2018 (9) TMI 699 – AUTHORITY FOR ADVANCE RULING, DAMAN, DIU AND DADAR AND NAGAR HAVELI – 2018 (17) G. S. T. L. 40 (A. A. R. – GST) – Classification of goods – Cargo Trolley – whether the 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? – CBEC Circular No. 696/10/2003 dtd 19.02.2003.
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Held 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 use which is n
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nd treated for outdoor use is correctly classifiable under HSN 87168090.
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Ruling:- 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. – Order No. 03/AR/Daman-Silvassa/2018 Dated:- 17-8-2018 – SHRI SATISH KUMAR AND SHRI KANNAN GOPINATHAN, IAS MEMBER 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 ₹ 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-
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payments of required fee of ₹ 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 classificatio
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urer 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 classificat
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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 : Trail
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and 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 fo
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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 case of Gujrat Industrial Trucks Ltd. Vs. CCE Baroda = 2000 (9) TMI 473 – CEGAT, MUMBAI) 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 T
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oduct 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 bagga
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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 a
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