Manually hand operated seed dressing drum shall be classifiable as other agricultural machinery: AAAR

Case Details: Appellate Authority for Advance Ruling, Gujarat Adarsh Plant Protect Ltd., In re - [2022] 145 taxmann.com 344 (AAAR-GUJARAT)

Judiciary and Counsel Details

• • Vivek Ranjan & Milind Torawane, Member
  • Atish Patel, MD & Ketan Maheshwari, CFO for the Appellant.

Facts of the Case

The appellant had applied for advance ruling for determining the HSN and applicable tax on ‘Agricultural manually hand operated Seed dressing, Coating and Treating drum’. The Authority for Advance Ruling (AAR) held that “Seed dressing, coating and treating drum machine would fall under HSN 84368090 and liable to GST at 12%.

It filed appeal against the order and submitted that manually operated seed dressing drum should either be classified under HSN 8201 which would attract Nil rate of GST where manually operated agriculture or animal driven tools are classified or under HSN 8437 which would attract 5% GST where machinery for cleaning, sorting or grading of seed or grain would be included.

AAR Held

The Appellate Authority for Advance Ruling observed that manually operated seed dressing drum, can’t be said to be classified under Heading 8201 in view of Note 1 to Chapter 82. Moreover, farm type machinery used by farmers during agriculture to cover, coat and treat chemicals on seeds before sowing shall not be covered under Chapter Heading 8437. Thus, the impugned products would appropriately be classifiable under Tariff Item 8436 80 90 and appeal was rejected.