2018 (5) TMI 810 – AUTHORITY FOR ADVANCE RULING – MAHARASHTRA – 2018 (12) G. S. T. L. 585 (A. A. R. – GST), [2018] 2 GSTL (AAR) 71 (AAR) – Applicability of GST – Classification of goods – Natural Easter Dielectric Fluid (Envirotemp FR3) – soyabean oil has to be modified or adapted for use in the transformers – falling under Sr. no. 27 of Schedule I or Serial no, 27 of Schedule II of Notification No. 1/2017 – Rate of GST would be 5% or 12% (i.e. 2.5% / 6% each of CGST and SGST)
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Held that: – The product before us is described as “Envirotemp FR3”. The packing of the product describes “Envirotemp FR3 Fluid” as Fire Resistant Natural Ester Dielectric Coolant for transformers and related electrical apparatus. The product, as informed, is made up of refined soya beans oil after mixing some additives with the same.
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Various processes are involved in the manufacture of the impugned product. In step 6, some additives are added. But the applicant has not informed the details of these
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ould not mean that a new commodity has not been produced. We have seen above an extract from an article that while there are data and international standards galore for mineral oils, there are as yet no IEC standards addressing the composition or testing of the natural ester oils with their different chemical composition. Each manufacturer has his own set of ingredients to obtain a coolant for transformer. That is precisely the reason that the applicant has not preferred to divulge the details, Thus, by addition of the needful additives and chemicals, we have different transformer coolants made from vegetable oils, each with their different chemical composition. The requirement of retaining the original fundamental structure would not be possible by the use of the additives and chemicals.
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The product is not being sold as a modified vegetable oil but as the product which is resulting from the adaptation of the vegetable oils to obtain a coolant for a transformer – the impugned pro
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scription would be applicable.
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Ruling:- Envirotemp FR3 falls under Serial no. 27 of Schedule II of Notification No. 1/2017-State Tax (Rate) dated 29th June, 2017 issued under the MGST Act, 2017 and Notification No. 1/2017-Central Tax (Rate) dated 28th June, 2017 issued under the CGST Act, 2017 is taxable at the rate of 6%. – GST-ARA-08/2017/B-12 Dated:- 20-3-2018 – Shri B.V. Borhade, Joint Commissioner of State Tax and Shri Pankaj Kumar, Joint Commissioner of Central Tax PROCEEDINGS (under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as the CGST Act and MGST Act"] by CARGILL INDIA PRIVATE LIMITED, the applicant, seeking an advance ruling in respect of the applicability of GST on: Whether Natural Easter Dielectric Fluid (hereinaf
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sions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the "GST Act" 02. FACTS AND CONTENTION – AS PER THE APPLICANT The submissions, as reproduced verbatim could be seen thus- STATEMENT OF THE RELEVANT FACTS HAVING A BEARING ON THE QUESTION(S) ON WHICH THE ADVANCE RULING IS REQUIRED. The present Advance Ruling application is being filed by M/s. Cargill India Private Limited ("hereinafter referred to as the "The Applicant'), a company incorporated under the laws of India, having its registered office at Y-65, Ground Floor, Hauz Khas, New Delhi- 16. The applicant is registered in the State of Maharashtra under Maharashtra Goods and Service Tax Act. 2017 having GST registration number 7AAACC3269JIZK with its principal place of business at
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e oils. Offering high quality food ingredients to serve food manufacturers and food service industry Origination, processing, storing, Trading and marketing a wide range of agricultural commodities such as grains, oilseeds, sugar and cotton Offering premix, compound feed and therapeutic care products to nourish and treat animals 1.3 In India, under food segment of Applicant's business there are three manufacturing units at Kandla, Gujarat, Kurkumbh, Maharashtra and Devengere, Karnataka. In addition to the manufacturing plants, the Applicant has depots, warehouses and branches across 23 states in India. 2. ABOUT THE PRODUCT-NATURAL ESTER DIELECTRIC FLUID 2.1 One of the products manufactured by the Applicant is Natural Ester Dielectric Fluid, commonly known as Envirotemp FR3. The said product is manufactured by the Applicant in its Kurkumbh plant in Maharashtra and thereafter sold from there. 2.2 Natural ester dielectric fluid is a proficiently emerging product/technology in the fiel
