Case Law Details
In re Adarsh Plant Protect Ltd (GST AAAR Gujarat)
What is the HSN and applicable tax on ‘Agricultural manually hand operated Seed dressing, Coating and Treating drum’?
The main issue to be decided here is the classification of the product viz. “Agricultural manually hand operated Seed dressing, Coating and Treating drum” and to decide applicable rate of GST on the same.
From the explanatory notes to HSN 8436, which explains the scope of the entry, it is found that, other agricultural machinery includes Seed dusting machines consisting of a revolving drum in which the seeds are coated with insecticidal or fungicidal powders. The appellant have mentioned in their appeal, inter-alia, that their machinery is used to cover and coating of chemicals over seeds or grains before sowing to increase their germination and immunity against disease. Further the product in question is an agricultural machinery, and the same is a farm-type machinery. . Thus there is thus no doubt that the product in question is covered under heading 8436. Moreover heading 8437 specifically excludes ‘farm-type machinery’, further strengthening the classification of subject goods under heading 8436.
The appellant’s product viz. manually hand operated seed dressing, coating and treating drum is covered within the description provided under the HSN Code 8436. The appellant’s product in its use as well as its function is as described under the said HSN code. Therefore, we find that the GAAR has correctly classified the product in question under Chapter Heading 8436 and tariff item 8436 80 90.
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