In Re: M\/s. Nuetech Solar Systems Private Limited
GST
2019 (1) TMI 484 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – 2019 (21) G. S. T. L. 83 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – AAR
Dated:- 31-12-2018
KAR ADRG 33\/2018
GST
SRI. HARISH DHARNIA, AND DR. RAVI PRASAD M.P. MEMBER
\nRepresented by: Sri Vijay Rajesh, Advocate
\nORDER 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
\n1. 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 Rs. 5,000\/- each under the CGST Act and the KGST Act.
\n2. The Applicant, a Private Limited Company, registered under the Goo<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n rmal) Energy and Light (Photo) Energy. Therefore Solar Power Devices are classified as Solar Thermal (eg. Solar Water Heater) devices and Solar Photovoltaic Devices. They further submit that Solar 'Power' does not mean Solar 'Electricity' as the Sun does not give the Electricity directly, but the solar power based devices use solar energy as their input. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n overed under Sl.No.234 of Schedule I of Notification No.1\/2017 Integrated Tax (Rate) dated 28.06.2017 and should be charged at the rate of 5% IGST. They further submit that the ETC tubes are basically devices which carry out the process of heating the cold water and are not merely part of the solar device in the sense of nuts and bolts of the 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. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n the Applicant in their application for advance ruling as well as the submissions made by Sri. Vijay Rajesh, Advocate, the authorized representative, during the personal hearing. We have also considered the issues involved on which advance ruling is sought by the applicant and relevant facts of the issue involved. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n hich basically comprises of the said tubes and an insulated tank. Therefore we are of the Opinion that the instant product merits to be a part of solar water heater systems under the chapter heading 8419. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n downwards. The solar Water heater consists of array of tubes arranged side by side and the entire system works on the basis of the phenomenon of natural Thermosyphon circulation. This process by which the sunlight (solar energy) is converted to heat energy, does not involve generation of electricity. In other words the solar energy is not converted into electric-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'. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" In Re: M\/s. Nuetech Solar Systems Private LimitedGST2019 (1) TMI 484 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – 2019 (21) G. S. T. L. 83 (A. A. R. – GST)AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – AARDated:- 31-12-2018KAR ADRG 33\/2018 GSTSRI. HARISH DHARNIA, AND DR. RAVI PRASAD M.P. MEMBER Represented by: Sri Vijay Rajesh, Advocate ORDER … Continue reading “In Re: M\/s. Nuetech Solar Systems Private 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-16113","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/16113","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=16113"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/16113\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n5. 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.
\n6. 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 Notificati<\/p>\n
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\n7.2 The Applicant, in response to the query raised in the hearing, vide their letter dated 05.12.2018 submitted the following additional submissions.
\na) 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 prin<\/p>\n
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\n8.1 The Applicant, filed 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 ?
\n8.2 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 Not<\/p>\n
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\n8.4 The second part of the question is whether the product of the applicant is entitled for concessional rate under SL.No.234 of the 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.
\nFollowing renewable energy devices & parts for their manufacture
\n (a) Bio-gas plant
\n (b) Solar power based devices
\n (c) Solar power generating system
\n (d) Wind mills, Wind Operated Electricity Generator (WOEG)
\n (e) Waste to energy plants \/ devices
\n (f) Solar lantern\/solar lamp
\n (g) Ocean waves\/tidal waves energy devices\/plants
\n8.5 In view of the above, to claim the concessional rate of 5%, the p<\/p>\n
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\n8.7 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 <\/p>\n
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