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virotemp FR3 has immensely helped utility companies and end consumers globally by increasing cost savings and efficiency without requiring major operational changes or capital investments. In India, the procurement of Natural Ester fluid is done through the tendering process. In most cases, the fluid is procured by the Original Equipment Manufacturers (OEMs) who further supply the fluid to the end user along with the transformer. The end user is generally a utility or an industrial client. In certain cases, these utilities directly procure the fluid as well. Due to this reason, the end customer buying or placing the purchase order to the Applicant varies from different transformer manufacturers present in the market to the different categories of end users. 3. MANUFACTURING PROCESS 3.1 The starting point in the production of vegetable oil based dielectric fluid is the vegetable seeds from trees. In case of the Applicant, the ester fluid is made from Soybean oil. After separation of sol
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f different fats or oils of this chapter , not elsewhere specified or included 4.2 As per First schedule of Central Excise Tariff Act, 1985, Excise duty was levied at the rate of 6% on all the products falling under Chapter heading 1518. Further, the said tariff heading was exempted by way of Notification no. 12/2012 – Central Excise dated 17th March 2012, implying that the effective Excise duty rate on this product was Nil under Excise law. 4.3 It is further submitted that under the erstwhile Maharashtra Value Added Tax Act, 2002 tariff heading 1518 was classified under serial no. 54 of the Schedule C as an Industrial input read with MVAT notification no. VAT-1505/CR-234/Taxation-I dated 1st September 2005, (Sl. No, 14). Thus, the effective rate of VAT on the said goods was 6%. 4.4 Under the Maharashtra Goods and Service Tax Act, 2017, Chapter heading 1518 is appearing under Schedule I and Schedule II of Notification No. 01/2017 – State Tax (Rate) dated 29th June 2017. The relevant ex
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heat in vacuum or in inert gas or otherwise chemically modified, excluding those of heading 1516; inedible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this chapter, not elsewhere specified of included 4.5 The product in question, i.e., natural ester dielectric fluid is nothing but vegetable oil which is chemically modified to make it fit for transformers and other electricity storage devices. From a reading of the above entries, it appears that the product in question falls under Entry 90 of Schedule I of the MGST Act and taxable at 2.5%. 4.6 Further, it also appears that Entry 27 of Schedule II of the said Notification covers animal fats and oil only. However, the Second part of the said entry, i.e., inedible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this chapter, not elsewhere specified of included creates an ambiguity with respect to the classification of th
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equity and good conscience. It is submitted that the Applicant is of the humble view that the product in question should be classified under Entry 90 of Schedule I of the said Notification and not under Entry 27 of Schedule II. In support of its view, the Applicant, hereby humbly submits its interpretation of the relevant Entries of Schedule I and II. It is submitted that the Applicant is of the humble view that the product in question should be classified under Entry 90 of Schedule I of the said Notification and not under Entry 27 of Schedule II. In support of its view, the Applicant, hereby humbly submits its interpretation of the relevant Entries of Schedule I and II in Annexure II below. STATEMENT CONTAINING THE APPLICANT'S INTERPRETATION OF LAW AND 'OR FACTS, AS THE CASE MAY BE, IN RESPECT OF THE QUESTION(S) ON WHICH THE ADVANCEE RULING REQUIRED The Applicant humbly submits that Natural Ester Dielectric Fluid, being a processed vegetable/soybean oil is classifiable under E
