The Telangana Appellate Authority of Advance Ruling (AAAR) has ruled that Aluminium Composite Panel/Sheets are classifiable under Heading 7606 and 18% GST is applicable.
The bench of Sandeep Prakash and S.A.M. Rizvi while upholding the AAR’s order observed that Aluminium Composite Panel/Sheets is neither plastic nor aluminium wholly and as such cannot be classified either as plastic or aluminium based on materials it contains and as such, subject goods do not fall under any of the Tariff Headings 3920 or 7604 or 7610. However, the ruling of State Member is otherwise silent on classification of subiect goods. On the other hand, the Central Member has held that goods are classifiable under Tariff Heading 7606 as per Rule 3(b) of the General Rules for the Interpretation of the Customs Import Tariff. Both the Members have expressed uniform opinion with regard to the applicability of rate of tax, i.e., 18%.
The applicant, M/s. Aludecor Lamination Private Limited is engaged in manufacturing of Aluminium Composite Panel/Sheet, (ACP Sheets). In common parlance the product of the applicant is called as “Aluminium Composite Panel”, often it is called as “Sandwich Panel” or “ACP Sheet”. It is used by Railways in coach building and also other purposes by commercial buildings as outside walls for protection from heat, advertisement boards, construction of pedestrian bridges, etc.
The applicant sought the advance ruling on the issue of whether the Aluminium Composite Panel/Sheet is covered under HSN 3920 or HSN 7610 or HSN 7606.
The Central Member has examined the matter in detail, in line with rules for interpretation of tariff and various case laws. It has been brought out that the rates of GST are specified as per “tariff item”, “sub-heading”, “heading”, and “chapter” mentioned in the schedules to the relevant notifications, which are as specified in the First Schedule to the Customs Tariff Act, 1975.
It is also specified that the rules of interpretation of the First Schedule to the Customs Tariff Act shall also apply to the interpretation of these notifications. The Central Member has applied Rule 3(b) of the General Rules for Interpretation of Tariff to hold that the subject goods would fall under Chapter 76, since essential character in respect of the ACPs is given by Aluminium. The Central Member has thereafter ruled out the contending Heading 7610 as the subject goods are not Aluminium structures and parts of structures. Thereafter, following the decision of CESTAT in the case of Commissioner of Customs (Imports) Chennai Vs ICP India Pvt. Ltd. {2018(7) TMI 546-CESTAT Chennai), the Central Member has held the goods to be classifiable under Heading 7606.
The AAR upheld the view taken by the Central Member in the Order and ruled that the Aluminium Composite Panel/Sheets are classifiable under Heading 7606.
Ruling Details
Applicant Name: M/s. Aludecor Lamination Private Limited
Date: 20/02/2025
