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TMI Blog2020 (7) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... i, Chennai 600 100. (hereinafter called the Applicant) is engaged in manufacturing and trading of high-quality Outdoor and Indoor LED Lights with Fittings. They are registered under GST with GSTIN 33AAECI1643Q1ZD. The applicant has sought Advance Ruling on: What is the applicable GST Tariff code and GST rate for the supply of patent-applied LED stem (long bulb) with fittings when both are manufactured in the applicant's factory and supplied as a single unit? Is it a composite supply or a mixed supply? The Applicant has submitted the copy of application in Form GST ARA - 01 and also submitted a copy of Challan evidencing payment of application fees of Rs. 5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. 2.1 The applicant is engaged in the design, manufacture and supply of LED Lights of various applications in wide range of sizes and voltage with Fixtures and fittings where the fixtures and Fittings are made up of Plastic, Aluminium, Steel or a combination thereof. The applicant has stated that they have developed a LED Stem (Long bulb) which has a 360-degree light output and at the same time saves power up to 60% in comparison to the CFL bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d furnishings: Lamps and Lighting Fitting,. Not Elsewhere specified or Included; Illuminated Signs, Illuminated Name-Plates and the like; Prefabricated Buildings". They have stated that the description reads as "Lamps and lighting fittings including searchlights and spotlights and parts thereof, not elsewhere specified or included".; For a Lamp or lighting fittings to be classifiable under Chapter 94, it must not be specified or included elsewhere meaning that that the lamp or lighting fittings must not be covered by any other heading of any other Chapter which is consistent with Note 1(f) to Chapter 94 that excludes "lamps and lighting fittings of Chapter 85;" from its scope.; that the only plausible tariff item is 8539 of Chapter 85 - "Electrical Machinery And Equipment And Parts Thereof; Sound Recorders And Reproducers, Television Image And Sound Recorders And Reproducers, And Parts And Accessories Of Such Articles" of the First Schedule to the Customs Tariff Act, 1975.; that it is clear from the wordings of CTH 8539, that the same refers specifically and exclusively "electric filament or discharge lamps, including sealed beam lamp units and ultraviolet or infra-red lamps; arc l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic heading read with Section and Chapter Notes, then the classification of the product has to be done under the said heading only; in the instant case being Chapter Heading 9405. Also, as per Rule 3(c) of the Rules of Interpretation, when goods cannot be classified by reference to (a) or (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. The applicant has stated that they intend to supply the "LED stem (long bulb) installed lighting fittings" developed by them. As this makes it as a LED lighting product, the applicant is of the view that it will merit classification under the Tariff heading 9405 attracting 12% GST as Chapter 94 is reserved for finished lights with fixtures; while LED stem (long bulb) alone will merit classification under Chapter 85 which deals with Electrical Components like the LED stem (long bulb) in conjunction with electrical machinery and parts thereof. Since they are going to sell the complete 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 sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o launch a new LED light with Fixtures and fittings which could overcome the problems of a conventional LED light which was able to produce only Lesser Light output (only 180-degree) and they have now invented a new LED stem (Long bulb) and after testing it for 6 months has applied for the patent of this product. * To suit the requirements of this invention, they have launched a full range of new garden lights and set up the full manufacturing facility and also invested in own moulds and dies for the manufacture of the LED lights with fixtures or fittings; that they intend to supply the full product to the consumers i.e. the New LED Stem (long bulb) along with its enclosures. As the full product is factory fitted, tested and certified, the consumers are saved from the hassle of buying the low-quality LED lights and fixtures separately. * They are dealing with the below type of products: A.LED Stem (Long bulb) used in the following products: I. LED Garden Lights: a. Optic Series; b. Olivia Series; c. Globes; d. Opera Series; e. Electra Series; f. Elena Series; g. Glenda Series; h. Glasis Series II. LED Outdoor Lights: a. Bulkhead Series; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 9405, 9405 50 31 Hurricane lanterns, Kerosene lamp/pressure lantern, petromax, glass chimney, and parts thereof 226. 9405 LED lights or fixtures including LED lamps 227. 9405 LED (light emitting diode) driver and MCPCB (Metal Core Printed Circuit Board) Schedule III - 9% SI. No. Chapter/ Heading/ Subheading/Tariff item Description of Goods 376B. 8539 Electrical lighting or signaling equipment (excluding articles of heading 8539), windscreen wipers, defrosters and demisters, of a kind used for cycles or motor vehicles 390.