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cluding those of heading 1516 1.3 The above Entry essentially has three aspects namely – I.3.1 The Entry covers only vegetable fats and oils: 1.3.2 The vegetable fat and oil should have undergone one of the processes mentioned in the said entry, i.e., boiled, oxidised, dehydrated, sulphurised, blown, polymerised by heat in vacuum or in inert gas 1.3.3 The vegetable fat or oil may otherwise be chemically modified 1.4 It is submitted that the said Entry no. 90 is wide enough to cover all vegetable oils and fats which are chemically modified, Chemical modification is a process whereby, certain properties of the base oil is changed by adding chemicals to make the same Suitable for certain specific purpose. Owing to the unfavorable impact on the environment of mineral oil-based lubricants, there has been a steady increase in the demand for biodegradable, environment-friendly lubricants. Vegetable oils including soya bean oil is recognized as rapidly biodegradable and are thus promising cand
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and animal oils and their fractions, boiled oxidised, dehydrated suphaurised, blown, polymerised by heat in vacuum or in inert gas or otherwise chemically modified, excluding those of heading 1516 inedible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of the this chapter not eleswher specified of included 2.2. From a reading of the above entry, it appears the following points emerge – 2.2.1. The said Entry has two parts', the first part covers animal fats and animal oils and their fractions and the second part covers inedible mixtures or preparations of animal or vegetable fats and oils 2.2.2 The first part, i.e., animal fats and oils should have undergone one of the processes mentioned in the said entry, i.e., boiled, oxidised, dehydrated, sulphurised, blown, polymerised by heat in vacuum or in inert gas 2.2.3. Animal fat or oil may otherwise be chemically modified 2.2.4, The second part of the entry covers inedible mixture
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ted that there is no mixing or preparation of vegetable oil which is taking place. The process in the present case if purely of chemical modification of only soybean oil to convert it into a biodiesel fuel. Given the above. it is humbly submitted that in Natural Ester Dielectric Fluid. there is no mixture of or preparation of multiple vegetable oils or fats or their fractions. Hence, the product in question ought not to be classified in this Entry. 2.6. Without prejudice to the above, it is humbly submitted that the said entry covers only animal fats and oils which are chemically modified. When it comes to vegetable fats and oil, the said entry covers only mixtures and preparations of the same. Chemically modified vegetable fats and oil is only covered in Entry no. 90 of Schedule I of the Notification No. 01/2017 State Tax (Rate) under the MGST Act. Given the above, it is humbly submitted that Entry no. 27 of Schedule II of the Notification No. 01/2017 – State Tax (Rate) under the MGST
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cation and rate of various products under GST. As per the said Explanation, the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes or the First Schedule shall, so far as may be, apply to the interpretation of the said Notification No. 01/2017. 3.4. In terms of Rule 3(a) of Interpretative Rules of the Customs Tariff Act, 1975, when a specific entry is available for Classification, goods cannot be classified in a general entry, Taking a cue from the above, it is submitted that Entry no. 90 of Schedule I which covers chemically modified vegetable oil is much more specific entry as compared to Entry 27 of Schedule II which covers only preparation and mixtures of vegetable fats and oil and hence, the product in question ought to be classified in Entry 90 of Schedule I. 3.5. In this regard, reliance may be placed on the following judicial pronouncements – A. In the ease of
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further held that if the Department intends to classify the goods in question under a heading which is different from the heading under which an assessee classifies such goods, the burden of proof is on the Department which has to be discharged by adducing proper evidence. In the instant case, the onus was on the Department to justify the change of classification sought to be made by the impugned Circular, which onus, in my opinion, has not been discharged by the Department. Thus, it is evident that the impugned Circular is blatantly contrary to the said Rule and is thus, not sustainable. B. In the Case of Flora Agrotech versus The Commissioner of Central Excise, Vapi reported in 2015 (319) E.L.T. 333 (Tri. – Ahmd.) = 2014 (11) TMI 114 – CESTAT AHMEDABAD it was held as under A specific entry in the CETA, 1985 has to be the proper classification than a general entry in Chapter 39 of the CETA, 1985, as per the Rules of interpretation to the CETA, 1985. The Synthetic & Art Silk Mills
