TMI Blog2018 (10) TMI 1243X X X X Extracts X X X X X X X X Extracts X X X X ..... under entry ( e) of this Sr. No.234 of this notification which reads as under waste to energy plants /devices.. Whether the goods are covered under chapter heading 84 or 85 of the Central Excise tariff code? - Held that:- Chapter heading 84 is related with Nuclear reactors, boilers, machinery, and mechanical appliances, parts thereof. The relevant Tariff heading with sub heading and Tariff Items are produced herewith - The Tariff heading 8426 covers the items SHIP’S DERRICKS; CRANES INCLUDING CABLE CRANES; MOBILE LIFTING FRAMES, STRADDLE CARRIERS AND WORKS TRUCKS FITTED WITH A CRANE. The Applicant is claiming to supply the 15 T EOT crane with 8.0 CUM Smag peiner make Grab i.e. the Electric Overhead Travelling Grab Cranes [ 2 quantity] to the waste to energy project. The above cranes are the overhead travelling cranes on fixed support. It is attached to the main plant, at the project site. From the above table we find that the impugned product is classifiable under Tariff heading 84261100 as ‘overhead travelling cranes on fixed support’. Thus applicant satisfies first condition that the goods are covered chapter 84. Whether the impugned goods i.e. Electric Overhead Travell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CGST Act / MGST Act would be mentioned as being under the GST Act 02. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim , could be seen thus- Brief Description of Activity carried out by Applicant: B.1 M/s Mukand Limited, the Applicant herein, is a Public Limited Company incorporated in India and engaged in the manufacture and supply of special and alloy steels and Overhead Traveling Crane (and parts thereof) solution for handling waste for Industrial Captive. The Applicant manufactures crane lifting capacity up to 500 tons. B.2 The Applicant is a manufacturer of various type of crane for heavy materials handling solutions, providing solutions specifically for Biomass, steel industries, heavy equipment handling, handling cargo at ports, Co-generation, Waste-to-energy etc. Apart from manufacturing, the Applicant also provides aftermarket services to its customers. B.3 The Applicant enters into agreements with their customers for design, manufacture, and supply of crane and also for commissioning and installation of cranes at the site of the Customers. B.4 As a part of Swachh Bharat Mission and to comply with Solid Wast ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red to a generator through a coupling and power is produced. The very intention of the waste to energy project is to use MSW as an input and generate electrical energy as the output. B.10 Indicative process flow of diagram for Power Generation is shown in the Drawing, is shown below: The Figure given below shows schematic diagram of waste to energy power plant: Hereto Annexed Marked as EXHIBIT - C is the copy of indicative process flow of diagram for Power Generation The Overhead Traveling Grab Cranes used in the MSW based power projects are specially designed and tailor made for these projects. C THE PRESENT APPLICATION IS MAINTAINABLE UNDER SECTION 97 OF THE MGST ACT 2017. C.1 The Applicant has filed the present application under Section 97(1) of the Maharashtra Goods and Services Act, 2017 ( MGST Act ) read with Rule 104(1) of the Maharashtra Goods and Services Rules, 2017 ( MGST Rules ). C.2 Sections 97(2)(b) of the MGST Act provides that the question in respect of which Advance Ruling is sought shall be inter-alia in respect of the applicability of a notification issued under the provisions of the GST Act. C.3 In the instant application for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, apply to the interpretation of this Notification. E.4 It is submitted that the product proposed to be supplied will undisputedly be covered under tariff heading 84 of the Customs Tariff Act, 1975, which deals with Nuclear Reactors, boilers, machinery, and mechanical appliances; parts thereof. E.5 Schedule I of the Notification No. 1/2017- Integrated Tax (Rate) provides the list of goods that attract IGST at the rate of 5%. Sl. No. 234 of the Notification reads as below: 234. 