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) – Classification of goods – Supply of goods – applicable rate of GST – Power Driven Pumps used for dispensing an exact nature of water such as clear, raw, storm, waste or sewerage – Whether the goods supplied by the applicant are covered under Sl. No. 192 of Schedule II of N/N. 1/2017-Central Tax (Rate), dated 28.06.2017 issued under the Central Goods and Services Tax Act, 2017 and corresponding Notifications issued under the Gujarat Goods and Services Tax Act, 2017 and the Integrated Goods and Services Tax Act, 2017? – Interpretation of statute.
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Held that:- It is now well settled principle of interpretation of statue that the word not defined in the statute must be construed in its popular sense, meaning ‘that sense which people conversant with the subject matter with which the statue is dealing would attribute to it’. It is to be construed as und
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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 Pumps used for dispensing an exact nature of water such as clear, raw, storm, waste or sewerage, and hence whether the description 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 is applicable to the applicant; (ii) Whether the applicant is eligible for GST rate of 12% on supply of goods in question. 2. The applicant submitted that the goods in question are pumps prim
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oods. 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 Power Driven Pumps, primarily designed for handling water , appears akin to the entry at serial no. 192 of Schedule II of Notification No. 1/2017-Integrated Tax (Rate) dated 28.06.2017. 6. We have considered the submissions made by the applicant in their application, their further submissions and at the time of personal hearing. We have also considered the views of the Goods and Services Tax and Central Excise Commissionerate, Ahmedabad South. 7. We observe that the main issue involved in this case is whether the goods supplied b
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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 it is now well settled principle of interpretation of statue that the word not defined in the statute must be construed in its popular sense, meaning that sense which people conversant with the subject matter with which the statue is dealing would attribute to it . It is to be construed as understood in common language. In the case of Indo International Industries Vs. Commissioner of Sales Tax, U.P. [1981 (8) E.L.T. 325 (S.C.)], Hon ble Supreme Court has held as follows : 4. It is well settled that in interpreting Items in statutes like the Excise Tax
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ral 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 test is an extension of the general principle of interpretation of statutes for deciphering the mind of the law maker; it is an attempt to discover the intention of the Legislature from the language used by it, keeping always in mind, that the language is at best an imperfect instrument for the expression of actual human thoughts. [(See Oswal Agro Mills Ltd (supra)]. 10.1 We, therefore examine whether the term water at Sl. No. 192 of Schedule – II of Notification No. 1/2017-Central Tax (Rate), dated 28.06.2017 refers to clear and raw water or it al
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nd 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 , it is understood in the sense of clear or raw water and not in the sense of sewage . In commercial parlance also, pumps primarily designed for handling water and other pumps or pumps designed for handling sewage are distinctly known, which is evident from the fact that the applicant was showing water submersible pumps and other submersible pumps separately in the periodic returns (ER-1) being filed by them with the authorities in the erstwhile Central Excise regime. 11. We have also gone through the decisions relied upon by the applicant and observe that the said decisions rendered
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