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grotex technical textile include Shed nets, mulch mats, crop covers, anti-hail nets, brid protection nets, fisheries nets, etc. Further office of Joint DGFT Surat while issuing Authorisation No. 5230009764, dated 15-11-2011 has held their product Warp Knitted Fabrics to be classifiable under ITCHS Code 60059000. As per Indian Standard ICS 59.080.70; 65.020.20 Agro Textiles-Shed Nets, for Agriculture & Horticulture purposes are fabrics made from plastic materials. C. In the case of The Commissioner of Central Excise, Aurangabad versus IVP Ltd. reported in 2004 (173) E.L.T. 128 (Tri. – LB) = 2004 (9) TMI 135 – CESTAT, NEW DELHI it Was held as under We also find force in the submissions of learned Senior Departmental Representative, that a specific Heading takes precedence over the general one. Heading 69.01 is a specific Heading for nozzles whereas its classification under Heading 85.15 is as general as parts of welding machines. Further, Rule 3 of the Interpretative Rules also provi
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the Entry no.27 of Schedule II is a residual or a general entry as the said entry ends with the words – not elsewhere specified or included. It is humbly submitted that by adding these words in the Entry, the intention of the legislature is to render this entry as a residual entry. Thus, if the products can be classified in any other more specific entry, it should be done as such and such specific entry shall be considered over the general entry In this regard, reference can be drawn from the case of H.P.L. Chemicals Ltd. versus Commissioner of Central Excise, Chandigarh, reported in 2006 (197) E.L.T. 324 (S.C.) = 2006 (4) TMI 1 – SUPREME COURT OF INDIA , wherein the hon'ble Supreme Court has held as under – The aforesaid reasoning of the Tribunal in our view is incorrect. Heading No. 38.23 (which was subsequently renumbered as Heading No. 38.24) is a residuary heading which applied only to residual products of chemical and allied industries, not elsewhere specified or included .
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categories of goods some goods have been specified as exempt from duty. The goods which have been specified for the purpose of exemption do not cease to stand as specified in the First Schedule only because those goods have been mentioned for the purpose of exemption. In other words, the residuary item No. 68 only deals with goods have not been specified also where in the First Schedule either for the purpose of imposition of duty or granting exemption from duty. That appears to be the clear and natural meaning of the phrase not elsewhere specified . To say not elsewhere specified means only not elsewhere specified for the purpose of imposition of duty is to introduce words of limitation which were not there in the statute. In my judgment, this appears to be the proper construction of tariff item No. 68. Even if two constructions are possible of the phrase not elsewhere specified the construction which favours the tax-payer must be preferred. Therefore, in my judgment, the expression a
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ectric Fluid is known as chemically modified biodiesel which is used as transformer fuel in general trade parlance. It is not known as mixture or preparation of vegetable fats or oils. 4.2. In this regard, reference may be made to the case of Atul Glass Industries Ltd. Versus Collector of Central Excise reported in 1986 (25) E.L.T. 473 (S.C.) = 1986 (7) TMI 90 – SUPREME COURT OF INDIA wherein the Hon'ble Supreme Court has held as under- The test commonly applied to such cases is how is the product identified by the class or section of the people dealing with or using the product. That is a test which is attracted whenever a statute does not contain any definition. It is a matter of common experience that the identity of an article is associated with its primary function. It is only logical that it should be so. When a consumer buys an article, he buys it because it performs a specific function for him. There is a mental association in the mind of the consumer between an article and
