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TMI Blog2021 (1) TMI 498X X X X Extracts X X X X X X X X Extracts X X X X ..... Rate of 2.5% is payable on renewable energy devices and parts for their manufacture as specified therein and falling under Chapter 84 or 85. The relevant extract from the said Notification is given below for ready reference: SCHEDULE I-2.5% S. No. Chapter/Heading/ Subheading/Tariff item Description of goods 234. 84 or 85 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. 4. In view of similar rate of 2.5% tax applicable under State GST Law, total GST payable on above stated goods covered at Sl. No.234, would be 5% i.e. 2.5% CGST & 2.5% SGST. Similarly, in terms of Sl. No.234 of Schedule I to Notification No.1/2017-Integrated Tax (Rate) dated 28.06.2017, the rate of IGST applicable is 5% for the following goods. SCHEDULE I- 5% S. No. Chapter/Heading/ Subheading/ Tariff item Description of goods 234. 84, 85 or 94 Following renewable energy devices & parts for their manufacture: (a) Bio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "waste to energy plants/devices" are classifiable under chapter Heading 8421 of the First Schedule to the Customs Tariff Act, 1975 and are covered by Sr. No.234 of Schedule I of Notification No.1/2017-Central Tax(Rate), dated 28.06.2017 & Notification No.35/2017-S.T.(Rate) dated 30.06.2017, chargeable to CGST @ 2.5% and SGST @ 2.5%." 7. Similar issue was also decided by Karnataka Appellate Authority for Advance Ruling in RE: Triveni Turbine Ltd. [2019 (23) G.S.T.L. 549 (App. A.A.R.-GST)] decided on 03.04.2019 = 2019 (4) TMI 383 - APPELLATE AUTHORITY FOR ADVANCE RULING, KARNATAKA holding that "The turbine generator set to be supplied by the Appellant to the buyer for use in waste-to-energy project is covered under Sl. No. 234 of Schedule I of Notification No. 1/2017-I.T. (Rate) dated 28.06.2017, attracting 5% levy. 8. In view of above backdrops, the applicant has put forward his question on which advance ruling is required, as under: "What is the classification and rate of tax payable in respect of Agro Waste Thermic Fluid Heater or Boiler and parts thereof considering the applicability of Sl. No.234 of Schedule I to Notification No.1/2017-Central Tax (Rate), dated 28.06.2017 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter 84 of the First Schedule to the Customs Tariff Act, 1975. RECORDS OF PERSONAL HEARING: 10. At the time of personal hearing held through Video Conferencing on 17.08.2020, the Authorised Representative of the applicant, Nilesh V Suchak, reiterated the facts as stated in the Application. 10.1 Further, the applicant has also submitted the additional submission dated 14.08.2020 at the time of personal hearing, as below: (i) The applicant manufactures "Waste to Energy Plants/Devices" which are known as Agro Waste Thermic Fluid Heater or Biomass Fired Boilers. This product is classified by them and the said classification is also accepted by the Excise Department without any objection till date since Excise Regime, under Tariff Item 8402 19 90. Tariff Item 8402 covers within its ambit Steam or other Vapour Generating Boilers. The same are manufactured and supplied from applicant's Unit I located at 178/1/C, 181/2/3, GIDC, Naroda, Ahmedabad-382330 and/or Unit II located at D/2/E-76, GIDC Industrial Estate, Ta.: Vagra, Dahej, Bharuch. (ii) Such Agro Waste Thermic Fluid Heater is renewable energy device & parts thereof as it generates energy from waste namely, biomass. Such he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 234(e) of Notification No.1/2017-CT(Rate). (x) Similar issue is also decided by Haryana Advance Ruling Authority in RE: M/s Boldrocchi India Pvt Ltd. [2019 (22) G.S.T.L. 135 (A.A.R.-GST)] vide Ruling dated 18.09.2018 = 2019 (2) TMI 1003 - AUTHORITY FOR ADVANCE RULING, HARYANA holding that "Pollution control device being supplied by the applicant for use in "waste to energy plants/devices" are classifiable under chapter Heading 8421 of the First Schedule to the Customs Tariff Act, 1975 and are covered by Sr. No.234 of Schedule I of Notification No.1/2017-Central Tax (Rate), dated 28.06.2017 & Notification No.35/2017-S.T.(Rate) dated 30.06.2017, chargeable to CGST @ 2.5% and SGST @ 2.5%." (xi) Similar issue was also decided by Karnataka Appellate Authority for Advance Ruling in RE: Triveni Turbine Ltd. [2019 (23) G.S.T.L.549 (App. A.A.R.-GST)] decided on 03.04.2019 = 2019 (4) TMI 383 - APPELLATE AUTHORITY FOR ADVANCE RULING, KARNATAKA holding that "The turbine generator set to be supplied by the Appellant to the buyer for use in waste-to-energy project is covered under Sl. No. 234 of Schedule I of Notification No. 1/2017-I.T. (Rate) dated 28.06.2017, attracting 5% levy." (x ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... draw attention to other advance rulings pertaining to 'waste to energy plants/devices which gives the benefit to devices used in Waste to Energy Plants. Advance Ruling pronounced for M/s Mukund Ltd., reported at 2018 (18) GSTL 327 (A.AR.