TMI Blog2020 (7) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... ion No. 01/2017-C.T. (Rate) dated 28.06.2017 as amended and 6% SGST as per S.No. 226 of Schedule-II of G.O. (M.S.) No. 62 dated 29.06.2017 as amended. - TN/21/AAR/2020 - - - Dated:- 24-4-2020 - MS. MANASA GANGOTRI KATA, I.R.S., AND THIRU KURINJI SELVAAN V.S., M.SC., (AGRI.), M.B.A., MEMBER, Note : Any Appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated. At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. M/s. lnventaa LED Lights Private Limited No.7A, Leo Industrial Estate, 2nd Floor, Pallikaranai, Chennai 600 100. (hereinafter called the Applicant) is enga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs to save the customers from the hassle of buying the products separately. The fixtures and fittings are also manufactured in-house and the applicant has close to 2500 designs of fittings. Depending upon the usage of the lights, the fittings are designed. The indoor lights are ideal for shops, offices, showrooms, hotels, living room etc., and the outdoor lights are ideal for Garden Pathways, Gate lights, Street Lights, Flood Lights etc. Their products range from Garden Lights from 7 inches to 16 inches, Bollards from 1ft to 3ft. The fittings are made of Polycarbonate, Stainless Steel or Aluminum. The fittings can be installed only with the LED stem (long bulb) of 12 watt or 18 watt manufactured by the applicant. The supply of this new product is being done through a network of dealers in South India and also through a retail showroom in Chennai. 2.3 The applicant on the interpretation of law has stated that the product in question i.e. Light Fittings with LED Stem (Long Bulb) is to be classified under Chapter 94 of the First Schedule to the Customs Tariff Act, 1975 - Furniture; Bedding, Mattresses, Mattress Supports, Cushions And Similar stuffed furnishings: Lamps and Lightin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The luminaires are the final lighting fittings. They would be assembling the LED stem (long bulb) with different types of fittings to suit the end use of its buyers and selling it as a complete unit so that the buyers can use the lights for illuminating the area by just connecting it to an electric power source. These lights are usually permanently fixed to a light source. The complete LED lighting fittings also serve aesthetical demands of the end users. 2.4 The applicant has further stated that the Rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 has been made applicable to the interpretation of Notification No. 1/2017- Central Tax (Rate) dated 28.06.2017 vide Explanation (iv) to the said Notification. As per Rule 1 of the Rules of Interpretation, The titles of Sections, Chapters and sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the following provisios : If the product is classified based on the specific heading read with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry A- GST invoice, Category C- Excise Invoice of Inventaa Mouldings; Category C- GST Invoice of Inventaa LED Lights, Old Brochures and Central Excise Returns. In the written submissions, they had stated that: their company (earlier known as Inventaa LED Innovation Private Limited) was started in the year 2016; they have been into the similar line of business since 2006 by name of Inventaa Mouldings; that Since 2006, they were manufacturing Garden Light enclosures with the use of Polycarbonate and Stainless steel ; that during that time, CFL Bulbs were in use so the customers could purchase the bulb separately from the market and fit into their enclosures and use as Garden Lights. Later in the Year 2015-16, the availability of CFL bulbs reduced in the market due to environmental regulations imposed by Government; that sale of Garden Light enclosures had reduced drastically and to overcome this issue, they started fitting PCB based LED inside the garden lights and due to the reasons like Non-360 Degree Lighting, Failure due to Water, Insects, Less Light output they were not able to fully satisfy the customer requirements. the aim of starting a new company was to launch a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oducts - LED stem Long bulb used in LED Garden Lights, LED Outdoor Lights and LED Bollard Series. They are of the view that the LED stem (long bulb) along with the enclosures are covered under the Tariff Heading 9405 40 90. The GST rates have been prescribed under Notification No. 01/2017- CT (Rate) dated 28.06.2017 as amended from time to time. On perusal of the Notification, they were unable to find the rate prescribed for the tariff item 9405 40 90 . As per Notification No. 12/2017-CT dated 28.06.2017, the Government has prescribed the number of digits of HSN code that has to be mentioned in a tax invoice based on the turnover in the preceding financial year. However, the maximum number of digits prescribed is only 4. Therefore, they have mentioned HSN 9405 in the tax invoice while supplying our products. The various rates prescribed for our products in the Rate Notification is as below Schedule I - 2.5% SI. No. Chapter/ Heading / Sub-heading / Tariff item Description of Goods 258. 