GST- AAAR Gujarat: Seed dressing, coating and treating drum machine are classified under tariff item 8436 80 90 – Decision of AAR upheld [Attached order dated 26 August 2022]

Order Date: 26 August 2022

Facts-

• The Appellant, Adarsh plant protect Ltd. has submitted that manually operated machines which are used by the farmer in agriculture to cover, coat and treat chemicals on seeds before sowing and falls under HSN 8201 and attract nil rate of GST. They further submitted that other manufacturers of similar kinds of machines of power operated are charging 5% GST under HS code 84371000.
• The GAARobserved that appellant's product is not a hand tool rather it is a machine used for seed dressing, Coating and treating the seed with chemicals. That there is no merit to classify the subject goods at HSN 8201. 
• The GAAR ruled that Seed dressing, coating and treating drum machine is classified at HSN 84368090 tariff item and liable to GST at 12%.
• Aggrieved by the aforesaid advance ruling, the appellant has filed the present appeal.
• The Appellate Authorities observed that the appellant products viz. manually operated seed dressing drum, cannot be said to be classified under Heading 8201.
• 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. 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.
• The Appellate Authorities held that the GAAR has correctly classified the product in question under Chapter Heading 8436 and tariff item 8436 80 90.hence the Appeal is dismissed.