Classification of goods— The issue involved in the instant matter is regarding classification of subject goods proposed to be supplied to Indian railways and such goods will be manufactured by the applicant in the State of Rajasthan.

QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT:-

Whether if a Contractor who is covered under Clause 3A of the Notification No. 02/2018-Central Tax (Rate) dated 25.01.2018 and whose composite supply of goods and services attracts 'NIL' rate of duty, assigns/sub-lets the said contracted work to a sub-contractor in accordance with the terms and conditions of the contract, whether the same rate of duty i.e. NIL shall also be applicable to the said sub-contractor as he is performing the same functions/providing composite supply of goods and services as that of the contractor and providing such composite supply of goods and services for the Central Government, State Government or Union Territory or Local Authority or a Government Authority or a Government Entity only.

The applicant in their written submission stated that the subject goods will be used for protection of wires in locomotives/coaches /trams and metro i.e. railway industry / locomotive industry. Some of the goods will also be used in locomotives for electrical insulation purposes. The goods do not have any other intended use except in railways as they will be manufactured on the basis of specifications and parameters provided by the railways.

The write up provided by the applicant is incomplete and have no potential to prove 'the subject goods' as essential parts of Railway or tramway locomotives or otherwise. Simply protection of the wires and inner machinery of railways cannot categories the subject goods as part of 'railway or tramway locomotives, rolling stock and parts thereof or otherwise. 

Held that—  With the limited material fact submitted by the applicant, with no keen technical specification / properties / constitution etc. of 'the subject goods we find it prudent to refrain from pronouncing a Ruling. Therefore, no ruling is extended on the clarifications sought by applicant.