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2022 (9) TMI 205 - AAAR - GSTClassification of goods - applicable rate of tax - Agricultural manually hand operated Seed dressing, Coating and Treating drum - to be classified under HSN 8201 or under HSN 8437? - HELD THAT:- The classification of goods under GST regime has to be done in accordance with the Customs Tariff Act, 1975, which in turn is based on Harmonized System of Nomenclature, popularly known as ‘HSN’. The General Rules of Interpretation, Section notes and Chapter notes as specified under the Customs Tariff Act, 1975 are also applicable for deciding classification of goods under the GST regime. However, once an item is classified in accordance with the Customs Tariff Act, 1975, the rate of tax applicable would be arrived at on the basis of notifications issued under GST by the respective Governments. On perusal of Chapter Heading 8201 and Note 1 to Chapter 82, it is clear that this heading includes tools which are used in hand like shovels, forks, pruners etc having blade, working edge and working surface and in view of above, appellant products viz. manually operated seed dressing drum, therefore by no stretch of imagination, can be said to be classified under Heading 8201. From the explanatory notes to HSN 8436, which explains the scope of the entry, it is found that, other agricultural machinery includes Seed dusting machines consisting of a revolving drum in which the seeds are coated with insecticidal or fungicidal powders - there is thus no doubt that the product in question is covered under heading 8436. Moreover heading 8437 specifically excludes ‘farm-type machinery’, further strengthening the classification of subject goods under heading 8436. The appellant’s product viz. manually hand operated seed dressing, coating and treating drum is covered within the description provided under the HSN Code 8436. The appellant’s product in its use as well as its function is as described under the said HSN code - The appellant’s product viz. manually hand operated seed dressing, coating and treating drum is covered within the description provided under the HSN Code 8436. The appellant’s product in its use as well as its function is as described under the said HSN code - the GAAR has correctly classified the product in question under Chapter Heading 8436 and tariff item 8436 80 90. Appeal dismissed.
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