The new Goods and Services Tax ( GST ) regime set a good example for using technological innovations to make the system more tax-friendly. Recently, the Advance Ruling application filed before the Authority for Advance Ruling ( AAR ), Karnataka was withdrawn by the applicant through e-mail.
The Applicant is engaged in the manufacture and supply of various types of Environmental Test Chambers i.e. Climatic Chamber, Thermal Shock Chamber, Corrosion Test Chamber, Altitude Chamber, Dust Chamber, Rain Chamber, Walk-in and drive in Chamber, that simulates real environmental conditions within a closed test space.
The Applicant, through an application, stated that these chambers are supplied to R&D and quality control labs to test the reliability of a product, these equipment used by DRDOIS and other Defence Establishments, Automotive, Electrical Bx. Electronic Industries (Private & Public Enterprises) and hence the use of these products is scientific & Technical in nature.
The question before the AAR was that can their product be classified as Scientific & Technical Instruments, Equipment under a relevant Chapter Heading?”.
Later, the Applicant requested to permit them to withdraw the application filed for advance ruling vide their e-mail letter dated 22.11.2018, quoting the reason that their claim has no merit. Accordingly, the authority dismissed the application.
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