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2022 (5) TMI 963 - AAR - GSTClassification of goods - rate of GST - HSN Tariff - fire safety product assembled on trolley consisting of engine operated pump water tank hose reel pipe and gun operated through electric panel on trolley - to be classified as HSN 84241000 as general firefighting equipment or not - HELD THAT - On reference of description of the Goods which is a water mist firefighting trolley it is found that it is an assembly of Pump driven through engine water tank hose reel pipe and gun and these assembled parts are kept on trolley. This firefighting goods sprays water in such a way that a small quantity of water is sprayed at high velocity to make very fine disjointed droplets of water covering an exponentially larger area. The high pressure hose reel is fitted with high pressure fog/ jet gun. The gun has a pistol grip nozzle having discharge of atleast 12-30 lpm at 100 bar (pressure). Thereby subject goods are called water mist firefighting goods. We find that the description of the goods may be categorized as Firefighting pump with internal reservoir and thereby as per HSN Explanatory Notes does not merit classification at Tariff 84241000. The subject product is not a Fire fighting vehicle as described at Tariff 8705. The subject goods have ultrahigh pressure pump driven through the engine to discharge water at a specified LPM at specified pressure (bar) and thereby the goods need to be fitted or designed to be fitted with pressure measuring device - the said goods have nozzle attached to the water pipe permitting the control of the water mist discharged. It is found that this Tariff item 84131990 satisfying the product description. The HSN explanatory notes to 8424 has excluded such fire extinguishing goods and categorized them under 8413. Thus the said Fire safety product trolley at HSN 84131990.
1. ISSUES PRESENTED and CONSIDERED
The core legal question considered by the Authority for Advance Ruling (AAR) was the appropriate Harmonized System of Nomenclature (HSN) tariff classification of a 'fire safety product assembled on trolley', comprising an engine-operated pump, water tank, hose reel, pipe, and gun, operated through an electric panel on a trolley. Specifically, the issue was whether this product should be classified under HSN 84241000 as general firefighting equipment (fire extinguishers) or under another tariff heading, notably HSN 84131990, which covers pumps for liquids. 2. ISSUE-WISE DETAILED ANALYSIS Issue: Proper HSN Classification of the Fire Safety Product Trolley Relevant Legal Framework and Precedents: The classification was guided primarily by the HSN tariff schedule and the HSN Explanatory Notes, which serve as authoritative interpretative aids for tariff headings. The relevant headings considered were:
The HSN Explanatory Notes clarify that heading 8424 does not include firefighting pumps with or without internal reservoirs, which are classified under heading 8413 (non-automobile types) or heading 8705 (automobile types). The HSN explanatory notes are recognized as persuasive tools to assist in determining the correct GST tariff classification. Court's Interpretation and Reasoning: The AAR analyzed the product composition and function. The product is a water mist firefighting trolley consisting of an engine-driven pump, water tank (internal reservoir), hose reel, pipe, and gun mounted on a trolley. The product sprays water at high velocity to produce fine droplets covering a large area, with a nozzle capable of discharging 12-30 liters per minute at 100 bar pressure. The AAR noted that the product is not a fire extinguisher as described under heading 84241000, which primarily covers fire extinguishers, whether charged or not. The HSN Explanatory Notes explicitly exclude firefighting pumps from heading 8424. The product also does not fall under heading 8705, which covers firefighting vehicles. Given that the product includes an ultrahigh pressure pump driven by an engine with a nozzle permitting control of water mist discharge, it aligns with the description under heading 8413, specifically subheading 84131990 ("Other pumps for liquids"). The HSN explanatory notes to subheadings 8413.11 and 8413.19 clarify that pumps designed as units with devices permitting volumetric control of liquid discharged fall under this heading. The nozzle on the product allows control of water discharge, satisfying this criterion. Key Evidence and Findings:
Application of Law to Facts: The AAR applied the HSN explanatory notes to the facts, determining that the product's assembly and functional characteristics correspond to a firefighting pump with an internal reservoir, which is excluded from heading 8424. The presence of a pump with volumetric control (via nozzle) and internal reservoir aligns with heading 8413. The product is not a firefighting vehicle under heading 8705. Therefore, the product is properly classified under HSN 84131990. Treatment of Competing Arguments: The Revenue did not submit any comments nor appear for the hearing, so no competing arguments were presented or considered. Conclusions: The AAR concluded that the fire safety product trolley does not qualify as a fire extinguisher under heading 84241000 and is not a firefighting vehicle under 8705. Instead, it meets the criteria for classification under heading 84131990 as a pump for liquids with volumetric control features. 3. SIGNIFICANT HOLDINGS The Authority for Advance Ruling held: "We note that Tariff 84241000, cited by M/s Swadeshi, describes Fire Extinguishers, whether or not charged. Further as per the HSN Explanatory Notes, this heading (8424) does not include Firefighting pumps with or without internal reservoirs, heading 8413 (non-automobile types) or heading 8705 (automobile types). We hold that the HSN Explanatory Notes are a guide and a persuasive tool to assist us in determining the Classification in GST Tariff." "We find that the description of the goods may be categorized as Firefighting pump with internal reservoir and thereby, as per HSN Explanatory Notes does not merit classification at Tariff 84241000. Further the subject product is not a Fire fighting vehicle as described at Tariff 8705. The subject goods have ultrahigh pressure pump driven through the engine to discharge water at a specified LPM at specified pressure (bar) and thereby the goods need to be fitted or designed to be fitted with pressure measuring device. Further, we note that the said goods have nozzle attached to the water pipe permitting the control of the water mist discharged. We find this Tariff item 84131990 satisfying the product description. The HSN explanatory notes to 8424 has excluded such fire extinguishing goods and categorized them under 8413." "We classify the said Fire safety product trolley at HSN 84131990." The core principle established is that firefighting pumps with internal reservoirs are excluded from the fire extinguisher tariff heading and must be classified under pumps for liquids (8413), provided they have volumetric control devices such as nozzles. This interpretation aligns with the authoritative HSN Explanatory Notes and ensures correct GST tariff classification.
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