-GST) = 2018 (10) TMI 1243 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA, the question for consideration was 'whether the Electric Overhead Travelling Grab Crane to be supplied by the applicant to the buyer for use in the waste to energy project is covered under Sl. No. 234 of Schedule I of Notification No.1/2017 dated 28-06-2018-IGST (Rate) as 'Renewable energy devices and parts for the manufacture of waste to energy plants/devices' attracting 5% levy. The Ld. Authority held that EOT Grab Cranes are integral part of the Waste to Energy Plants project for manufacturing and generation of end product of electricity and, hence, cranes were indeed a Part of waste to energy plants. In Advance Ruling pronounced for M/s. Enexio Power Cooling Solutions India Pvt. Ltd. reported in 2018 (19) GSTL 135 (A.A.R.-GST) = 2018 (11) TMI 446 - AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH, the question for consideration before the Authority was 'whether the Air-Cooled Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he applicant, relevant facts & the applicant's interpretation of law. 11.1 At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act. 12. In the instant case, the applicant seeks advance ruling in the matter of classification and rate of GST applicable on the parts (viz. Thermic Fluid Heater or Boiler) being supplied for setting up Waste to Energy Plant. 13. The applicant has submitted that the Agro Waste Thermic Fluid Heater is renewable energy device & parts thereof as it generates energy from waste namely, biomass. Such heaters or boilers are high efficiency Biomass Fired Boilers using waste material for generation of energy. 14. The applicant seeks the HSN classification code for the above explained parts (viz. Thermic Fluid Heater or Boiler) of "Waste to Energy Plant". As per the functioning/working of the impugned product, it is an energy generation device, which merits classification in Chapter heading 8402 of the F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e product has been presented by the applicant as 'Thermic Fluid Heater' in their written submission and during the course of personal hearing a brochure was submitted wherein the product has been categorised as 'Biomass Fired Boiler'. The applicant has not clearly specified the functionality of the product and it becomes very difficult to classify the product merely going by the generic interpretation of the name allotted to the product. The product Thermic Fluid Heater/ Boiler gets classified under Chapter 8402 19 90 in terms of the description of the goods as listed under the respective head of the First Schedule to the Customs Tariff. However, the applicability of Sr. No. 234 of Notification No. 1/2017- Central Tax (Rate) essentially depends on the nature of fuel used for such energy device. 16.1 For the purpose of ascertaining the type of fuel used for the said device, we have referred to the official website of the applicant wherein the products manufactured by them are portrayed. They have mainly categorised their product in four classes viz. Industrial Boiler, Solid Fuel Fired Thermic Fluid Heater, Solid Fuel Fired Boiler and Industrial Boilers which is evident from the fol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icant as available on their official website. Reference to such technical specifications leads to the inescapable inference that the fuel used for generation of energy is not 'waste' but conventional energy generating elements. Resultantly, we find that the rates as specified at Sr. No. 234 of Notification No. 1/2017-Central Tax (Rate) will not be applicable to the product under consideration. 17. Coming to the applicable rate of tax, it is to mention that the said product attracts rate of tax of 9% CGST + 9% SGST as applicable under Sr. No. 310 under Schedule III of Notification No. 1/2017-Central Tax (Rate) read with the corresponding notification under the Gujarat GST Act in case of Intra-State supply. Likewise, the applicable rate of tax will be 18% IGST under Sr. No. 310 under Schedule III of Notification No.1/2017- Integrated Tax (Rate) in case of Inter-State supply. 18. The case laws of M/s Boldrocchi India Pvt. Ltd. [2019 (22) G.S.T.L. 135 (A.A.R.-GST)] = 2019 (2) TMI 1003 - AUTHORITY FOR ADVANCE RULING, HARYANA, M/s Triveni Turbine Ltd. [2019 (23) G.S.T.L.549 (App. A.A.R.-GST)] = 2019 (4) TMI 383 - APPELLATE AUTHORITY FOR ADVANCE RULING, KARNATAKA, M/s Mukund Ltd., repor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4, 85 and 94, say a turbine or a boiler, required in a WTEP, would be used in the WTEP. In this context, it is clarified that GST is to be self-assessed by a taxpayer. Therefore, he needs to satisfy himself with the requisite document from a buyer such as supply contracts/order for WTEP from the concerned authorities before supplying goods claiming concession under said entry 234." In this regard, firstly it is to mention that the said clarification will not apply to the facts of the present case in as much as the heat generating devices of the applicant are conventional devices and do not fall under the category of 'Waste to Energy Plant/Devices'. Secondly, the concession would be available only if used in the initial setting up of renewable energy plants and devices including WTEP. Though, the applicant has claimed the benefit of Sr. No.234 of Notification No.1/2017-Central Tax (Rate), they have not produced any documentary evidence such as supply contracts/order for WTEP from the concerned authorities to show that said Agro Waste Thermic Fluid Heater or Boiler is supplied for use in the initial setting up of renewable energy plants and devices including "waste to energy plants/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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