2019 (1) TMI 484 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – TMI – Classification of goods – Solar Evacuated Tube Collector (ETC) – whether the goods fall under CETH 8419 19 or otherwise? – benefit of Sl.No.234, Schedule-I of Notification No.1/2017 Integrated Tax (Rate) dated 28.06.2017 – Held that:- The solar water heater and system (domestic type) has been classified under heading 8419 19 20 and the parts of instantaneous or Storage Water heaters (domestic type) are covered under heading 8419 90 10 – The product in the instant case is part of the solar water heater system, which basically comprises of the said tubes and an insulated tank – the instant product merits to be a part of solar water heater systems under the chapter heading 8419.
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Whether the product of the applicant is entitled for concessional rate under SL.No.234 of the Notification supra or not? – Held that:- The solar water heater in question does not appear to be a ‘Solar Power Based Device’. ‘Solar Power based
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y Rajesh, Advocate ORDER UNDER SUB-SECTION (4) OF AND SERVICES TAX ACT, 2017 AND UNDER SUB-SECTION (4) OF SECTION 98 OF KARNATAKA GOODS AND SERVICES TAX ACT. 2017 1. M/s. Nuetech Solar Systems Private Limited, BM Shankarappa Industrial Estate Road, Sunkadakatte, Bengaluru-560091, having GSTIN number 29AABCN6398LIZO, have filed an application for Advance Ruling under section 97 of CGST Act,2017, KGST Act, 2017 & IGST Act, 2017 read with Rule 104 of CGST Rules 2017 & KGST Rules 2017, in form GST ARA-01 discharging the fee of ₹ 5,000/- each under the CGST Act and the KGST Act. 2. The Applicant, a Private Limited Company, registered under the Goods and Services Act, 2017 , claims to be an innovative Solar Thermal Energy Company, focused on providing energy solutions by using Concentrated Technology & into the business of Solar Water Heaters (SWH) from last 26 years. The Applicant imports Vacuum Tubes (Evacuated Tube Collector / Vacuum Tube Collector) for manufacture of So
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y as their input. 5. They further submit that the Solar Power based Devices need Solar Panels to covert light energy and the ETC is One such mode of panels. The Solar Water Heater works on Black body heat absorption principle . The energy generated by this device is used to heat water and not for any other home consumption and no other form of energy or device is required as an intermediary between this device and heating. Therefore the applicant claims the said device as Solar Power based Device. 6. The Applicant claims the classification of the instant product ETC under 8419 19 and thereby claims the benefit of Sl.No.234, Schedule-I of Notification No.1/2017 Integrated Tax (Rate) dated 28.06.2017, effective from 01.07.2017. In view of the -above, the applicant sought advance ruling in respect of the following question: Whether Evacuated / Vacuum Tube Collectors (VTC) falls under Chapter 84 of HSN which is covered in SL no 234 of Schedule -I under notification 1/2017 IGST rate dated 2
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storage tank. They further contend that their product (ETC tubes) does not fall under Sl.No. 121 of Schedule – IV, attracting the GST at the rate of 14%, as the said entry is for the water heaters other than solar water heater & system. 7.2 The Applicant, in response to the query raised in the hearing, vide their letter dated 05.12.2018 submitted the following additional submissions. a) The Solar evacuated tube collector is a part of solar water heater and is used specifically for the particular function and in terms of Section notes, of Section XVI, which covers chapters 84 and 85, it is very Clear that parts, if suitable for use solely or principally with a particular kind of machine are to be classified with the machine of that kind. Therefore the ETC tubes are classifiable under Chapter 84 heading 19. Further explanatory notes to Chapter 84 clarifies that solar water heater is included in the chapter whether used for industrial or domestic purposes. b) In view of the above, so
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ed the instant application dated 03.07.2018 for advance ruling, seeking clarification as to Whether Evacuated / Vacuum Tube Collectors (VTC) falls under Chapter 84 of HSN which is covered SL no. 234 of Schedule -I under notification 1/2017 IGST rate dated 28.06.2017 ? 8.2 The Applicant, in the instant ease, presumes that their product falls under Chapter 84 and hence claims the benefit of the concessional rate in terms of the aforesaid notification. Therefore the issues to be decided are (i) The correct / right classification of the product ETC and (ii) Whether the said product is entitled for the concessional rate as per No. 234 of Schedule-I of Notification No. 1/2017 Integrated Tax (Rate). 8.3 The first part of the question on which the Applicant sought advance ruling is Whether Evacuated / Vacuum Tube Collectors (VTC) falls under Chapter 84 or not? The Applicant claims the classification of their product ETC under Chapter 84 of Section XVI of Customs Tariff Act 1975, which deals wi
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Notification supra or not. The notification No.1/2017-Integrated Tax (Rate) dated 28.06.2017, effective from 01.07.2017, under Sl.No. 234 of Schedule l, notifies the Integrated Tax of 5% in respect of the following goods falling under Chapter 84 or 85. Following renewable energy devices & parts for their manufacture (a) Bio-gas plant (b) Solar power based devices (c) Solar power generating system (d) Wind mills, Wind Operated Electricity Generator (WOEG) (e) Waste to energy plants / devices (f) Solar lantern/solar lamp (g) Ocean waves/tidal waves energy devices/plants 8.5 In view of the above, to claim the concessional rate of 5%, the product must satisfy the conditions namely (i) It must fall under either Chapter 84 or 85, (ii) It must be a Solar Power based device (renewable energy device) or part thereof. Therefore we proceed to discuss whether the product ETC is a Solar Power based device or part thereof or not, as the product falls under Chapter 84. 8.6 The product Evacuated T
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lectric-energy which may heat the water. Here the solar energy is absorbed by the coated surface of the inner tubes, thereby, heating them, which in turn heats the water contained therein. Thus the solar water heater in question does not appear to be a Solar Power Based Device . Now it is pertinent to understand the term Power as used in the term Solar Power Based Device . 8.7 The term Power has not been defined either in the GST Acts or explained in the Chapter / Section Notes of Customs Tariff. Therefore we place reliance on The Electricity Act 2003 to delve into the definition / meaning of the term Power . In this regard our attention goes to Sl.No.50 of Part-I of The Electricity Act , wherein the term Power System is defined as under: Power System means all Aspects of generation, transmission, distribution and supply of electricity and includes one or more of the following namely :- a) Generating stations; b) Transmission or main transmission lines; c) Sub-stations; d) Tie-lines: e
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