* 8539 Electrical Filament or discharge lamps including sealed beam lamp units and ultraviolet or infra-red lamps; arc lamps [other than LED lamps] 438A.* 9405 Lamps and lighting fittings including searchlights and spotlights and parts thereof, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like, having a permanently fixed light source, and parts thereof not elsewhere specified or included [other than kerosene pressure lantern and parts thereof including gas mantles; hurricane lanterns, kerosene lamp, petromax, glass chimney, and parts thereof; LED lights or fixtures including LED lamps; LED (light emi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ordinary course of business as required under Section 8 (a) of the TNGST Act 2017. The principal supply in this case is that of the supply of LED lamp and the fixture supplied is nothing but an ancillary supply. * Also the entry as per Notification No. II (2)/ CTR/532 (d-4)/2017 dated 29.06.2017 specifically mention "fixtures including LED lamps", which renders that both supplied together is naturally bundled and cannot be separated. Hence, it doesn't qualify for mixed supply. 6. The applicant is under the administrative control of Central Tax. The said jurisdictional authority was addressed to report if there are any pending proceedings in the applicant's case on the issues raised by the applicant in the AR application and for comments on the issues raised. The said authority did not furnish any comments. 7.1 We have considered the written and oral submissions of the applicant. We find that the applicant manufactures LED lights with fixtures or fittings and supply the full product to the consumers. They have sought advance ruling on The applicable GST Tariff code and GST rate for the supply of LED stem(long bulb) with fittings when both are manufactured in their f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 and the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory' Notes of the First Schedule shall be applied for the interpretation and classification of goods. 8.2 In the case at hand the competing chapter headings are 8539 and 9405. The relevant chapter heading, section notes are examined as under: CTH 8539: 8539 ELECTRIC FILAMENT OR DISCHARGE LAMPS, INCLUDING SEALED BEAM LAMP UNITS AND ULTRA-VIOLET OR INFRA-RED LAMPS; ARC-LAMPS LIGHT-EMITTING DIODE (LED) LAMPS 85391000 - Sealed beam lamp units - Other filament lamps, excluding ultra-violet or infra-red lamps : 853921 -- Tungsten halogen : --- Other : 85392110 ---- Miniature halogen lamps with fittings 85392120 ---- Other for automobiles 85392190 ---- Other 85392200 -- Other, of a power not exceeding 200 W and for a voltage exceeding 100 V 853929 -- Other : 85392910 --- Of retail sale price not exceeding rupees 20 per bulb 85392920 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c light lamps, whether or not specially designed for particular uses (including flashlight discharge lamps) The heading covers filament lamps, gas or vapour discharge lamps, arc-lamps and light-emitting diode (LED) lamps. .................................... (F) LIGHT-EMITTING DIODE (LED) LAMPS The light from these lamps is produced by one or more light-emitting diodes (LED). These lumps consist of a glass or plastic envelope, one or more light-emitting diodes (LED), circuitry to rectify AC power and to convert voltage to a level useable by the LEDs, and a base (e.g.. screw bayonet or bi-pin type) for fixing in the lamp holder. Certain lamps may also contain a heat sink. These lamps are of various shapes, e.g., spherical (with or without a neck); pear or onion shaped; flame shaped, tubular (straight or curved); special fancy shapes for illuminations, decorations, Christmas trees, etc. From the above it is clear that, Further, CTH 8539 LED lamps which consist of a glass or plastic envelope, LEDs, circular to convert ac-dc AND A BASE. However, such lamps classifiable under CTH 8539 would need a lamp holder which would have the necessary pins / conductors to transmit power fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of fluorescent strip fixtures, a starter or a ballast. This heading covers in particular : (1) lamps and lighting fittings normally used for the illumination of rooms, e g. : hanging lamps; bowl lamps; ceiling lamps; chandeliers; wall lamps; standard lamps; table lamps: bedside lamps; desk lamps; night lamps; water-tight lamps. (2) lamps for exterior lighting, e.g. street lamps, porch and gate lamps; special illumination lamps for public buildings, monuments, parks. (3) Specialised lamps, e g. : darkroom lamps; machine lamps (presented separately): photographic studio lamps; inspection lamps (other than those of heading 85.12); non-flashing beacons for aerodromes: shop window lamps; electric garlands (including those fitted with fancy lamps for carnival or entertainment purposes or for decorating Christmas trees). (4) Lamps and lighting fillings for (the vehicles of Chapter 86. for aircraft or for ships or boats, e.g. headlamps for trains; locomotive and railway rolling stock lanterns; headlamps for aircraft: ships' or boats' lanterns. It should be noted, however, that sealed beam lamp units are classified in heading 85.39 From the above, it is evident that Chap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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