TaxTMI 
TaxTMI 
2018 (10) TMI 1243
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.... it clear 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 such 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, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the "GST Act" 02. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- Brief Description of Activity carried out by Applicant: B.1 M/s Mukand Limited, the Applicant herein, is a Public Limited Company incorporated in India and engaged in the manufacture and supply of special and alloy steels and Overhead Traveling Crane (and parts thereof) solution for handling waste for Industrial Captive. The Applicant manufactures crane lifting capacity up to 500 tons. B.2 The Applicant is a manufacturer of various type of crane for heavy materials handling solutions, providing solutions specifically for Biomass, steel industries, heavy equipment handling, handling car....
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....chanical segregation of inert and hazardous material will be carried out before delivery of processed MSW feedstock to buffer storage pits for boiler feeding. B.9 The MSW is used as a fuel in the boiler for generating steam. In this process, the combustion energy present in the MSW is transformed to steam. The steam is made to expand in the turbine and the heat energy in the steam is converted into kinetic energy. The rotating movement of the rotor is transferred to a generator through a coupling and power is produced. The very intention of the waste to energy project is to use MSW as an input and generate electrical energy as the output. B.10 Indicative process flow of diagram for Power Generation is shown in the Drawing, is shown below: The Figure given below shows schematic diagram of waste to energy power plant: Hereto Annexed & Marked as EXHIBIT - "C" is the copy of indicative process flow of diagram for Power Generation The Overhead Traveling Grab Cranes used in the MSW based power projects are specially designed and tailor made for these projects. C THE PRESENT APPLICATION IS MAINTAINABLE UNDER SECTION 97 OF THE MGST ACT 2017. C.1 The Applicant has filed....
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...."Tariff item", "sub-heading" "heading" and "Chapter" shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975. E.3 Further, Explanation (IV) provides that the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this Notification. E.4 It is submitted that the product proposed to be supplied will undisputedly be covered under tariff heading 84 of the Customs Tariff Act, 1975, which deals with Nuclear Reactors, boilers, machinery, and mechanical appliances; parts thereof. E.5 Schedule I of the Notification No. 1/2017- Integrated Tax (Rate) provides the list of goods that attract IGST at the rate of 5%. Sl. No. 234 of the Notification reads as below: 234. 84 or 85 or 94 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 p....
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....ge will be RCC construction and storages capacity shall be as per system requirement. Suitable capacity of Grab crane will be considered. The storages will be covered with tubular truss with suitable ventilation sheets......... Control and Instrumentation For ease of operation the entire plant has been divided in the following sub plants like: • Steam Turbine Generator STG along with its auxiliaries, vacuum and condensate system etc. (Operation, Control and Monitoring from DCS at CCR). • Steam Generator (SG) along with feeding system etc. (Operation, Control and Monitoring from DCS at CCR). • Auxiliary Electrical System (Operation, Control and Monitoring from DCS al CCR). • Compressed Air system (Control from Local with status monitoring at DCS) • Fire Alarm and detection system (Al Fire House and Repeat Alarm at CCR. • Cooling Water System (Operation, Control and Monitoring from DCS at CCR • The I & C System will be configured to perform the following basic functions [Emphasis supplied) E.15 A pictorial representation of the process is extracted below for ease of understanding: ....
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....c. MSW is heterogeneous, wet and contains material includes food waste, market waste, yard waste, plastic containers, product packaging materials and other miscellaneous solid waste etc. 3. STORAGE OF MUNICIPAL SOLID WASTE (MSW) Because of heterogeneous nature of refuge and large-volume storage requirements flat floor storage pit is constructed in the area of 22mx 67m x 30 m (WxLxH) respectively. MSW comes in trucks to WtE plant and has to be stored in storage pit for drying. Atmosphere inside pit area is hazardous for human activity due to release of tokic gases from degenerating waste in pit. Grab Cranes are exclusively used due to their capabilities in handling heterogeneous materials. 4. HANDLING OF MSW FOR DRYING AND PROCESSSING The MSW unloaded by truck from 7 meters high ramp forms heap near receiving area and needs to be spread in entire MSW storage pit using cranes. The MSW in storage pit is re-shuffled daily for faster drying. Thereafter crane will grab to lift MSW into 2 nos. hoppers at height of 23 meter above ground level. 5. HEIGHT AT WHICH THE CRANES ARE INSTALLED. Area of movement and height hopper requires Cranes to be installed at height....