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HOULD BE FOLLOWED 5.1. It is submitted that while fixing the rates of goods and services under GST, the GST council largely followed the principle of equivalence vis-a-vis the rate structure under the pre-GST regime. 5.2 In this regard, it is pertinent to mention that under Central Excise, the said product was classified under Chapter Heading 1518 under the description, Animal or vegetable fats and oils and their fractions, boiled oxidised, dehydrated suphaurised, blown, polymerised by heat in vacuum or in inert gas or otherwise chemically modified, excluding those of heading 1516 inedible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of the this chapter not eleswher specified of included 5.3. As per First schedule of Central Excise Tariff Act, 1985, Excise duty was levied at the rate of 6% on all the products falling under Chapter heading 1518. Further, the said tariff item was exempted by way of Notification no. 12/2012 – Centr
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dule I of the Notification No. 01/2017 – State Tax (Rate) under the MGST Act and be subject to 2.5% State tax. PRAYER IN VIEW OF THE FACTS OF THE CASE AND SUBMISSIONS MADE IT IS HUMBLY PRAYED THAT THE HON'BLE AUTHORITY MAY KINDLY PASS THE FOLLOWING RULING – A. Declare Natural Ester Dielectric Oil to be classified under Entry 90 of Schedule I of Notification No. 1/2017-State Tax (Rate) dated 29th June, 2017 issued under the Maharashtra Goods and Services Tax Act, 2017 B. Declare the rate of State Tax under the Maharashtra Goods and Service Tax Act, 2017 for Natural Ester Dielectric Oil to be 2.5% ad voleram; C. Pass such other Ruling as this Authority may deem fit in the interest of justice, equity and good conscience. 03. CONTENTION – AS PER THE CONCERNED OFFICER The submission of the Assessing authority as follow – 'In respect of above dealers application for advance ruling, in deciding the correct rate of tax on the product NATURAL ESTER DIELECTRICAL FLUID viz. (Envirotemp FR
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nvirotemp FR3 is basically inedible mixture of vegetable oil & additive. This product is covered under schedule II and taxable rate of 6% state tax (SGST) and 6% central tax (CGST) i.e. covered in sr.no. 27 of schedule II on following material fact- 1. Definition of food as given in the Food Safety and Standard Act , 2006 is given below As per sec 3 clause J of FDA Act 2006 (j) food means any substance, whether processed, partially processed or unprocessed, which is intended for human consumption and includes primary food, to the extent defined in clause (ZK) genetically modified or engineered food or food containing such ingredients, infant food, packaged drinking water, alcoholic drink, chewing gum, and any substance, including water used into the food during its manufacture, preparation or treatment but does not include any animal feed, live animals unless they are prepared or processed for placing on the market for human consumption, plants prior to harvesting, drugs and medici
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, transport or holding of such food results, or may be reasonably expected to result (directly or indirectly), in it or its by-products becoming a component of or otherwise affecting the characteristics of such food but does not include contaminants or substances added to food for maintaining or improving nutritional qualities; The list of additives approved by Food Safety & Standard Act 2006 is attached separately. The additives required for production of EFR3 are not seen covered in the Food additives list approved by FDA Act. As per provision of FDA Act Food license is mandatory for each food product. In the instant case, the applicant has not furnished any document showing the product as has been approved by FDA as food products. If at all impugned product is a food item & the applicant has been approved by the FDA for the same then the subsequent dealer's would also require food product license. In the present case, going by names, as stated by applicant, the customers
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n manufactured for human consumption only. It is categorically being pointed out that, the applicant's product is inedible mixture or preparation of vegetable fats or oil or fractions of different fats. As per applicant s say and information available for the same product of another manufacturer [Cooper Envirotemp FR 3] the product is derived by mixing some additives to soya bean oil. As per the competitor manufacturer s literature 5% mass fraction is related to additives & 95% mass fraction relates to Degummed soya bean oil. Thus considering all factors, discussed at length in the foregoing paras, it is once again re-iterated that the applicant's product is a inedible mixture of vegetable oil/ fats falling under HSN 1518 and therefore liable for 12% GST [6% CGST + 6% SGST] covered by entry No. 27 of schedule II of Notification No. 01/2017 dtd 29.06.2017." 04. HEARING The case was taken up for hearing on dt.18.01.2018 when Sh. Rajat Bose, Advocate, attended on behalf o
