In Re: M/s. Boldrocchi India Pvt. Ltd.
GST
2019 (2) TMI 1003 – AUTHORITY FOR ADVANCE RULING, HARYANA – 2019 (22) G. S. T. L. 135 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, HARYANA – AAR
Dated:- 11-9-2018
AAR No. HAR/HAAR/R/2018-19/12 (In Application No. 12/2018-19
GST
SANGEETA KARMAKAR AND VIJAY KUMAR SINGH, MEMBER
Present for the Applicant: Sh. Abhishek, Manager (Fin. & Accts.) alongwith Sh. Rijul Kalra, Asst. Manager (Proposals).
1. M/s. Boldrocchi India Pvt. Ltd., 18th 19th Floor, Tower-4, Office No.1801, 1802 1907, DLF Corporate Green, Sector-74A, Gurgaon, Haryana [hereinafter referred to as the “applicant”], has submitted that their customer is setting up a waste to energy plant in Andhra Pradesh and for which they require WTE PLANT BOILER'S FLUE GAS CLEANING SYSTEM. The customer has also requested to supply these goods under Chapter 84 charging tax @5% according to the said entry as under:-
* Following renewable energy devices & parts for their m
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rs flue gas cleaning system (FGCS) 600 TPD to waste to energy project would be under HSN Code 84 and rate of tax would be 5%
4. The applicant further submits that:
1. The HSN Code No. 84 05 10 90 clearly mentions “waste to energy plants/devices” which implies the applicability of 5% GST.
2. The Ministry of Finance and Ministry of New and Renewable Energy has specifically exempted such equipments and machinery from indirect taxes in the past also. Further the conditions of law in GST remains the same and govt intends to promote the use of Renewable Energy by categorizing Waste to Energy Plants and their devices at 5% IGST. This fact can be verified from the Notification No. 33/2005 Central excise and F. no. 460/44/2005-Cus V dated 03.09.2005 (attached herewith) issued by Ministry of Finance and also by certificate No. 10/05/2005- UICA- Part file dated 06.10.2010 issued by Ministry of New and Renewable Energy to M/s. Timarpur Okhla Waste Management Private Limited.
3. The purchase or
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ST), Gurugram (South) had attended the proceedings as concerned officer. The applicant had reiterated the submissions made in their application. Since, the ruling sought was covered under section 97 (2), clause (a) and (b), the application was admitted and after hearing the applicant and concerned officer in detail, the decision on merit was reserved which is being released today.
DISCUSSIONS AND FINDINGS OF THE AUTHORITY
7. We have carefully gone through the facts and records of the case. In the instant case, the applicant seeks advance ruling in the matter of classification and rate of GST applicable on the parts being supplied for setting up waste to energy plant.
8. The functioning of the waste to energy plant has been explained by the applicant in the following manner, which includes collection/storage of Municipal Solid Waste at site and involves following processes.
(i) Mechanical Sorting.
(iii) Burning of sorted municipal solid waste in boiler for combustion and steam gene
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hrough acid gas (HCL, SO2) of the outlet loop. Flue gas flowing out from the reactor then goes into the bag filter for removal of micro particles including hazardous substances.
(iv) Turbine
(v) Air cooled condenser.
10. The applicant seeks the HSN classification code for the above explained “waste to energy plant boiler's flue gas cleaning system”, as explained in para 7(iii) above. As per the functioning/working of the impugned product, it is a pollution control device which merits classification in chapter heading 8421, which is also reproduced below.
8421
CENTRIFUGES, INCLUDING CENTRIFUGAL DRYERS; FILTERING OR PURIFYING MACHINERY AND APPARATUS, FOR LIQUIDS OR GASES
–
Centrifuges, including centrifugal dryers:
84211100
Cream separators
u
7.50%
–
84211200
Clothes-dryers
u
7.50%
–
842119
Other :
84211910
Bowl centrifuges
u
7.50%
–
84211920
Basket c
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ke air filters for internal combustion engines
u
7.50%
–
842139
Other :
84213910
Air separators to be employed in the processing, smelting or refining of minerals, ores or metals; air strippers
u
7.50%
–
84213920
Air purifiers or cleaners
u
7.50%
–
84213990
Other
u
7.50%
–
–
Parts :
84219100
Of centrifuges, including centrifugal dryers
u
7.50%
–
84219900
Other
u
10%
–
Thus, the impugned product is classifiable under heading 8421 of the first schedule to the Customs Tariff Act, 1975, being filtering or purifying machinery and apparatus for gases.
11. As regards rate of GST on this product “waste to energy plant boiler's flue gas cleaning system” falling under chapter heading 8421, it is observed that in modern day power plants, even those running on municipal waste, such as waste to energy plants/devices, pollution control equipment/machinery is an integral part of such power
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