Customs AAR Alone Can Rule On Classification Of Imports | AAR

Case Deatails: Sundaram Industries (P.) Ltd., In re - [2025] 177 taxmann.com 407 (AAR - TAMILNADU) 

Judiciary and Counsel Details

• B. Suseel Kurnar & C. Thiyagarajan, Member

Facts of the Case

The applicant was engaged in the manufacture of equipment meant for the transmission of load to defence. The applicant was required to import inputs and procure them from the local market. To ascertain the classification with regard to the HSN code of input goods used in their manufacturing, the applicant filed an application before the Tamil Nadu Authority for Advance Ruling (AAR).

AAR Held

The AAR held that the classification of goods in relation to the outward supply of goods or services being undertaken or proposed to be undertaken by the applicant alone merits consideration and admission under the scheme of things under advance ruling as far as it relates to GST. However, the AAR observed that the applicant sought a ruling on the classification of goods imported by them. The input goods for which classification was sought by the applicant were all imported goods.The assessment to duties of Customs, including the import IGST in respect of imported products, vests with the Customs Department. Accordingly, the AAR in relation to Customs would be the apt forum to address this query. Therefore, the AAR is empowered to answer queries only relating to GST, and only on outward supply of goods or services or both carried out by the applicant and not in respect of the inward supplies received by the applicant.Therefore, the AAR ruled that the application filed by the applicant is not liable for admission as the query raised therein falls outside the scope of ‘Advance Ruling‘.