2018(08)LCX0137(AAR)
AAR-DAMAN & DIU
M/s AAkash Engineers
decided on 17/08/2018
Ministry of Finance Central Board of Taxes & Customs
OFFICE OF THE MEMBER,
ADVANCE RULING, DAMAN, DIU &
DNH, 6th FLOOR,
VAPI-DAMAN ROAD, CHALA, VAPI
Ph.; 0260-2970014 Fax: 0260-2970013
damanadvrul@gmail.com
No.- Order No. 03/AR/Daman-Silvassa/2018
Date: 17.08.2018
Passed by:-
1. Shri Satish Kumar Joint Commissioner Central Goods & Service Tax Daman Commissionerate.................Member (Central Tax)
2. Shri Kannan Gopinathan Deputy Collector UT Goods & Service Tax Daman.....................Member (U.T.)
Date of Advance Ruling: 17/08/2019
Date of Issue: 17/08/2018
Advance Ruling Number: Order No. 03/AR/Daman-Silvassa/2018
Any person deeming himself
aggrieved by this Advance Ruling may appeal against the Ruling before the
Appellate Authority for Advance Ruling, in terms of Section 100 of the Central
Goods & Service Tax Act, 2017. Such appeal shall be done within 30 days from the
date of the communication of the order. The appeal papers shall bear fee of Rs.
10,000/- as provided under Rule 106(1) of the Central Goods & Service Tax
Rules,2017.
The Appeal should be filed in Form GST ARA-02, prescribed under sub-rule (1) of
Rule 106 & GST ARA-03 of the Central Goods & Service Tax Rules, 2017, as the
case maybe, duly signed by the person specified in sub-rule (3) (a&b} of the
Rule 106.
The appeal including the statement of facts and relevant documents, shall be
filed in quadruplicate accompanied by equal number of copies of the order
appealed against [one of which at least shall be certified copy).
An appeal against this order shall lie before the Appellate Authority of Advance
Ruling on payment of Rs. 10,000/- as provided under Rule 106(1) of the Central
Goods & Service Tax Rules, 2017,
Brief Facts of the Case:-
M/s. AAkash Engineers, Plot No. 277/2, Village-Dadra,Silvassa, registered under
Goods & Services Tax vide GSTIN Number 26AAAFA5770D1ZT, vide their letter dated
17.08.2018, submitted an application in Form of GST ARA-01 under Rule 104(1) of
Adavance Ruling along with statements of facts and copy of challan bearing
No.1802600001756 Dated 16.05.2018 evidencing the payments of required fee of Rs.
10,000/-. In the said application the assessee has sought clarification for
correct classification of their goods i.e. a Cargo Trolley used to carry Cargo
from one place to another, towable in nature and has solid tyre design for
transportation of baggage and light cargo with a minimum payload. The trolley is
rugged and is suitable and treated for outdoor use.
To verily the facts, application of the assessee was forward vide letter F.No.
V/AR-07/Aakash/DUM/2017-18 dtd 24.05.2018 to the Assistant commissioner, Div-VI,
GST& CR Silvassa, Daman Commissionerate for examination and their detailed
reports on the following points was called for:-
I. Classification of the said goods under Central Excise Tariff Act,1985;
II. Whether any issue on the subject matter has been decided by the appellate
Authority In their own case of the assessee or other cases. If Yes, please
furnish the copy of the said orders;
Ill. What is prevalling practice of classification of the product In question?
and
IV. Their report on classification of the subject goods under GST regime with
supporting CaseLaws/Notifications/Circulars or other similar documentary
evidence.
2. The JAC, Division-VI, Silvassa, Daman Commissionerate vide their letter No.
DSLV-VI/Misc -Tech/2017-18 dtd 21.06.2018 have submitted their reply on the
following points.
A. The assessee was a registered unit under Central Excise having registration
No.AAAFA5770 DXM001, The assessee has cleared the said goods under HSN code
87169090 under Central Excise Tariff Act, 1985, currently after implementation
of GST also the assessee is clearing the subject goods with the same HSN
87169090. Sample Invoice copies in respect of Central Excise regime as well as
GST regime obtained from the assesse, have been submitted.
