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2018 (9) TMI 699 - AAR - GSTClassification 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. 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 nearer to their product - thus, 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. 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 2000 (9) TMI 473 - CEGAT, MUMBAI , it is clarified that the correct classification of the Hand Pallet Trucks/Trolley Is under Heading 87.16. The last sub beading under the major head of 6 digit HSN for the product is 87168090 is meant for Others . Therefore, 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. 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.
Issues Involved:
1. Classification of Cargo Trolley under Central Excise Tariff Act, 1985. 2. Previous decisions by appellate authorities on similar issues. 3. Prevailing practice of classification of the product. 4. Classification of the subject goods under the GST regime. Issue-Wise Detailed Analysis: 1. Classification of Cargo Trolley under Central Excise Tariff Act, 1985: The assessee, M/s. AAkash Engineers, sought clarification on the correct classification of their product, a Cargo Trolley, under the Central Excise Tariff Act, 1985. The product is used to carry cargo from one place to another, is towable, has solid tyres, and is designed for outdoor use. Initially, the assessee classified the product under HSN code 87169090 during both the Central Excise regime and the GST regime. 2. Previous Decisions by Appellate Authorities: The Assistant Commissioner, Division-VI, Silvassa, Daman Commissionerate confirmed that there were no previous decisions by appellate authorities on the subject matter in the case of the assessee or other cases. This lack of precedent necessitated a fresh examination of the classification. 3. Prevailing Practice of Classification of the Product: The prevailing practice was to classify the product under HSN 87169090. The Assistant Commissioner provided sample invoices from both the Central Excise and GST regimes to support this practice. 4. Classification of the Subject Goods under the GST Regime: The assessee contended that the product might be classified under HSN 84279000, 87163100, or 87169090. The Authority for Advance Ruling examined these classifications in detail: - HSN 84279000: This code covers "Fork-lift trucks; other works trucks fitted with lifting or handling equipment." The Authority concluded that the Cargo Trolley does not fall under this category as it is not fitted with lifting or handling equipment. - HSN 8716: This code covers "Trailers and Semi Trailers; Other Vehicles, Not Mechanically Propelled; Parts Thereof." The Authority found that the Cargo Trolley fits within this major head, specifically under sub-heading 87168090, which covers "Other Vehicles - Other." The Authority's decision was supported by Circular No. 696/10/2003 dated 19.02.2003, which clarified that similar products like Hand Pallet Trucks/Trolleys are classified under Heading 87.16. The Authority concluded that the correct classification for the Cargo Trolley is under HSN 87168090, as it is not a part or accessory but a complete product. Conclusion: The Authority for Advance Ruling determined that the Cargo Trolley used to carry cargo, towable in nature, with solid tyres designed for outdoor use, is correctly classifiable under HSN 87168090. This classification applies to all types of taxes, including CGST, IGST, and UTGST. The application by M/s. AAkash Engineers was disposed of accordingly.
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