Saturday, August 8, 2020
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GST AAR can’t rule on classification of Imported Goods: AAR [Read Order]

By Mariya Paliwala -

The Maharashtra Authority of Advance Ruling (AAR) said that AAR is not allowed to answer the question on the classification of imported goods since the same is out of the purview of Section 95 of the CGST Act.

The applicant, A Raymond Fasteners India Pvt. Ltd. is involved in the developing and manufacturing of various types of fasteners and other accessories for a variety of industries ranging from automotive, trucks, energy sector, agriculture, pharmaceutical sector.

The procurement structure followed by the Applicant chiefly involves the importation of various products (inputs and packaging materials) from various sources/ nations, which are then used in the manufacture and subsequent sale of final products.

In this case, the jurisdictional office has raised the issue of classification of imported goods not being covered for the purposes of ruling by the Authority, the applicant has further, in their additional submissions contended that the same products are also supplied locally, out of manufacturing, by them. However, they have not supported their new contentions with any material evidence on record.

The Authority consists of members A.A. Chahure and P. Vinitha Sekhar said that AAR is not allowed to answer the question on the classification of imported goods since the same is out of the purview of Section 95 of CGST Act.

“For queries with respect to the classification of imported goods, there are separate Regulations viz. ‘Authority for Advance Ruling (Central Excise, Custom and Service Tax) Procedure Regulations, 2005’ and as per the said Regulations, the AAR of Central Excise, Custom and Service Tax, 2005 is the appropriate authority to answer the questions related to the classification of imported goods,” the GST AAR added.

To Read the full text of the Order CLICK HERE