to be scrapped as these goods are suitable for use solely or principally with locomotives manufactured by Indian Railways.

AAR Held

The Authority for Advance Ruling observed that Chapter heading 86.07 covers parts of railway or tramway locomotives or rolling stock. The goods manufactured by the applicant are suitable for use solely or principally with Railway Locomotives falling under chapter 86 and moreover, this chapter specifically includes the impugned products. Therefore, it was held that the impugned goods i.e., Brush Holder Assembly and parts, Lead Wires for locomotives and Insulating Rods locomotives manufactured by the applicant as per the specification and drawings of Indian Railways would be classifiable under heading 86.07.

List of Cases Referred to

• • Prragathi Steel Castings (P.) Ltd., In re[2020] 118 taxmann.com 334/[2021] 84 GST 177 (AAR – Karnataka) (para 2.6)
  • Wendell Submersible (P.) Ltd. v. Union of Indian [Special Civil Application No. 4656 and 4658 of 1986, dated 7-9-1988] (para 3.7)
  • Controller of Central Excise v. Vie Kay Electrical 1995 (77) ELT 420 (Tri-Delhi) (para 3.7)
  • Poona Radiators v. Collector of Central Excise [Appeal No. E/669/89-BI, dated 15-2-1990] (para 3.7)
  • Rishabh Industries, In re [2020] 114 taxmann.com 237/80 GST 55 (AAR-Maharashtra) (para 3.7)