TMI Blog2018 (9) TMI 1418X X X X Extracts X X X X X X X X Extracts X X X X ..... -Type), group nipple, reducer bare, socket, Bush, Y(bere), Latch clamps, C clamps, Riser Pipes, Rubber Rings, Tee, Clamps, Foot button, Ripit, Nozzle are all laterals to the sprinklers which when assembled with sprinkler constitutes Sprinkler Irrigation System. In case of drip irrigation system as per entry No.195A and 195 B of the schedule II of Notification No. 1/2017 - CT (Rate) dated 28-6-2017, later amended by Notification No.27/2017 CT- (Rate) dated 22.09.2017 and 6/2018 - CT (Rate) dated 25-1-2018 respectively, covers “Nozzles for drip irrigation equipments” and “drip irrigation system including laterals” and would attract GST (CGST 6% + SGST 6%) - In case of Sprinklers as per entry No. 195A and 195 B of the schedule II of Notification No. 1/2017 - CT (Rate) dated 28-6-2017, later amended by Notification No. 27/2017 CT- (Rate) dated 22.09.2017 and 6/2018 - CT (Rate) dated 25-1-2018 respectively covers only “Nozzles for Sprinkler” and “Sprinklers” which would attract GST 12% (CGST 6% + SGST 6%) - Risers ( which connects sprinkler to laterals) along with all other laterals such as adopter, bend, coupler ,end cap, PCN(C-Type), group nipple, reducer bare, socket, Bush, Y(bere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding upon the requirement of each farmer. These items are supplied as part of a complete sprinkler or drip irrigation system and also as spares separately as and when required by farmer for replacement. 3. All above items are used by the farmers and most of the items do not have an independent use. They are used only as part of Sprinkler or Drip irrigation system for the purpose of irrigation only. 2. Taxability The applicant stated that these items fall under Chapter 84 of the Customs Tariff Act, 1975 under heading 8424 which reads as follows:- MECHANICAL APPLIANCES (WHETHER OR NOT HAND OPERATED) FOR PROJECTING, DISPERSING OR SPRAYING LIQUIDS OR POWDERS; FIRE EXTINGUISHERS, WHETHER OR NOT CHARGED; SPRAY GUNS AND SIMILAR APPLIANCES; STEAM OR SAND BLASTING MACHINES AND SIMILAR JET PROJECTING MACHINES. These items are used in the process of irrigation by means of which water is dispersed or sprayed on to the plants. For heading 8424 there are 3 entries of taxation in notification no 01 / 2017 Central Tax (Rate) dated 28.06.2017, as amended from time to time; all of them are given below:- Schedule II 6% S.No. Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncluded all the lateral parts of these irrigation systems into Schedule Il also, in addition to the Nozzles. 8. The applicant stated that, the word lateral is not defined in the law. However its dictionary meaning is A side part of something or Of, relating to, or situated at or on the side . Examples of uses of this word as per dictionary are as follows:- The plant takes up water through its lateral roots Designers added more storage space, with lateral expansion of the rear compartment In the case of applicant, laterals in relation to irrigation system mean all such devices and equipment which help in the working of the system and without which it may not work. All the products of the applicant are laterals to the sprinkler and drip irrigation. 9. The applicant further submitted that, sprinkler and drip irrigation are 2 different system designed for distinct uses. Sprinkler is in itself a complete system designed for irrigation by use of water pumping. It has not been defined in the law. Dictionary/ internet definitions are as follows:- An Irrigation sprinkler is a device used to irrigate agricultural crops, lawns, landscapes, golf cours ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reiterated that the case may be decided as per submission already made in the application for Advance Ruling. He has sought time to submit statements regarding the explanation of Sprinkler system vis- -vis Sprinkler which was submitted on a later date. Further, he has requested to decide the case at the earliest. 4. The jurisdictional officer in her comments has stated that the Entry relating to Sprinkler does not include Sprinkler irrigation system nor does it include laterals. Hence, the goods in question will attract 12% GST(SGST 6% + CGST 6%). 5. Findings and analysis: Before we set to decide the issues raised in Advance Ruling Application we should analyse and understand the meaning of certain relevant items/commodities relating to entries of the notification in question such as Sprinkler, Sprinkler Irrigation system, Drip Irrigation system and Laterals. a) Sprinkler : As per collins dictionary meaning of sprinkler is a device perforated with small holes that is attached to a garden hose or watering can and used to spray on plants, lawns, etc, with water. It is also defined as a device with a lot of small holes that you put on the end of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rigation system hence to consider or equate Sprinkler as Sprinkler irrigation system will not be correct. c) Drip Irrigation System: Drip irrigation is a type of micro-irrigation system that has the potential to save water and nutrients by allowing water to drip slowly to the roots of plants, either from above the soil surface or buried below the surface. The goal is to place water directly into the root zone and minimize evaporation . Drip irrigation systems distribute water through a network of valves , pipes , tubing , and emitters . Components of Drip Irrigation System: A typical system consists of a source of water supply, pumping unit, main lines, laterals and emitters. Auxiliary components include filters, pressure regulators, valves and equipment for mixing fertilizers etc. 1. Filters: Filters are used to remove undesirable material from the water supply before it enters the distribution system and creates the potential for emitter clogging. 2. Main lines: The main line carries the water from the filtration system to the submain. 3. Submain: The submain distribute the water from main line to the laterals. 4. Laterals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nct uses. Sprinkler is in itself a complete system designed for irrigation by use of water pumping. As discussed above Sprinklers is not in itself a complete irrigation system but constitutes an essential component of a Sprinkler Irrigation System which when assembled with other laterals and accessories makes a complete functional sprinkler irrigation system. The applicant contented that the items supplied by him are necessarily part of the sprinkler and drip irrigation system which is true but unlike the entry relating to drip irrigation which clearly specifies drip irrigation system including laterals this entry confines only to sprinklers and neither includes laterals of sprinkler nor sprinkler irrigation system. Risers, adopter, bend, coupler ,end cap, PCN(C-Type), group nipple, reducer bare, socket, Bush, Y(bere), Latch clamps, C clamps, Riser Pipes, Rubber Rings, Tee, Clamps, Foot button, Ripit, Nozzle are all laterals to the sprinklers which when assembled with sprinkler constitutes Sprinkler Irrigation System. In case of drip irrigation system as per entry No.195A and 195 B of the schedule II of Notification No. 1/2017 - CT (Rate) dated 28-6-2017, later ..... X X X X Extracts X X X X X X X X Extracts X X X X
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