84 or 85 or 94 Following renewable energy devices parts for their manufacture (a) Bio-gas plant (b) Solar power based devices (c) Solar power generating system (d) Wind mills, Wind Operated Electricity Generator (WOEG) (e) Waste to energy plants / devices (f) Solar lantern/solar lamp (g) Ocean waves/tidal waves energy devices/plants [Emphasis supplied] E.6 As per the entry, supplies of the specific renewable energy devices falling under Chapter heading 84, 85 or 94 parts for their manufacture shall attract IGST at the rate of 5%. The renewable energy devices inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng sub plants like: Steam Turbine Generator STG along with its auxiliaries, vacuum and condensate system etc. (Operation, Control and Monitoring from DCS at CCR). Steam Generator (SG) along with feeding system etc. (Operation, Control and Monitoring from DCS at CCR). Auxiliary Electrical System (Operation, Control and Monitoring from DCS al CCR). Compressed Air system (Control from Local with status monitoring at DCS) Fire Alarm and detection system (Al Fire House and Repeat Alarm at CCR. Cooling Water System (Operation, Control and Monitoring from DCS at CCR The I C System will be configured to perform the following basic functions [Emphasis supplied) E.15 A pictorial representation of the process is extracted below for ease of understanding: POWER GENERATION END PRODUCTS COMBUSTION MATERIAL PROCESS Electrical Overhead Traveling Grab Crane Utes ENVIZONMENTAL CONTROLS E. 16 Schedule I of the Notification No. 01/2017 dated 28.06.2017 in SI. No. 234 includes renewable energy devices including Waste to energy plants/ devices and parts for their manufacture. E.17 From t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MSW comes in trucks to WtE plant and has to be stored in storage pit for drying. Atmosphere inside pit area is hazardous for human activity due to release of tokic gases from degenerating waste in pit. Grab Cranes are exclusively used due to their capabilities in handling heterogeneous materials. 4. HANDLING OF MSW FOR DRYING AND PROCESSSING The MSW unloaded by truck from 7 meters high ramp forms heap near receiving area and needs to be spread in entire MSW storage pit using cranes. The MSW in storage pit is re-shuffled daily for faster drying. Thereafter crane will grab to lift MSW into 2 nos. hoppers at height of 23 meter above ground level. 5. HEIGHT AT WHICH THE CRANES ARE INSTALLED. Area of movement and height hopper requires Cranes to be installed at height above hopper. Accordingly cranes are installed at 31.5 metres above ground level. 6. QUANTITY OF MSW TO BE HANDLLED BY CRANES Handling of heterogeneous nature of MSW from unloading area to storage area for stacking is 89 tons per hour + 105 ton per hour for feeding into shredded hopper +82 ton per hour RDF stacking + 100 ton feeding into boiler hopper. 7. MSW CA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and mechanical appliances, parts thereof. Schedule of the Notification No. 1/2017-lntegrated Tax (Rate) provides the list of goods that attract IGST at the rate of 5% and at SI. No. 234 it notifies Chapter headings 84 or 85 and the Description of Goods as Following renewable energy devices parts of their manufacture (a) Bio-gas plant (b) Solar power based devices (c) Solar power generation system (d) Wind mills, Wind operated electricity generator (WOEG) (e) Waste to energy plants/devices (f) Solar lantern / solar lamp (g) Ocean waves /tidal waves energy devices/ plants The applicant, M/s. Mukand Limited is a Public Limited Company and are engaged in manufacture and supply of special and alloy steels and various types of cranes for heavy materials handling solutions, handling cargo at ports, etc. including overhead Traveling Cranes (and parts thereof) for handling waste for Industrial Captive. Apart from manufacturing, the Applicant also provides aftermarket services to its customers. As per the question on which advance ruling is required by the applicant is Whether the Overhead traveling Crane to be supplied by the applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neral description. Further, the predominant or principal or primary use which has to be taken into consideration i.e. lifting of the Municipal Solid Waste (MSW) cannot be classified under Renewable energy devices and parts for the manufacture of Waste to energy plants/devices. Therefore the end use is not relevant for classification as much as the basic identity of the goods, tariff entry and market parlance. The definition of manufacture under