Waste-to-energy plant parts classification brings air-cooled condenser under concessional GST rate of 5%.

An air-cooled condenser supplied for a waste-to-energy project was treated as goods under Heading 8404, covering condensers for steam or other vapour power units, rather than as a composite supply of works or services. On the facts stated, the condenser was regarded as an integral part of the waste-to-energy plant and therefore fell within Entry 234 of Schedule I of Notification No. 1/2017-Central Tax (Rate). The operative effect is that the supply qualifies as parts for waste-to-energy plants or devices and attracts the concessional GST rate of 5%.

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Issues: Whether an air-cooled condenser supplied for use in a waste-to-energy project is classifiable as parts for waste-to-energy plants or devices under Entry 234 of Schedule I of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, attracting the concessional GST rate.

Analysis: The goods were examined as a supply of equipment and not as a composite supply involving services. Heading 8404 of the Customs Tariff covers condensers for steam or other vapour power units, and the air-cooled condenser in question was found to fall within that heading. On the facts presented, the equipment was also treated as an integral part of the waste-to-energy plant. Since Entry 234 of Schedule I covers waste-to-energy plants or devices and their parts for manufacture, the supplied condenser was held to fall within that entry.

Conclusion: The air-cooled condenser is covered by Entry 234 of Schedule I of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 and is taxable at the concessional rate of 5% GST.

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