Pollution control device for waste to energy plants classified under chapter heading 8421

The Authority classified the pollution control device for waste to energy plants under chapter heading 8421, subject to CGST and SGST at 2.5%. The decision was based on the device's specific use in waste to energy projects and its role as a pollution control device.

---

---

Issues: Classification and applicable rate of tax under GST on WTE plant boiler's flue gas cleaning system.

Classification Issue:
The applicant sought clarification on the HSN Code and applicable tax rate for the WTE plant boiler's flue gas cleaning system. The applicant argued that the system falls under Chapter 84 and should be taxed at 5% under Sr. No. 234 of the tax schedule. They provided supporting documents showing exemption of similar equipment from indirect taxes in the past. The applicant emphasized that the purchase order specified the system for a waste to energy project, justifying its classification under HSN Code 84051090 at 5% IGST.

Rate of Tax Issue:
The Authority analyzed the functioning of the waste to energy plant, highlighting the importance of pollution control devices like the flue gas cleaning system. The system was considered a pollution control device under chapter heading 8421 of the Customs Tariff Act, essential for waste to energy plants' operation. However, the ruling clarified that the classification as a part of "waste to energy plants/devices" would depend on its actual use. Consequently, the system was classified under chapter heading 8421 and covered by Sr. No. 234 of the notification, attracting CGST and SGST at 2.5%.

Judgment:
The Authority ruled that the pollution control device supplied by the applicant for use in waste to energy plants/devices is classifiable under chapter heading 8421 and falls under Sr. No. 234 of the notification, subject to CGST at 2.5% and SGST at 2.5%. The decision was made based on the specific use of the device in waste to energy projects, emphasizing the importance of pollution control in such plants. The ruling was ordered accordingly and to be communicated to the applicant.

---