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2018 to submit a certified test report from an authorized Laboratory by dt.25.02.2018 for decision in the matter as the Authority intends to know as to what are the other chemicals or oils mixed with soyabean oil to make it their final product. However, the details as asked for were not submitted. He requested to grant him time till dt.08.03.2018 to submit the information as called for. They submitted a copy of an Analysis Report as given by Fare Labs Private Limited, Gurgaon, Haryana on dt.14.03.2018. The jurisdictional officer, Sh. S.A. Rajput, Dy. Commissioner of State Tax (LTU-E-614) Pune was present on all the three hearings. He has tendered a written submission in the matter. 05. OBSERVATIONS We have gone through the facts of the case. The product before us is described as "Envirotemp FR3". The packing of the product describes "Envirotemp FR3 Fluid" as Fire Resistant Natural Ester Dielectric Coolant for transformers and related electrical apparatus. The produ
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and its decomposition products are removed, Gossypol-like pigments are removed, Toxic agents, such as polycyclic aromatic hydrocarbons are removed (if carbon is used in quantity). Step 4 After bleaching, the soya bean oil is deodorized. Deodorizing is essential for removing undesired components such as moisture, color, and odor that negatively impact the taste, smell, and appearance of the final product. Effective deodorization is a complex vacuum steam distillation process that involves using high-pressure steam to heat the oil to a precise temperature for stripping impurities and then cooling it to retain the natural oil characteristics. Step 5 After the above process, Refined, Bleached and Deodorized (RBD) Soya Bean Oil is obtained. Step 6 We add some additives to RBD Soya Bean oil and do pre-treatment, after pre-treatment filtration process is undertaken to strain out any impurities that may exist in the oil to make it pure. Step 7 After addition of additive we do filtration. Step
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. The report as submitted by the applicant states as under – "FARELABS FOOD ANALYSIS & RESEARCH LABORATORY Testing, Calibration, Proficiency Testing & Training Services Test Report Sample Particulars: Nature of sample & No. of samples Envirotemp FR3 Fluid (One Sample) Brand Name, if any None Batch No. 214 Sample Quality & Packing 500ml, Pet Bottle Date of Performance of test 10th – 13th March, 2018 Method of Sampling Sample is provided by Cargill India Pvt. Ltd. Analysis Report S. No. Parameter Test Result Protocol 1. Vegetable Oil, % by wt. 98.5 AOCS Ea 8 -58 2 Number of Vegetable present Oils 1 FL/SOP/HPLC -09 3 Other Chemicals, % 1.0 FL/SOP/FC – 280 Inference : The sample is one single Vegetable oil only, there is no blending with any other oil is detected." As can be seen, the test report also gives no details of the additives and chemicals which are added while manufacturing the impugned product, Let us see how the inference and the incomplete particulars
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illed transformers 15-20 percent smaller and can deliver up to 20 percent overload capacity. What 's more, FR3 fluid actually protects the transformer insulation paper, making it last longer-in fact, five to eight times longer than transformers filled with mineral oil. https://www.cargill.com/doc/1432076502628/s10-storage-and-handling-tds.pdf Envirotemp™ FR3™ fluid is a natural ester-based dielectric coolant formulated for use in distribution and power transformers. Envirotemp FR3 fluid is primarily used in new transformer applications. It has also been applied in transformer retrofill, new switchgear, specialty power supplies, and other applications. ENVIRONMENTAL Envirotemp FR3 fluid is formulated from vegetable Oils and performance enhancing additives. Some other information can also be had a look at – http://www.netaworld.org/sites/default/files/public/neta-journals/NWfa04-Chem%20Per.pdf-'Natural Ester Dielectric Fluids" by Lance R. Lewand Doble Engineering
