Classification of Cargo Trolley under HSN 87168090 for Taxation Purposes

The Authority for Advance Ruling concluded that the Cargo Trolley, used for carrying cargo, towable with solid tires for outdoor use, is properly classified under HSN 87168090. This classification applies to various taxes, including CGST, IGST, and UTGST. Consequently, the application by M/s. AAkash Engineers was resolved accordingly.

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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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