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2022 (11) TMI 388 - AAAR - GSTClassification of goods - CNG dispenser - classifiable under Chapter Heading 84.13 placed at SI. No. 117, Schedule IV of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 or not - whether the impugned product can be construed as “pump” as provided under the relevant entry of the Notification No. 01/2017-C.T.(Rate) dated 28.06.2017? - HELD THAT:- It is observed that the term “pump” is neither defined under the GST law including Acts, rules, or notification issued thereunder, nor under the Customs Tariff Act, 1975, which has been referred to in the notification no. 01/2017-C.T. (Rate) dated 28.06.2017, for the purpose of determining HSN of the goods based on the descriptions contained in the Chapters of the first schedule to the Customs Tariff Act, 1975. It is evident that for any device or apparatus to qualify for the pump, it should transfer or deliver liquid or gases by using pressure or suction or both. On perusal of the descriptions of the impugned product, CNG Dispenser, as submitted by the Appellant, it is noticed that the impugned product does not use pressure or suction to transfer the gas from filling station to fuel tank of the vehicle. It is further observed that it is the difference between the pressures of the gas in the filling station and that in the fuel tank of the vehicle that actuate the flow of gas from the filling station to the fuel tank. That is, the pressure in the filling station is higher than that in the fuel tank. Since it is trite that the gas flows from high pressure to low pressure, accordingly, the gas in the filling station starts flowing into the fuel tank of the vehicle. The pump covered under Heading 84.13 is an instrument that is used for raising and/or displacing volumes of liquid from one place to another, using external forces, which may be in the nature of pressure or suction. Since the impugned product, CNG Dispenser, does not use any external force driven by any electrical or mechanical devices, the same cannot be considered as pump in terms of its meaning provided under the explanatory note - Since it has been established now that the impugned product is not a pump, which is the primary clause of the entry of the chapter heading 84.13, the same will not be classified under Chapter Heading 84.13. Since as per the submissions made by the Appellant regarding components of the impugned device which includes the components like pressure sensor, controller unit, which automatically control and regulate the pressure of CNG being dispensed into the fuel tank, it is observed that the impugned device would merit classification under the Chapter Heading 90.32 placed at SI. No. 422 of the Schedule III to the Notification No. 01/2017-C.T.(Rate) dated 28.06.2017.
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