9405 50 31 Kerosene pressure lantern 259 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lete unit including fixture and light, they are of the view that it will be regarded as a single product having a separate identity and hence cannot be dragged in to the concept of composite supply or mixed supply. They requested to be heard in person again. 4. The applicant was accorded another opportunity of hearing and heard on 28.08.2019. The Authorized representative appeared for the hearing and reiterated the statement made in additional submission. They submitted a separate catalog for the category' A products for which they seek classification. They stated that the products are LED long stem (bulb) with enclosures in various designs which end with connection pins. They need a holder on the other end available with the customers themselves. These products are classifiable under 9405. The product is a single product not a composite/mixed supply. They are eligible under Sl. No. 226 of Notification 1/2017 as the) are LED light fixtures. They also submitted an advance Ruling of Maharashtra. 5. The state jurisdictional Officer attended the hearing and stated that 9405 is the classification as stated in their written submission. In the written submission dated 16. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for area lighting. The LED stem is sold with the fixtures and fittings manufactured in-house. The fittings are made of Polycarbonate, Stainless Steel or Aluminum and can be installed only with LED stem (long bulb) of 12 watt or 18 watt manufactured by the applicant. The applicant has stated that they intend to supply the full product to the consumers, i.e., the new LED Stem along with its enclosures. The issue to be decided is whether the supply of full product of the LED stem with fixtures or fittings is a single or composite or mixed supply and the applicable GST Tariff code and rate. 7.3 The applicant has stated that LED stem (long bulb) consists of various electronic components, a High graded UV protected polycarbonate body and a base. The components of the LED bulb manufactured by the applicant is as below : a. LED array developed in-house R D for high Light output. b. Special Flexible MCPCB (Metal Core Printed Circuit Board) designed specifically for this product. c. PCB (Plastic Circuit Board) mounted in house with Driver components d. Aluminium Heat Sink Plastic Housings designed for longer life having high strength and better heat conductivity. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 200 W and for a voltage exceeding 100 V 853929 -- Other : 85392910 --- Of retail sale price not exceeding rupees 20 per bulb 85392920 --- Bulb, for torches 85392930 --- Miniature bulbs 85392940 --- Other for automobile lamps 85392990 --- Other - Discharge lamps, other than ultra-violet lamps: 853931 -- Fluorescent, hot cathode : 85393110 --- Compact fluorescent lamps 85393190 --- Other 853932 -- Mercury or sodium vapour lamps; metal halide lamps: 85393210 --- Mercury vapour lamps ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8519.29 - - Other - Discharge lamps, other titan ultra-violet lamps 8539 31 -- Fluorescent, hot cathode : 8539 32 -- Mercury or sodium vapour lamps; metal halide lamps: 8539 39 -- Other - Ultra-violet or infra-red lamps; arc-lamps 8539.41 - - Arc-lamps 8539.49 - - Other 8539.50 - Light Emitting diode (LED) lamps 8539.90 - Parts Electric Light lamps consist of glass or quartz, containers, of various shapes, containing the necessary elements for converting electrical energy into light rays (including infra-red or ultra-violet rays) The heading covers all electric light lam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Wall lamps 94051090 --- Other 940520 - Electric table, desk, bedside or floor-standing lamps : 94052010 --- Table lamps, complete fittings 94052090 --- Other 94053000 - Lighting sets of a kind used for Christmas trees 940540 - Other electric lamps and lighting fittings : 94054010 --- Searchlights and sportlights 94054090 --- Other 940550 - Non-electrical lamps and lighting fittings : 94055010 --- Hurricane lanterns The chapter note states as follows: SECTION XX MISCELLANEOUS MANUFACTURED ARTICLES Furniture; bedding, mattresses, mattress ..... X X X X Extracts X X X X X X X X Extracts X X X X
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