In Re: M\/s. Switching Avo Electro Power Limited
GST
2018 (8) TMI 1071 – APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL – 2018 (15) G. S. T. L. 636 (App. A. A. R. – GST)
APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL – AAAR
Dated:- 25-7-2018
Appeal Case No. 04\/WBAAAR\/Appeal\/2018
GST
MR. RAKESH KUMAR SHARMA, AND MS. SMARAKI MAHAPATRA, MEMBER
\nPresent for the Appellant: Mr. Ravi Raghavan, Advocate
\nThis Appeal has been filed by M\/s. Switching Avo Electro Power Limited, holding GSTIN 19AAICS2473C1ZC (hereinafter referred to as the “Appellant”), on 10.05.2018 against the Ruling dated 21.03.2018 pronounced by the West Bengal Authority for Advance Ruling. The Appeal was filed beyond the stipulated period of thirty days after the date of communication of Advance Ruling. The Appellant has prayed for condonation of delay on the ground of illness of one of its Directors, which was allowed and the matter heard.
\nThe Appellant supplies power solution products and is <\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n s held by the West Bengal Authority for Advance Ruling = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n 2017, under the West Bengal Goods and Service Tax Act, 2017 (as amended from time to time provide for rate of tax applicable to intra-State supply and classification of relevant goods as mentioned in the table below: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n pellant relied on T.I. Miller Ltd. Vs Union of India and Another [1987(31) ELT 344)] in support of contention that a thing is a part of the other only if the other is incomplete without it and an accessory is not essential but adds to its convenience. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n of static converter (UPS) and external storage battery is a composite supply or mixed supply, as defined under the GST Act. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" In Re: M\/s. Switching Avo Electro Power LimitedGST2018 (8) TMI 1071 – APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL – 2018 (15) G. S. T. L. 636 (App. A. A. R. – GST)APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL – AAARDated:- 25-7-2018Appeal Case No. 04\/WBAAAR\/Appeal\/2018 GSTMR. RAKESH KUMAR SHARMA, AND MS. SMARAKI MAHAPATRA, MEMBER Present … Continue reading “In Re: M\/s. Switching Avo Electro Power Limited”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-13301","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13301","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13301"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13301\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13301"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13301"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13301"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nBefore entering into merit of the appeal it is necessary to see the relevant definitions of the GST Act, which are as under:
\nComposite supply defined under Clause (30) of Section 2 of GST Act, 2017-
\n “composite supply” means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply.
\n Illustration: Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply;
\nPrincipal supply has also been defined under Clause (90) of Section 2 of GST Act, 2017-
\n “principal supply” means the supply of goods or services which constitutes the predominant element of a composite supply and to whic<\/p>\n
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\nSchedule
\nSl.
\nCGST@
\nWBGST@
\nChapter\/ Heading\/ Sub-heading\/ Tariff item
\nDescription of Goods
\nRemarks
\nIV
\n138
\n14%
\n14%
\n8506
\nPrimary Cells and primary batteries
\nOmitted on 15.11.2017 vide Notification No. 41\/2017Central (Rate) dated 14.11.2017
\nIII
\n376A
\n9%
\n9%
\n8506
\nPrimary Cells and primary batteries
\nInserted on 15.11.2017 vide Notification No. 41\/2017Central (Rate) dated 14.11.2017
\nIV
\n139
\n14%
\n14%
\n8507
\nElectric accumulators, including separators therefor, whether rectangular (including square)
\n
\nIII
\n375
\n9%
\n9%
\n8504
\nTransformers Industrial Electronics, Electric Transformer; Static Converters (UPS)
\n
\nThe Appellant submitted written submissions and argued that when UPS comprising of static converter and an external battery is supplied it fa<\/p>\n
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\nIn Kerala State Electronics Dev. Corp. Ltd. Vs Collector of Central Excise, Cochin [1994 (71) ELT 508], Hon'ble Tribunal held that the value of battery was includible in the assessable value of the 'uninterrupted power supply' as the existence of the uninterrupted factor is possible only because of the battery part of the system making the battery an essential part of the system. This decision was also relied upon in the case of Commissioner of Central Excise Vs Electronics and Controls [1998 (27) RLT 816 (CEGAT)] holding that UPS can function without battery for mere conditioning of power but to provide uninterrupted power supply, battery is essential pre-requisite.
\nThe Appellant submitted that in Mangalore Chemicals & Fert<\/p>\n
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\nIn addition to above, the Appellant also cited some Judgments of House of Lords and European Court which dealt with the nature of services and not goods.
\nThe matter is examined in the light of the arguments put forth by the Appellant and the provisions of the GST Act.
\nThere is no denying of the fact that an in-built battery of static converter (UPS) is part and parcel of the uninterrupted power supply system and is covered under Tariff Head 8504 and intra-State supply thereof attracts tax under CST Act as per rate applicable to goods enumerated under Schedule III of Tax-Rate Notification(s), vide serial No. 375, but the situation changes when storage battery or electric accumulator is supplied separately irrespective of whether under a single contract or a separate contract.
\nWe fully agree with the Authority for Advance Ruling's observation that…. “The U<\/p>\n
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