B. Issue in question, In the case of the assessee, has not been decided by the
appellate Authority. in their own case of the assessee or other cases.
C. The assessee is the only manufacturer of the subject goods in their
jurisdiction.
D. From the photograph provided by the assessee, the product under consideration
appears to be a baggage/cargo trolly used at Air Cargo Complex/Airport for
shifting baggage/goods/parcels from airline warehouse to on board the flights
and vice versa. On going through the GST Tariff Act, 2017, it is noticed that
there is no specific entry for the said product. However, it appears to be
classifible under heading 87168090.
3. Defence submission and records of personal Hearing:
To abide by the law of natural justice, the assessee were given a chance to be
heard in person vide letter dtd.24.07.2018. they were also requested vide said
letter to submit documentary evidence in support of their claim, if any, In
compliance of the said PH letter.
Shri Milan R. Shah, authorized representative of the applicant appeared for
personal hearing on 06.08,2010. During the personal hearing, he submitted that
as per their understanding the correct classification of the product appears to
be 87169090. However, if in the above Chapter, the product is not classifiable
then it may be considered as miscellaneous item may be allowed as such for
payment of GST. He further requested that in light of the above submission the
application may be disposed accordingly.
4. Discussion and Findings:-
ln the present case we, the members of Advance Ruling, have to decide as to
whether the above said product of the applicant in question i.e. Cargo Trolley
used to carry Cargo from one place to another, towable in nature and has solid
tyre designed for transportation of baggage and light cargo with a minimum
payload. The trolley is rugged and is suitable and treated for outdoor use is to
be classified under HS Code 87169090 or otherwise.
4.1 The assessee in their application have contended that their product may be
classified under HSN 84279000 or 87163100 or 87169090. Therefore, before
deciding the issue we find need to discuss the products merit classifiable under
the said HSN.
4.1.1 First of all we discuss HSN 84279000. On going through the GST Tariff Act,
2017 we find that major head of HSN 8427 covers “Fork-lift trucks; other works
trucks fitted with lifting or handling equipment”. It is very clear that major
head 8427 covers fork lift trucks or other works trucks fitted with lifting or
handling equipment which is different from the product manufactured by the
assessee. Therefore, it is concluded that the product i.e. Cargo Trolley used to
carry Cargo from one place to another, towable in nature and has solid tyre
designed for transportation of baggage and light cargo with a minimum payload.
The trolley is rugged and is suitable and treated for outdoor use, does not fall
under HSN 84279000 which is specifically classified for other trucks.
4.2 Now we refer to the Chapter Note of Heading 8716 under GST Tariff which
reads as under-
8716: Trailers and Semi Trailers; Other Vehicles, Not Mechanically Propelled;
Parts Thereof
87161000 : Trailers And Semi Trailers; Other Vehicles, Not Mechanically
Propelled; Parts Thereof Trailers And Semi Trailers Of The Caravan Type, For
Housing Or Camping
87162000 : Trailers And Semi Trailers; Other Vehicles, Not Mechanically
Propelled; Parts Thereof Self Loading Or Self Unloading Trailers And Semi
Trailers For Agricultural Purposes
87163100: Trailers And Semi Trailers; Other Vehicles, Not Mechanically
Propelled; Parts Thereof Other Trailers And Semi Trailers For The Transport Of
Goods : Tanker Trailers And Tanker Semi Trailers
87163900: Trailers And Semi Trailers; Other Vehicles, Not Mechanically
Propelled; Parts Thereof Other Trailers And Semi Trailers For The Transport Of
Goods : Other
87164000 : Trailers And Semi Trailers; Other Vehicles, Not Mechanically
Propelled; Parts Thereof Other Trailers And Semi Trailers For The Transport Of
Goods : Other Trailers And Semi Trailers
87168010: Trailers And Semi Trailers; Other Vehicles, Not Mechanically
Propelled; Parts Thereof Other Vehicles Hand Propelled Vehicles (E.G. Hand
Carts, Rickshaw’s And The Like)
87169020: Trailers And Semi Trailers; Other Vehicles, Not Mechanically
Propelled; Parts Thereof Other Vehicles Animal Drawn Vehicles
87168090: Trailers And Semi Trailers; Other Vehicles, Not Mechanically
Propelled; Parts Thereof Other Vehicles Other
87169010: Trailers And Semi Trailers; Other Vehicles, Not Mechanically
Propelled; Parts Thereof: Parts And Accessories of Trailers
87169090: Trailers And Semi Trailers; Other Vehicles, Not Mechanically
Propelled; Parts Thereof parts Other
4.2.1 On going through the HSN description of 8716, we find that HSN 8716 covers
product Trailers and Semi Trailers; Other Vehicles, Not Mechanically Propelled;
Paris thereof whereas the assessee manufacture product Cargo Trolley used to
carry Cargo from one place to another, towable in nature and has solid tyre
designed for transportation of baggage and light cargo with a minimum payload.
