Goods vehicle classification upheld for utility vans with incidental passenger seating under the GST Tariff.

Utility vans designed to carry goods with only limited passenger seating were treated as goods vehicles because their essential character was the carriage of goods, while passenger space was merely ancillary to loading, unloading and related transport needs. Their specifications showed substantially greater cargo capacity than passenger capacity, and the vehicles also met the Automotive Industry Standards for Category N goods vehicles. The settled pre-GST classification principle that incidental carriage of persons does not change the essential nature of a goods vehicle supported classification under Chapter 8704 of the GST Tariff rather than Chapter 8703.

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Issues: Whether utility vans designed to carry both goods and a limited number of passengers are classifiable under Chapter 8703 as vehicles principally designed for transport of persons, or under Chapter 8704 as goods vehicles.

Analysis: The vehicles were found to be designed primarily for carriage of goods, with passenger seating only as an ancillary to assist loading, unloading and allied transport needs. Their specifications showed that the cargo-carrying capacity was substantially greater than the passenger-carrying element. The classification was also tested against the Automotive Industry Standards for Category N vehicles, and the vehicles satisfied the prescribed conditions for goods-carrying vehicles. The settled pre-GST classification and the principle that incidental carriage of persons does not alter the essential character of a goods vehicle supported the same result.

Conclusion: The utility vans are classifiable under Chapter 8704 of the GST Tariff and not under Chapter 8703.

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