Section 2 (72) of CGST Act, 2017 is manufacture means processing of raw material or inputs in any manner that results in the emergence of a new product having a distinct name, character and use and the term manufacture shall be construed accordingly. As per the product s duty conditions provided by the assesse, the activities carried out by the EOT cranes are Handling of fresh mixed Municipal solid waste (MSW) from heaps formed in pit by tipping vehicles, Moving MSW from unloading area to storage heaps within the pit, transferring the partially dried MSW from storage heaps to hoppers for processing/ segregation, handing processed MSW/ Refuse Derived Fuel (RDF) from heaps formed in pit by tipper conveyer and spreading for storag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The customer has placed the order for two cranes having capacity of 15 T EOT crane with 8.0 CUM Smag peiner make Grab and 2 years , O and M spares for 2 *600 TPD Guntur, AP India project. Thus present transaction is a proposed transaction for which applicant is seeking an advance ruling. 3. Applicant submitted that the Electric Overhead Travelling Grab Cranes that are to be supplied by the Applicant to the waste to energy project forms a device /part of the Waste-to-energy plant . Therefore, it is the understanding of the Applicant that the product Electric Overhead Travelling Grab Cranes to be supplied by the Applicant falls under SI. No. 234 of the Notification No. 01/2017-IGST (Rate) dated 28.06.2017 and consequently, is liable to IGST at the rate of 5%. As per serial no. 234 of Schedule I of the Notification No. 01/2017 dated 28.06.2017 renewable energy devices including Waste to energy plants/ devices and parts for their manufacture attract GST @ 5%. 4. The applicant further submitted that this entry does not specify that the device or parts are required to either produce or convert energy. Therefore, the present IGST Notification not only includes the Electric Ove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this notification which reads as under waste to energy plants /devices.. Now we examine the classification of Electric Overhead Travelling Grab Cranes as per CTH and see whether the goods are covered under chapter heading 84 or 85 of the Central Excise tariff code. Chapter heading 84 is related with Nuclear reactors, boilers, machinery, and mechanical appliances, parts thereof. The relevant Tariff heading with sub heading and Tariff Items are produced herewith. The Tariff heading 8426 covers the items SHIP S DERRICKS; CRANES INCLUDING CABLE CRANES; MOBILE LIFTING FRAMES, STRADDLE CARRIERS AND WORKS TRUCKS FITTED WITH A CRANE. The details as under thus- 327. 8426 Ship s Derricks ; Cranes Including Cable Cranes; Mobile Lifting Frames, Straddle Carriers And Works Trucks Fitted With A Crane SHIP S DERRICKS ; CRANES INCLUDING CABLE CRANES; MOBILE LIFTING FRAMES, STRADDLE CARRIERS AND WORKS TRUCKS FITTED WITH A CRANE 8426 SHIP S DERRICKS ; CRANES INCLUDING CABLE CRANES; MOBILE LIFTING FRAMES, STRADDLE CARRIERS AND WORKS TRUCKS FITTED WITH A CRANE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gy project. The above cranes are the overhead travelling cranes on fixed support. It is attached to the main plant, at the project site. From the above table we find that the impugned product is classifiable under Tariff heading 84261100 as overhead travelling cranes on fixed support . Thus applicant satisfies first condition that the goods are covered chapter 84. Now we turn to the next aspect of the notification to find out whether the impugned goods i.e. Electric Overhead Travelling Grab Cranes is a device or parts for the manufacture of especially waste to energy plants / devices. The Word devices and parts are not defined under the provision of IGST Act or Rules or the notifications issued thereunder. We may refer to the dictionary meaning of the words. The dictionary meaning of devices is as - The Devices means - an object or machine that has been invented to fulfill a particular purpose : Noun Plural noun: devices 1. I. a thing made or adapted for a particular purpose, especially a piece of mechanical or electronic equipment. a measuring device synony implement, gadget, utensil, tool, appliance, piece of equipment, apparatus, piec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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