The trolley is rugged and is suitable and treated for outdoor usewhich is nearer
to their product Therefore, we jointly take a view that their product i.e. Cargo
Trolley used to carry Cargo from one place to another, towable in nature and has
solid tyre designed for transportation of baggage and light cargo with a minimum
payload. The trolley is rugged and is suitable and treated for outdoor use is
merit classification under major head 8716.
4.3 The view of Members of Advance Ruling finds support from the Circular No.
696/10/2003 dtd 19.02.2003 wherein the Issue have been clarified by the CBEC
which reads as under-
Circular No. 694/10/2003,
Dated 19th February, 2003
F. No. 171/15/200-CX.4,
Government of India Ministry of Finance & Company Affairs Department of Revenue
Sub:- Classification of
Hand Pallet Trucks / Trolley.
I am directed to say that a doubt has been raised
whether the Hand Pallet Truck/Trolley are classifiable under heading 84.27 or
under heading 87.16 of the Central Tariff. This classification issue had already
been examined once by the Board for defending the Writ Petition filed by M/s
jaldoot Material Handling Pvt. Itd., it was then clarified that the appropriate
classification of the item would be under heading 87.16. The CEGAT however has
held in this case that the correct classification of Hand Pallet Trucks is under
chapter heading 84.27 of CETA, 1985. An appeal against the CEGAT judgement has
been filed before Apex Court.
2. In case of a similar product described as Hand Trolley, the CEGAT has held
(in the caseof Gujrat Industrial Trucks Ltd. Vs. CCE Baroda that the correct
classification of the item is under chapter heading 87.16 of CETA 1985.
3. The matter has been examined by the Board. In view of Ministry’s stand to
appeal against the CEGAT decision in the case of jaldoot Material Handling Pvt.
Ltd., and also the Judgement in the case of Gujrat Industrial Trucks Ltd. Vs.
CCE Baroda, it is clarified that the correct classification of the Hand Pallet
Trucks/Trolley is under Heading 87.16. However, since in the case of jaldoot
Material Handling Pvt. Itd. has taken a different view, for this particular
party protective demands should only be raised and kept alive till the decision
of the Apex Court. In respect of other parties demands can be raised under the
normal period prescribed under section 11A of the Central Excise Act, 1994 and
adjudicated.
4. Trade and field formations may be suitably Informed.
5. Receipt of this circular may please be acknowledged.
6. Hindi version will follow.
4.3.1 We note that the Circular No. 696/10/2003 dtd 19.02.2003 specifically
direct that in the judgement in the case of Gujrat Industrial Trucks Ltd. Vs.
CCE Baroda. It is clarified that the correct classification of the Hand Pallet
Trucks/Trolley Is under Heading 87.16. Therefore, we hold that the correct HSN
classification for the product in question i.e. Cargo Trolley used to carry
Cargo from one place to another, towable in nature and has solid tyre designed
for transportation of baggage and light cargo with a minimum payload. The
trolley is rugged and is suitable and treated for outdoor use is merit
classification under major bead 8716.
