Classification of goods— This appeal has been filed against the order passed by the Tamil Nadu Authority for Advance ruling on the application for advance ruling filed by the appellant. The applicant is retailer dealing with various types of toys like baby tricycle, kids scooter, etc.

The appellants stated that they are regular importers and traders of toys from various countries, that they sell these goods in India, in retail as well as through E-Commerce platforms.

The Appellant had sought Advance Ruling on the following questions:

When physical force is the primary action of a Toy and if the light and the music are ancillary to it then whether it is to be classified under “Electronic Toys” or “other than Electronic Toys”?

The lower authority ruled that, the products Children Scooter, Activity Ride-on, Smart Tricycle and Kick Scooter, in which physical force is the primary action and contains an in built electronic circuit, are “Electronic Toys” and the applicable GST Rate is 18% as per serial number 440 of Schedule- III of Notification No. 01/2017-CT (Rate) dated 28.06.2017.

Held that— In the case of appellants, it is apparently clear that all the four products contain electronic components irrespective of its usage, the said goods would fail to fall under serial number 228 of schedule II to the Notification No.1/2017 Central Tax Rate dated 28-6-2017 and therefore they have to be classified under serial number 440 of schedule III to the Notification No.1/2017 Central Tax Rate dated 28-6-2017. The Advance Ruling Authority has with the aid of standard applicable for tools have also came to the conclusion that the goods of the appellate are classifiable under serial number 440 of schedule III to the Notification No.1/2017 Central Tax Rate dated 28-6-2017, which we hold that no interference is warranted and accordingly the appeal fails.