In Re : M/s. Aqua Machineries Pvt. Ltd.
GST
2018 (6) TMI 516 – AUTHORITY FOR ADVANCE RULINGS, GUJARAT – 2018 (14) G. S. T. L. 103 (A. A. R. – GST), [2018] 2 GSTL (AAR) 89 (AAR)
AUTHORITY FOR ADVANCE RULINGS, GUJARAT – AAR
Dated:- 17-1-2018
Advance Ruling No. GUJ/GAAR/R/2017-18/4
GST
Mr. R.B. Mankodi, Member And Mr. G.C. Jain, Member
For The Applicant : Shri K.A. Nagar, Consultant
RULING
The applicant, M/s. Aqua Machineries (Pvt.) Ltd. manufactures and supplies Power Driven Pumps (falling under Chapter Heading 8413), which are primarily designed for handling water, which is of either clear or raw or storm or waste or sewerage. The said pumps are not fitted with measuring device. As the different items falling under Chapter Heading 8413 attract different rates viz. 5%, 12% or 28% under Goods and Services Tax, the applicant has raised the following questions for advance ruling –
(i) There is no specific description of Chapter Heading 8413 for the Power Driven P
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riff, which attract the rate of 12%.
3. It is further submitted that the said goods primarily designed for handling water, and thus the same cannot be treated as the pumps for dispensing fuel, lubricants, gas or chemical, which attract GST @ 28%. It is also submitted that all other goods for which GST rate are not specified elsewhere are subject to GST @ 18%, but since the impugned Power Driven Pump primarily meant for handling water falls under the aforesaid description, the GST rate of 18% is not applicable to the said goods.
4. In the further submissions dated 30.11.2017, the applicant referred and relied on the decisions in the cases of Modi Industrial Ltd. Vs. Collector of Central Excise, Bombay [1994 (73) ELT 642 (Tri.)] and CCE Vs. Bank Morse (I) Ltd. [1993 (68) ELT 153 (Tribunal)] and [1996 (86) ELT A76 (S.C.)]
5. The Goods and Services Tax and Central Excise Commissionerate, Ahmedabad South informed that as per the description given by the applicant, the product namely 'Pow
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Act, 2017'). The said Sl. No. 192 of Schedule II of Notification No. 1/2017-Central Tax (Rate), dated 28.06.2017 reads as follows :-
SCHEDULE II – 6%
S. No.
Chapter/Heading/ Sub-heading/Tariff item
Description of Goods
(1)
(2)
(3)
192
8413
Power driven pumps primarily designed for handling water, namely, centrifugal pumps (horizontal and vertical), deep tube-well turbine pumps, submersible pumps, axial flow and mixed flow vertical pumps Power driven pumps primarily designed for handling water, namely, centrifugal pumps (horizontal and vertical), deep tube-well turbine pumps, submersible pumps, axial flow and mixed flow vertical pumps
8. The issue has been raised by the applicant on the ground that the specific description of the term 'water' has not been given at aforesaid Sl. No. 192 of Schedule – II of Notification No. 1/2017-Central Tax (Rate), dated 28.06.2017 and exact nature of water (clear, raw, storm, waste or sewage) has not been defined.
9.1 We observe that
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nse in which it is defined but in the absence of any definition being given in the enactment the meaning of the term in common parlance or commercial parlance has to be adopted. ……….”
9.2 This view was upheld by Hon'ble Supreme Court in the case of Oswal Agro Mills Ltd. Vs. Collector of Central Excise [1993 (66) E.L.T. 37 (S.C.)]. While reiterating the principle that in absence of statutory definitions, they have to be construed according to their common parlance understanding, Hon'ble Supreme Court, in the case of Commissioner of Central Excise Vs. Connaught Plaza Restaurant (P) Ltd. [2012 (286) E.L.T. 321 (S.C.)], has referred to various decisions on the subject and observed as follows :-
Common Parlance Test :
“18. Time and again, the principle of common parlance as the standard for interpreting terms in the taxing statutes, albeit subject to certain exceptions, where the statutory context runs to the contrary, has been reiterated. The application of the common parlance
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es and Earth moving implements, articles of iron or steel Wire, Tyre bead wire rings intended for use in the manufacture of tyres for cycles and cycle-rickshaws, Belt lacing of steel, Belt fasteners for machinery belts, Brain covers, plates, and frames for sewages, water or similar system, Enamelled iron ware (excluding utensil & sign board), Manufactures of stainless steel (excluding utensils), Articles of clad metal
Thus, from the plain reading of the aforesaid entry, it is evident that the terms 'sewage' and 'water' have been separately used in the said Notification and therefore the term 'water' cannot be said to include 'sewage' or waste. Had the intention of the legislature been to include 'sewage' also in the term 'water' for the purpose of Notification No. 1/2017-Central Tax (Rate), then the term 'sewage' and 'water' would not have been separately used, as is the case at Sl. No. 238 of Schedule – III of the said Notification.
10.3 In common parlance, when one refers to 'water
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