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ME TYPE MANUFACTURER BIOTEMP ® Comprised mostly of mono-unsaturated high oleic acid triglyceride vegetable oils. The oleic acid group is defined as having one carbon double bond, part of the eighteen carbon atoms in the hydrocarbon chain of a carboxylic acid. Examples of high oleic oils are sunflower, safflower, and rapeseed (canola). ABB Inc. BIOTRANS ® A mixture of partially hydrogenated soybean oil high in oleic acid content, methyl esters produced from soybeans, palm or coconut oils used to thin the dielectric liquid Cargill Envirotemp ® FR3 Edible-seed oil based dielectric liquid. It is a natural ester (triglyceride – fatty acid ester) containing a mixture of saturated and unsaturated fatty acids with 14 to 22 carbon length chains containing one to three double bonds. Suitable vegetable oils, which may be used independently or combined, include: soya, sunflower, and rapeseed (canola). Cooper Power Systems Coconut Oil Coconut Oil University of Moratu
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g several techniques. Two techniques are used for obtaining the crude oil from oil seeds. Batch pressing is the first technique and has been used for some time. Batch processing consists of applying either hydraulic pressure to the vegetable seed or pulp via hydraulic press or through the use of a rotating screw or worm and is best suited for softer crops like sunflower and rapeseed. Another refining process involves crushing the seeds and extracting the oil with a solvent such a hexane and is better suited for harder crops such as soybeans. A degumming step is necessary to remove materials other than oil, such as chlorophyll. This is performed either by physical separation, which takes time, or by combining the material with water and caustic material to accelerate the separation process. The next step, a bleaching process that is part of a neutralization process, also subjects the oil to clay treatment to remove polar compounds. Deodorizing the oil is accomplished via steam distillat
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e only allowed to contain DBPC (2,6-ditertiary-butyl paracresol, BHT) or DBP (2,6-ditertiary-butyl phenol) in concentrations up to 0.3 percent. DBPC and DBP have had a lengthy history of use in transformer oil and no adverse effects have been documented. The U.S. patents for BIOTEMP ®, BIOTRANS ® and Envirotemp ® FR3 ® incorporate enough variation into the descriptions of each liquid that the exact combination and concentration cannot be determined. Most of these additives have been well-established in the chemical and food industries for some time, but it is not fully known if there are any adverse characteristics when used in transformers over a long period. The table below provides a listing of the additives and their described use. It must be emphasized that not all of these additives are used but the possibility for some or combination thereof to be used does exist. In some of the dielectric liquids listed in the table, the additive package can make up as much as t
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d/or acrylic oligomers and polymers) Antimicrobial agent: (BHA, potassium sorbate, sorbic acid, monoglycerides and/or Vitamin E) Conclusions Natural esters have been used as a dielectric liquid since the invention of the oil-filled transformer. Because of their chemistry these liquids have some limitations in their use. Recent advances in research and refining and additive packages have produced a new breed of natural esters that try to address these limitations …………………… http://www.gegridsolutions.com/alstomenergy/grid/Global/CleanGrid/Resources/Documents/Ester%20Oils%20-%20Think%20Grid%20n%C2%B07%20.pfd While there are data and international standards galore for mineral oils, there are as yet no IEC standards addressing the composition or testing of the natural ester oils with their different chemical composition. This lack of standards could be seen as one of the limiting factors with regard to the initial rale of implementation
