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TMI Blog2021 (12) TMI 724X X X X Extracts X X X X X X X X Extracts X X X X ..... that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT 2.1 Parker Hannifin India Private Limited, Applicant having manufacturing premises at Plot EL-26, MIDC, TTC Industrial Area, Mahape Navi Mumbai, has filed the present application which concerns manufacture of "Compressed Natural Gas Dispenser" (hereinafter referred to as "CNG Dispenser"), supplied for use at Compressed Natural Gas ("CNG") dispensing stations for vehicles and automobiles. 2.2 The CNG Dispenser, constantly measures and regulates the mass and pressure of natural gas being transferred to the vehicle so as to ensure that the rated pressure capacity of the CNG tank in the vehicle is not exceeded. Upon the pre-set values being reached, the CNG Dispenser, automatically, by way of a control unit and actuator, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ading is to be preferred for classifying goods. 2.8 Further, the relevant extract of the ITSN Explanatory Notes to Heading 84.13 is reproduced below: "This heading covers most machines and appliances for raisins or otherwise continuously displacing volumes of liquids (including molten metal and wet concrete), whether they are operated by hand or by any kind of power unit, integral or otherwise. The heading also includes delivery pumps equipped with measuring or price-calculating mechanisms such as are used for supplying petrol or oil in garages, and also pumps specialty designed for use with other machines, vehicles, etc. (including petrol, oil or water pumps for internal combustion engines, and pumps for manmade textile fibre spinning machines). The machines of this heading can be subdivided, according to their system of operation, into the following five categories.- (A) Reciprocating Positive Displacement Pumps (B) Rotary Positive Displacement Pumps (C) Centrifugal Pumps (D) Other Pumps Subheading Explanatory Note. Subheadings 8413.11 and 8413.19 These subheadings cover only those pumps, of whatever type, which form, or have been designed to form, a unit wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing this factor to, and maintain it at, a desired value, stabilised against disturbances, by constantly or periodically measuring its actual value; and (I) INSTRUMENTS AND APPARATUS FOR AUTOMATICALLY CONTROLLING THE FLOW, LEVEL, PRESSURE OR OTHER VARIABLES OF LIQUIDS OR GASES, OR FOR AUTOMATICALLY CONTROLLING TEMPERATURE Automatic control apparatus for liquids or gases and apparatus for automatically controlling temperature form part of complete automatic control systems and consist essentially of the following devices:- (A) A device for measuring the variable to be controlled (pressure or level in a tank, temperature in a room, etc.); in some cases, a simple device which is sensitive to changes in the variable (metal or bi metal rod, chamber or bellows containing an expanding liquid, float, etc.) may be used instead of a measuring device. (B) A control device which compares the measured value with the desired value and actuates the device described in (C) below accordingly. (C) A starting, stopping or operating device. Apparatus for automatically controlling liquids or gases or temperature, within the meaning of Note 7 (a) to this Chapter, consists of these three devic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on XVIII provides that Section Notes 3 and 4 to Section XVI apply mutatis mutandis to Chapter 90. Section Note 3 of Section XVI provides that machines having two or more complimentary functions are to be classified basis the principal function. Per the HSN Explanatory Notes thereto, this note is not to be relied upon in case the composite machine is covered by a particular heading. In the present case, even if assuming that the CNG Dispenser is a composite machine, it is specifically covered by Heading 90.32 and hence, deserves to be classified therein itself. Hence, by this yardstick classification under Heading 90.32 is correct. Without prejudice, even if it is assumed that the mass and pressure functions are both principal, then per the HSN Explanatory Notes, Rule 3(c) of the General Rules of Interpretation is to be applied, i.e., the entry that occurs last. Measuring instruments are covered in Heading 90.26 and regulating apparatus in Heading 90.32. By application of Rule 3(c), Heading 90.32 is the appropriate classification. 2.22 Section Note 4 to Section XVI provides that a combination of machines intended to contribute to a clearly defined function are to be classified in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-hearing on 22.10.2021. The Authorized representative of the applicant, Shri. Mayank Jain, learned Advocate and Shri. Dinesh Agarwal, learned C.A were present. The Jurisdictional officer Shri. Subhash Mohite, Deputy Commissioner, LTU-002, Raigad was also present. 4.3 We heard both the sides. 05. OBSERVATIONS AND FINDINGS: 5.1 We have perused the records on file, facts of the case and the submissions made by the applicant as well as the jurisdictional officer. The matter is related to the classification of CNG Dispenser manufactured and supplied by the Applicant; whether it is correctly covered in Sr. No. 422, Schedule III of Notification No. 1/2017-Central Tax (Rate) dated 28 June 2017 as amended and corresponding notification issued under integrated GST and State GST Act. 5.2 M/s Parker Hannifin India Private Limited, the Applicant, manufactures and supplies "Compressed Natural Gas Dispenser" ("CNG Dispenser"), for use at Compressed Natural Gas ("CNG") dispensing stations for vehicles and automobiles. The applicant has submitted that they are currently clearing the CNG Dispensers under Heading 84.13 of the GST Tariff under Sr. No. 117, Schedule IV of Notification No. 1/2017-C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he submissions of the applicant, they are equipped with electronic counters of quantity and price of pumping. 5.9 The product catalog submitted by the applicant of CNG Dispenser clearly indicates that the product is a complete system meant for dispensing CNG and is fitted with hoses, Electronics, tubes & fittings, regulators, valves, nozzles, filters, solenoid and actuators etc. It has been amplified in catalog that "the System is extremely safe, uses low power, dispenses accurately, uses all stainless steel tubes, fittings and connections and has a high resilience to wear and tear" 5.10 We find that Chapter Heading 8413 11 of the GST Tariff covers "Pumps for dispensing fuel or lubricants of the type used in filling stations or garages". The impugned product is designed to dispense fuel, in this case CNG, which are used in filling stations, and acts as a pump which causes CNG, a gas, to move from one place to another. Thus the impugned product can be said to be a type of pump which are used for dispensing fuel and are therefore classifiable under HSN 8413 11 91 of the GST Tariff. 5.11 Section XVI of the GST Tariff covers Chapter Heading 84 and 85 of the GST Tariff. Note 1 (m) of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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