4.3.2 Now we discuss the product presently classified by the assessor under the
HSN 87169090 is correct or otherwise. On going through the major head for HSN
871690 which is specifically cover parts whereas the detail description given
under HSN sub heading 87169010 is meant for Parts and accessories of trailers
and HSN code 871690920 for other. Here it is worth mention that the eight digit
HSN for sub heading 87169090 is also a type of specification for parts only.
Hence, it can not be the correct eight digit HSN for the product in question
i.e. Cargo Trolley used to carry Cargo from one place to another, towable in
nature and has solid tyre designed for transportation of baggage and light cargo
with a minimum payload. The trolley is rugged and is suitable and treated for
outdoor use.
5. We further note that the JAC in their reply have reported under point “d”
that from the photograph provided by the assessee. the product under
consideration appears to be a baggage/Cargo trolly used at Air Cargo
Complexes/Airport for shifting baggage/goods/parcels from airline ware house to
on board the flights and vice versa. On going through the GST Tariff Act, 2017,
it is noticed that there is no specific entry for the said product. However, it
appears to be classifiable under heading 871611090
5.1 On going through the GST HSN code for major 6 head 871680 which is cover
“other Vehicle” whereas further sub heading 87168010 covers hand propelled
vehicles e.g. hand cart, rickshaw and the like, hence, it can not be the proper
HSN code for their product. Further sub heading 87168020 covers the product
“Animal drawn Vehicle” the product manufactured by the assessee is other than
the product of animal drawn vehicle hence it can not be classified under sub
heading 87168020. Now the last sub beading under the major head of 6 digit HSN
for the product is 87168090 is meant for “Others”. Therefore, we are of the view
that the product in question i.e. Cargo Trolley used to carry Cargo from one
place to another, towable in nature and has solid tyre designed for
transportation of baggage and light cargo with a minimum payload. The trolley is
rugged and is suitable and treated for outdoor use is correctly classifiable
under HSN 87168090.
6. We note that Harmonized System or Nomenclature (HSN) is internationally
recognized product/items coding system which has also been accepted in India.
From the above detailed Chapter Sub Heading wise classification of the product
in the existing law i.e under Central Excise it is found that the classification
of the above said product is one and the same under GST regime as well as under
Customs law. No change in the classification under all the entire three “Act”
have been noticed. Therefore, find that the product in question i.e. Cargo
Trolley used to carry Cargo from one place to another, towable in nature and has
solid tyre designed for transportation of baggage and light cargo with a minimum
payload. The trolley is rugged and is suitable and treated for outdoor use is
correctly classifiable under HSN 87168090.
7. In view of the above discussing and findings, we hereby pronounce Advance
Ruling under Sub Section 4 of Section 98 using power vested in us under sub
Section 6 of Section 98, Section 96 of the Central Goods and Service Tax Act,
2017 read with Rule 103 of the Central GST Rules, 2017 and defined under Section
14 of the UTGST Act, 2017 as under-
Order/ Advance Ruling
7.1 We hereby take decision against application dtd 22.07.2017 of M/s Aakash Engineers, Plot No. 277/2, Village-Dadra, Silvassa., and pronounce Advance Ruling that Cargo Trolley used to carry Cargo from one place to another, towable in nature and has solid tyre designed for transportation of baggage and light cargo with a minimum payload. The trolley is rugged and is suitable and treated for outdoor use is correctly classifiable under HSN 87168090. Their application dtd 17.05.2018 is disposed off accordingly. Present decision will be applicable for the payment of all types of taxes i.e. CGST/IGST and UTGST.
(Dr. Satish Kuamr)
Member CGST
Shri Kannan Gopinathan
Member UTGST
To,
M/s Aakash Engineers, Plot No. 277/2, Village-Dadra, Silvassa.,
Copv to the following for
information and necessary action please.
1. The Commissioner of CCST and Central Excise, Daman Commissioner.
2 The Commissioner of UTGST .Daman.
3. The Asstt. Commissioner of CGST & CE, Division-1, Daman.
4. The Superintendent of CGST &CE, Range-IV, Div-l, Daman.
5. Guard file.