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2022 (4) TMI 1136 - AAR - GSTClassification of goods - rate of GST - HSN Code - solar pump controller - to be classified under CTH 8504 or not - HELD THAT:- As per Chapter Note 2 to Chapter 85, Heading 8501 to 8504 do not apply to goods described in Headings 8511, 8512, 8540, 8541 or 8542. On perusal of the Headings 8511, 8512, 8540, 8541 and 8542, it is clear that the product in hand do not fall under these Headings and the product being a Convertor, is likely covered under CTH 8504 above, more specifically under CTH 8504 40 90. It is further seen from the Explanatory notes, that the apparatus of this group are those used to convert electrical energy in order to adopt it for further use. In the present case, it is seen form the product overview that the applicant's product is designed and manufactured exclusively for pumps (ACIM/PMSM). Their product is an electronic controller connected between the solar submersible pump which is submerged into the bore well and the solar panels. It takes power from the solar panel which is a DC power and drives the ACIM/PMSM pumps. The built in Maximum power point tracking (MPPT) algorithm optimizes the performance of the pump by utilizing the maximum power from the solar panel and also regulates the voltage and current coming from the solar panel - Thus, it is evident from the facts and the explanatory notes to CTH 8504 that the applicant's product merits classification under Chapter 85 in CTH 8504 and more specifically under CTH 8504 40 90- as Static converters(others); in as much as the Explanatory notes has specifically stated that incorporation of auxiliary circuits to regulate the voltage of the emerging current does not affect their classification in this group. Rate of Tax - HELD THAT:- In the case at hand, it is seen that the product solar pump convertor drive is to be placed between the solar panel and the submersible pump and the power from the solar panels are converted by this device when connected between the panels and pump; maximise the power availability to the Load, i.e., the submersible pumps. Further, the drive provides for remote monitoring support and is compatible and may be upgraded as an USPC [Universal Solar Pump Controller] - In the instant case, the product has MPPT, IP(65) protection, dry run protection and such other features as stipulated in the above specifications, which shows that the product is a stand-alone device and when connected to solar panel converts the solar power into AC, optimizes the power and delivers it to the load, i.e., the submersible pump making such pump as solar power driven pump. The applicable rate of tax on the above said product, when supplied for integration with solar panels and AC submersible pumps, as discussed at para 8 above, as effective from 01.10.2021, is CGST @ 6% as per Si. No. 201 A of Schedule II of Notification 01/2017-CT (Rate) dated 28.06.2017 as amended vide Notification No.8/2021- Central Tax (Rate) dated: 30.09.2021 and SGST @ 6% as per Sl. No 201 A of Schedule-II of Notification No. II (2)/ CTR/532(d-4) (G.O. Ms. No 62, CTR dated: 29.06.2017) as amended vide Notification G.O.Ms. No 121(TN) dated: 04.10.2021 w.e.f. 01.10.2021.
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