TMI Blog2022 (4) TMI 1136X X X X Extracts X X X X X X X X Extracts X X X X ..... s the ACIM/PMSM pumps. The built in Maximum power point tracking (MPPT) algorithm optimizes the performance of the pump by utilizing the maximum power from the solar panel and also regulates the voltage and current coming from the solar panel - Thus, it is evident from the facts and the explanatory notes to CTH 8504 that the applicant's product merits classification under Chapter 85 in CTH 8504 and more specifically under CTH 8504 40 90- as Static converters(others); in as much as the Explanatory notes has specifically stated that incorporation of auxiliary circuits to regulate the voltage of the emerging current does not affect their classification in this group. Rate of Tax - HELD THAT:- In the case at hand, it is seen that the product solar pump convertor drive is to be placed between the solar panel and the submersible pump and the power from the solar panels are converted by this device when connected between the panels and pump; maximise the power availability to the Load, i.e., the submersible pumps. Further, the drive provides for remote monitoring support and is compatible and may be upgraded as an USPC [Universal Solar Pump Controller] - In the instant case, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licant has stated that they have developed a Solar Pump Controller for Solar Submersible Pump Application and have classified the controller under HSN code 85044090 and assesses @18% GST. They have stated that when they submitted the quote to the customer, the customer is of the view that it should be charged at 5%. The applicant is seeking clarification on what is the rate for HSN 85 04 40 90 to enable them to start billing the products. 2.2 The applicant has stated that the solar powered devices tax rate is 5%, but there is no clarity on what kind of a solar powered devices are at 5% tax and in some places that raises concern to the buyer. There is no clarity in GST rate index where 8 digit HSN codes are not there for most of the products. They have stated in general solar powered devices tax rate is 5% but there is no clarity on what kind of a solar powered devices are at 5%. They have further stated that tax rate index has to be with 8-digit HSN code and more information should be there so that these issues will not be faced by a designer and manufacturer like them. 3.1 Due to the prevailing PANDEMIC situation and in order not to delay the proceedings, the applicant was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The plastic enclosure was done through injection moulding in Coimbatore itself. The product was designed (Hardware and firmware) inhouse by their R D engineers and the firmware was written by their R D engineers. They have stated that their product is an indigenous product designed and manufactured by them. As this is an electronic product, India doesn't have the facility to manufacture those tiny powerful Integrated circuits which needs to be imported as components / bought through the authorised distributors I dealers / traders in India. They had enclosed Leaflet, user manual and photographs which are as follows: The applicant has also submitted the user guide of Versa Solar Pump Drive, which includes the product overview, installation wiring, Startup operation, Diagnostic troubleshooting details. Contention of their buyers for claiming the rate as 5% - when the customers asked for a 5% GST it was not clear, that was why the applicant has sought for clarification. They wanted to know clearly the Tax rate for HSN Code 85 04 40 90. Method of manufacture, whether indigenous or assembled - The product is indigenous by design and manufacturing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lication 'falling under chapter 84 or 85 is 5% 5. The State Jurisdictional Authority has stated that there are no pending proceedings in the applicant's case. 6.1 We have carefully examined the statement of facts, supporting documents filed by the Applicant along with application, oral submissions made at the time of Virtual hearing, submissions made after hearing and the comments of the Jurisdictional Authority. The applicant has stated to have developed the solar pump controller which has applications in Agricultural pump sets, Domestic use, Solar Pools and Solar-powered fountains. They have sought ruling on following questions: 1. Tax rate for HSN code 85 04 40 90 2. HSN code for solar pump controller The questions raised is on the Classification of the goods and the applicable rate of tax on such goods proposed/being supplied by the applicant. Therefore, the questions are covered under the ambit of this authority under Section 95(a)/97(2) of the CGST Act 2017 and are taken up for consideration on merits. 7.1 The applicant has sought the correct HSN Code (8 digit level) and the applicable Tax rate in respect of the Versa Vane Solar Pump Controlle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t work as the battery should deliver large amount of current. 7.2 It is seen from the above various submissions that the product is a controller which provides the maximum output based on the solar profile. The controller takes the power from Solar Panel and drives the motor of the submersible pumps. The applicant has stated that these products are sold as 'stand-alone' products and will be bought by submersible pump manufacturers, solar panel manufacturers dealers and System Integrators who will integrate Solar Panel, Solar pump controller and Submersible pumps. They are classifying the product under CTH 85044090. 7.3 Prima facie, the classification of the product is taken up. Under GST, as per the Explanation to Notification No. 01/2017-C.T. (Rate) dated 28.06.2017, the Customs Tariff which is based on HSN is made applicable. Therefore, the relevant entries in customs Tariff and the related Explanatory notes (HSN) are examined as under: 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 NOTES : 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... LED LN MODULES OR MADE UP INTO PANELS: LIGHT-EMITTING DIODES (LED). WHETHER OR NOT ASSEMBLED WITH OTHER LIGHT-EMITTING DIODES (LED); MOUNTED PIEZO-ELECTRIC CRYSTALS 8542 ELECTRONIC MIGRATED CIRCUITS Explanatory Notes of HSN relevant to the Heading 8504 are examined as under: (II) ELECTRICAL STATIC CONVERTERS The apparatus of this group are used to convert electrical energy in order to adapt it for further use. They incorporate converting elements (e.g., valves) of different types. They may also incorporate various auxiliary devices (e.g., transformers, induction coils, resistors, command regulators, etc.). Their operation is based on the principle that the converting elements act alternately as conductors and non-conductors. The fact that these apparatus often incorporate auxiliary circuits to regulate the voltage of the, emerging current does not affect their classification in this group, nor does the fact that they are sometimes referred to as voltage of current regulators. 7.4 Thus, as per Chapter Note 2 to Chapter 85, Heading 8501 to 8504 do not apply to goods described in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Para 2.8 and 2.9 states as under: 2.8 SPV Controller - Pump Controller converts the DC voltage of the SPV array into a suitable DC or AC, single or multi-phase power and may also include equipment for MPPT, remote monitoring, and protection devices. 2.9 Maximum Power Point Tracker (MPPT) - MPPT is an algorithm that is included in the pump controller used for extracting maximum available power from SPV array under a given condition. The voltage at which SPV array can produce maximum power is called 'maximum power point' voltage (or peak power voltage). and on construction of such Pump, under Para 3.6 it is stated as follows: 3.6 SPV Controller 3.6.1 Maximum Power Point Tracker (MPPT) shall be included to optimally use the power available from the SPV array and maximize the water discharge. 3.6.2 The SPV Controller must have IP (65) protection or shall be housed in a cabinet having at least IP (65) protection. 3.6.3 Adequate protections shall be provided in the SPV Controller to protect the solar powered pump set against the following: a) Dry running; b) Open circuit; c) Accidental output short circuit; d) Under volt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (3) 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 Sl.No. 201A of Schedule-II of Notification no. 01/2017-C.T.(Rate) dated 28.06.2017, effective from 01.10.2021: S. No. Chapter / Heading Sub-beading/ Tariff item Description of Goods (1) (2) (3) 201A 84, 85 or 94 Following renewable energy devices and parts for their manufacture:- (a) Bio-gas plant: (b) Solar power based devices; (c) Solar power generator: (d) Wind mills, Wind Operated Electricity Generator (WOEG): (e) Waste to energy plants / devices: (f) Solar lantern / solar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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