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2020 (9) TMI 588 - AAR - GSTClassification of goods - HSN goods - rate of GST - Sprayer pumps (manually operated) and stoves - case of applicant is that the said items are used manually for only agriculture purpose so the rate of tax should be NIL. What sprayer pumps and stoves are? - HELD THAT:- On going through the sample invoices submitted by the applicant, it is found that they are (i) classifying ‘Sprayer pumps’ (manually operated) under Sub-heading 8424 (sample invoice No.440 dated 15.03.2018) and (ii) classifying ‘stoves’ under Sub-heading 7321 (sample invoice No.T/082/18-19 dated 11.06.2018) and paying GST of 12% (6% SGST + 6% CGST) during their supply. Further, when the representative of the applicant was asked during the course of personal hearing about the fuel used for operating the stoves manufactured by the applicant, he stated that wood was used as fuel in the said stoves. Whether the products manufactured by the applicant have been correctly classified and whether the tax paid by them is correct or otherwise? - Notification No.01/2017-Central Tax (Rate) dated 28.06.2017? - HELD THAT:- It is observed that there is no specific entry for ‘Sprayer pumps’. However, looking at the definition of ‘sprayer pumps’ as well as to the uses of the product mentioned in the pamphlets as well as in the submission of the applicant, wherein it is mentioned that it is used as a sprayer on the agricultural field crops, it would fall under Sub-heading 8424 - It is found that the ‘Sprayer pumps’ are specifically covered under Tariff item no.84248100 (agricultural or horticultural) based on their use. It is observed that vide Notification No: 06/2018-Central Tax (Rate) dated 24.01.2018, the word ‘mechanical sprayers’ has been inserted vide Entry No.195B in Schedule-II of Notification No:01/2017-Central Tax(Rate) dated 28.06.2017, whereas Entry No.325 in Schedule-III of the said notification has been amended to the effect that the words ”(other than sprinklers; drip irrigation systems including laterals; mechanical sprayer; nozzles for drip irrigation equipment or nozzles for sprinklers]” have replaced the earlier entry “[other than Nozzles for drip irrigation equipment or nozzles for sprinklers]”. It can therefore be concluded that the product ‘sprayer pumps’ falling under Tariff item No.84248100 would be classified under Entry No.325 of Schedule-III of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 up to 24.01.2018 and the GST applicable during this period would be 18%. However, with effect from 25.01.2018, the said product would be classified under Entry No.195B of Schedule-II of the said notification and the GST applicable would be 12%. Stoves - HELD THAT:- The ‘stoves’ manufactured and supplied by the applicant would be classified under Tariff item No.73218990 - The product ‘stoves’ falling under Tariff item No.73218990 would be classified under Entry at 183 of Schedule-II of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 and the GST applicable would be 12%.
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