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....s/devices" attracting 5% levy under SI. No.234 of Schedule I of Notification 1/2017 dated 28/6/2017. In support of their contention, it is stated by them that the product proposed to be supplied is undisputedly covered under tariff heading 84 of Customs Tariff Act, 1975, which deals with Nuclear Reactors, boilers, machinery, and mechanical appliances, parts thereof. Schedule of the Notification No. 1/2017-lntegrated Tax (Rate) provides the list of goods that attract IGST at the rate of 5% and at SI. No. 234 it notifies Chapter headings 84 or 85 and the Description of Goods as "Following renewable energy devices & parts of their manufacture (a) Bio-gas plant (b) Solar power based devices (c) Solar power generation 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 The applicant, M/s. Mukand Limited is a Public Limited Company and are engaged in manufacture and supply of special and alloy steels and various types of cranes for heavy materials handling solutions, handling cargo at ports, etc. including overhead Traveling Cra....
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....goods shall be governed by General Interpretative Rules (GIR) and Rule 3 (a) of GIR states that by application of Rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected, the heading which provides the most specific description shall be preferred to headings providing a more general description. Further, the predominant or principal or primary use which has to be taken into consideration i.e. lifting of the Municipal Solid Waste (MSW) cannot be classified under Renewable energy devices and parts for the manufacture of Waste to energy plants/devices. Therefore the end use is not relevant for classification as much as the basic identity of the goods, tariff entry and market parlance. The definition of manufacture under Section 2 (72) of CGST Act, 2017 is "manufacture" means processing of raw material or inputs in any manner that results in the emergence of a new product having a distinct name, character and use and the term "manufacture" shall be construed accordingly.' As per the product's duty conditions provided by the assesse, the activities carried out by the EOT cranes are Handling of fresh mi....
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....des aftermarket services to its customers. 2. The applicant have received the purchase order from M/S Jindal Urban Waste Management [Guntur] Ltd for design, manufacture, and supply of Waste TO Energy [W t E] plants EOT Grab crane package to JULL's Guntur Waste to Energy Projects for on site Basis as per their PO no 4500015564 dt.20.2.2018 . The customer has placed the order for two cranes having capacity of 15 T EOT crane with 8.0 CUM Smag peiner make Grab and 2 years , O and M spares for 2 *600 TPD Guntur, AP India project. Thus present transaction is a proposed transaction for which applicant is seeking an advance ruling. 3. Applicant submitted that the Electric Overhead Travelling Grab Cranes that are to be supplied by the Applicant to the waste to energy project forms a device /part of the "Waste-to-energy plant". Therefore, it is the understanding of the Applicant that the product "Electric Overhead Travelling Grab Cranes" to be supplied by the Applicant falls under SI. No. 234 of the Notification No. 01/2017-IGST (Rate) dated 28.06.2017 and consequently, is liable to IGST at the rate of 5%. As per serial no. 234 of Schedule I of the Notification No. 01/2017 dated 28.06.....
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....hat the goods must be covered by chapter heading 84 , 85 or 94 and secondly the goods shall satisfy the description "renewable energy devices & parts for their manufacture and the applicant is claiming their goods would be covered under entry ( e) of this Sr. No.234 of this notification which reads as under waste to energy plants /devices.. Now we examine the classification of Electric Overhead Travelling Grab Cranes as per CTH and see whether the goods are covered under chapter heading 84 or 85 of the Central Excise tariff code. Chapter heading 84 is related with Nuclear reactors, boilers, machinery, and mechanical appliances, parts thereof. The relevant Tariff heading with sub heading and Tariff Items are produced herewith. The Tariff heading 8426 covers the items SHIP'S DERRICKS; CRANES INCLUDING CABLE CRANES; MOBILE LIFTING FRAMES, STRADDLE CARRIERS AND WORKS TRUCKS FITTED WITH A CRANE. The details as under thus- 327. 8426 Ship's Derricks ; Cranes Including Cable Cranes; Mobile Lifting Frames, Straddle Carriers And Works Trucks Fitted With A Crane SHIP'S DERRICKS ; CRANES INCLUDING CABLE CRANES; MOBILE LIFTING FRAMES, STRADDLE CARRIERS AND WORKS TRUCKS FITT....
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....s. The dictionary meaning of devices is as - The Devices means - an object or machine that has been invented to fulfill a particular purpose: Noun Plural noun: devices 1. I. a thing made or adapted for a particular purpose, especially a piece of mechanical or electronic equipment. "a measuring device" synony implement, gadget, utensil, tool, appliance, piece of equipment, apparatus, piece of ms: apparatus, piece of hardware, instrument, machine, mechanism, contrivance, contraption, invention, convenience, amenity, aid; More Parts means- a separate piece of something, or a piece that combines with other pieces to form the whole of something The dictionary meaning reveals that EOT Grab Cranes is a device. Further we find from the document submitted by the applicant such as the copy of Purchase order , details of commercial terms and conditions and technical specifications and scope of supply and services in annexure 2 and 3, the details of map, drawing ,designs of Waste to Energy Projects for on site Basis of plant location wise position of cranes , design, drawing and Map of project, that EOT Grab Cranes is an integral device cum part of waste to energy pl....