Question
What is the rate on supply of goods to Indian Railway for Air Filter product.
Answer
Air filter product is classified In Schedule III
of Notification 1/2017-Central Tax (Rate) vide s.no. 322 under heading 8421.
The product is classified under 8421 and not under railway parts because as per
Section note no. 2(e) of Section XVII of the Customs Tariff Act reproduced below
the Air filter should be classified under Chapter 84 of Customs Tariff.
2. The expressions "parts" and "parts and accessories" do not apply to the
following articles, whether or not they are identifiable as for the goods of
this Section
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(e) Machines or apparatus of heading Nos. 84.01 to 84.79, or parts thereof;
articles of heading No. 84.81 or 84.82 or, provided they constitute integral
parts of engines or motors, articles of heading No. 84.83
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In this case we are referring to Customs Tariff because as per Explanation to
Notification 1/2017-Central Tax (Rate) it is notified that For the purposes of
this notification,-
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(iv) The rules for the interpretation of the First Schedule to the Customs
Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the
General Explanatory Notes of the First Schedule shall, so far as may be, apply
to the interpretation of this notification.
You are also requested to please check classification under chapter 8414 if the
filter is attached to machinery classified under Chapter 8414. (Reply
dt.01/09/2018)