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scription of Goods Rate [CGST + MGST] 27. 1518 Animal fats and animal oils and their fractions, boiled, oxidised, dehydrated, sulphurised, blown, polymerised by heat in vacuum or in inert gas or otherwise chemically modified, excluding those of heading 1516; inedible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this chapter, not elsewhere specified of included 5% [2.5 + 2.5] 90. 1518 Vegetable fats and oils and their fractions, boiled, oxidised, dehydrated, sulphurised, blown, polymerised by heat in vacuum or in inert gas or otherwise chemically modified, excluding those of heading 1516 12% [6+6] We shall also reproduce herein the position as appearing in the Customs Tariff Heading 1518 ANIMAL OR VEGETABLE FATS AND OILS AND THEIR FRACTIONS , BOILED, OXIDISED, DEHYDRATED, SULPHURISED, BLOWN, POLYMERISED BY HEAT IN VACUUM OR IN INERT GAS OR OTHERWISE CHEMICALLY MODIFIED, EXCLUDING THOSE OF HEADING 1516 ; INEDIBLE MIXTURES OR PR
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oiled, oxidized, dehydrated, sulphurised, blown, polymerized by hear in vacuum or in inert gas or otherwise chemically modified, excluding those of heading 1516; • Part 2 – Inedible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this Chapter, not elsewhere specified or included. b. Of the Tariff Heading 1518, schedule entry 90 covers portion relating to vegetable fats and oils and their fractions AND schedule entry 27 covers portion relating to animal fats and oils and their fractions. c. The schedule entry 27, additionally, covers the portion of the Tariff Heading 1518 pertaining to inedible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of Chapter of 15. d. The HSN Notes in respect of the part 1 (as reproduced above) of Heading 1518 say thus- "This part covers animal or vegetable fats and oils and their fractions which have been subjected to processes which mod
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om vegetable oils. The final product obtained after subjecting soyabean oil to different processes is used as a coolant for transformers. The end product has a distinct identity in the sense that when one desires to have vegetable oil, the impugned product would not be accepted. The short point that we would like to make is that the impugned product is not soyabean oil per se. The part I (as reproduced above) of Heading 1518 speaks of certain processes which have been subjected to vegetable and animal oils. But the HSN Notes say that despite undergoing these processes, the vegetable or animal oils should retain their original fundamental structure. In the present case, we have a final product which is a transformer coolant. Though the Test Report shows the percentage of the chemicals to be 1% or the vegetable oils to be at 98.5% would not mean that a new commodity has not been produced. We have seen above an extract from an article that while there are data and international standards
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is described as a "fluid". Is a fluid same as an oil? A fluid is different from even a liquid, let alone oil. The product is not being sold as a modified vegetable oil but as the product which is resulting from the adaptation of the vegetable oils to obtain a coolant for a transformer. In view thereof, we are convinced that the impugned product would not be covered by the part 1 (as reproduced above) of Heading 1518. f. We now come to part 2 (as reproduced above) of Heading 1518. This part covers inedible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of the Chapter 15. The present product, as discussed above, is a preparation from vegetable oil. It is derived from soya bean oil. In addition, it is inedible. Therefore, it could very well be covered by the description "inedible preparations of vegetable oils'. Now the aspect which remains to be seen is " not elsewhere specified or included". We have not
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easons as discussed in the body of the order, the questions are answered thus – Q. Whether Natural Easter Dielectric Fluid (hereinafter referred to as 'Envirotemp FR3') fall under Serial no. 90 of Schedule I of Notification No, 1/2017-State Tax (Rate) dated 29th June, 2017 issued under the MGST Act, 2017 and Notification No. 1/2017- Central Tax (Rate) dated 28th June, 2017 issued under the CGST Act, 2017 is taxable at the rate of 2.5 0/0 (State tax and Central tax)? A. Answered in the negative. Q. Whether Envirotemp FR3 falls under Serial no. 27 of Schedule II of Notification No. 1/2017-State Tax (Rate) dated 29th June, 2017 issued under the MGST Act, 2017 and Notification No. 1/2017-Central Tax (Rate) dated 28th June, 2017 issued under the CGST Act, 2017 is taxable at the rate of 6% (State tax and Central tax)? A. Answered in the affirmative. – Case laws – Decisions – Judgements – Orders – Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – T
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