Project Tax Classification On Draft Invoice Lines and Defaults and Control Application Tax Option F

We have been trying to Add specific Tax on Project Draft Invoice Line Level
Besides all setup for Tax Regim, Tax Codes etc, we have defined
Under Tax Manager Setup >
Defaults and Control Application Tax Option
For Application Projects> Operating Unit  A > Defaulting Order 1 > Projects
Defaulting Order use Status :  Active
After this we have added Tax Classification at Project  Level> Revenue and Billing Information >
Tax Classification Code: TAX CODE XX
After this, when we generated Draft Invoice and approved draft Invoice, system has taken TAX CODE XX at the Invoice Line Level.
This is as expected.

After this, we approved and Released Draft Invoice and interfaced to AR, all went through fine.