TaxTMI 
TaxTMI 
2022 (11) TMI 388
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...., Navi Mumbai- 400709, ("hereinafter referred to as "Appellant") against the Advance Ruling No. GST-ARA-120/2018-19/B-90 dated 10.11.2021., pronounced by the Maharashtra Authority for Advance Ruling (hereinafter referred to as "MAAR"). BRIEF FACTS OF THE CASE 3. Parker Hannifin India Pvt. Ltd. is a company incorporated under the Companies Act, 1956, and is, inter alia, engaged in the manufacture and trading of various industrial goods such as filters, actuators, nozzles, valves, lubricators, heat shielding, purifiers, hoses and the like which find place in a lot of varied industries. The Appellant was duly registered under the erstwhile Central Excise Act, 1944 and is also registered under Goods and Services Tax (hereinafter referred to as "GST") laws with GST Identification Number 27AAACP6820G1ZJ issued under the Central Goods and Services Tax Act, 2017. Maharashtra Goods and Services Tax Act, 2017 and equally applicable to the Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as the "IGST Act"). 4. So far as relevant to the present appeal, the Appellant is engaged in the manufacture and sale of "Compressed Natural Gas Dispenser" (hereinafter referred t....
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....ed and supplied by the Appellant does not have any pump and neither does it perform any function of pumping. In such background, the Appellant approached the MAAR for determination of the classification of the same. Per the Appellant, as there is no pump, Heading 84.13 (pumps) is inapplicable. Further, since the CNG Dispenser can automatically control and regulate the pressure and/ or value of the CNG dispensed. it will qualify to be classified under Heading 90.32 as automatically controlling or regulating apparatus. Annexed hereto Appeal Memorandum, is a copy of the application preferred by the Appellant along with annexures including catalogues and technical drawings. 9. From a bare perusal of the same, it can be said that the CNG Dispenser does not have a pump or a pumping function. Rather, it has simpliciter inlets and outlets which allows for movement of the CNG from the storage tank to the vehicle via the CNG Dispenser. The reason for movement of the CNG is that the pressure in the tank is low, while that of being dispensed is high. Hence, by principle of simple physics, viz., gas moves from a region of high pressure to low pressure. It is also an undisputed fact that that....
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....the above and assuming that, in the opinion of the MAAAR, the above referred orders passed by the Hon'ble Supreme Court do not apply to the present case, the Appellant humbly requests the MAAAR to condone the delay in filing the accompanying appeal in exercise of powers conferred under the proviso to Section 100 (2) of the CGST Act and MGST Act, for the following reasons: a) The drastic surge in the number of COVID-19 cases in the country due to the spread of the new Omicron variant during late December 2021 up to late-January 2022. Several employees of the Petitioner were diagnosed with COVID-19 during this period, which adversely affected the day-to-day operations of the Petitioner; and b) The bona fide belief of the Petitioner that the above referred orders passed by the Hon'ble Supreme Court applied to the present case, in terms of Articles 141 and 142 of the Constitution of India. GROUNDS OF APPEAL A. The Impugned Advance Ruling has completely ignored the scope of Heading 84.13 and incorrectly interpreted the same 16. The relevant part of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 is reproduced infra: S.No. Chapter/Head....
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....SPLACEMENT PUMPS These use the linear suction or forcing action of a piston or plunger driven within a cylinder, the inlet and outlet being regulated by valves. "Single-acting" pumps utilise the thrust or suction of one end of the piston only: "double-acting" types pump at both ends of the piston thus using both the forward and reverse strokes. In simple "lift" pumps the liquid is merely raised by suction and discharged against atmospheric pressure. In 'force" pumps, the compression stroke is used in addition to the suction stroke, to force the liquid to heights or against pressure. Multi-cylinder pumps are used for increased output. The cylinders may be either in line or in a star shape. ... .... .... (B) ROTARY POSITIVE DISPLACEMENT PUMPS In these also, the intake and discharge of the liquid is effected by suction and compression, in this case produced by cams (lobes) or similar devices, rotated continuously on an axis. These devices make contact, at one or more points with the wall of the body of the pump, and firm in this war the chambers in which the liquid is displaced. (C) CENTRIFUGAL PUMPS In these pumps, liquid taken in axially....
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....n and it is the CNG Dispenser which is causing the CNG to move from one place to another. Thus the impugned product is also functioning as a pump in view of the definitions mentioned above. It can therefore be said that CNG fuel dispensers are used for distribution of Compressed Natural Gas (CNG) which is a fuel and as per the submissions of the applicant, they are equipped with electronic counters of quantity and price of pumping. .... 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. [Emphasis supplied] 23. As can be seen from supra, the Impugned Advance Ruling holds that the CNG Dispensers supplied by the Appellant qualifies to be a pump because it is causing movement of the CNG from one place to another in....
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....ter/Heading/Sub-heading/ Tariff Item Description of Goods 422. 9032 Automatic regulating or controlling instruments and apparatus Tariff Item Description of Goods 9032 Automatic regulating or controlling instruments and apparatus 27. Chapter Note 7 to Chapter 90 lays down the criteria for coverage under Heading 90.32. The text of the same is reproduced for ready reference: "7. Heading 9032 applies only to: (a) instruments and apparatus for automatically controlling the flow, level, pressure or other variables of liquids or gases, or for automatically controlling temperature, whether or not their operation depends on an electrical phenomenon which varies according to the factor to be automatically controlled, which are designed to bring this factor to, and maintain it at, a desired value, stabilized against disturbances. by constantly or periodically measuring its actual value; and (b) automatic regulators of electrical quantities, and instruments or apparatus for automatically controlling non-electrical quantities the operation of which depends on an electrical phenomenon varying according to the Actor to be controlled....
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....ting device: As explained in (B) above, the control unit keeps a check on the pressure and mass and as and when the desired/safe values are reached, supply is stopped by way of actuators and valves. 30. Hence, as evidenced from supra, the pre-requisites of an automatic control system stand satisfied and hence, the device is correctly classifiable under Heading 90.32 and consequently, correctly covered vide SI. No. 422, Schedule III of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017. 31. In addition to supra, it is submitted that the exclusion provided for in the Explanatory Notes to Heading 90.32 is also not applicable in the present case. For ease of reference, the same is reproduced below for ready reference: "Instruments and apparatus for automatically controlling the flow, level, pressure and other variables of liquids or gases or for automatically controlling temperature are connected to an appliance which carries out the orders (pump, compressor, valve, furnace burner, etc.) which restores the variable (e.g. liquid measured in a tank or temperature measured in a room) to the prescribed value, or which, in the case of a safety system for instance, st....
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....r was conducted on 16.09.2022 in virtual mode via Video Conferencing, which was attended by Shri. Mayank Jain and Shri. Shridhar Khedekar on behalf of the Appellant, wherein the Appellant reiterated their earlier submissions made while filing the Appeal under consideration. 36. Shri. Mayank Jain, in the aforesaid hearing, contended that the Appellant is engaged in the manufacture and sale of CNG Dispenser which is supplied for use at CNG dispensing stations for vehicles and automobiles, which are operated by city gas distribution Companies like Mahanagar Gas Ltd, Gujarat Gas Ltd etc. The CNG Dispenser supra is installed at consumer CNG fuel dispensing station's premises. This CNG Dispenser has an inbuilt mechanism to constantly measure and regulate the mass and pressure of natural gas being transferred to the vehicle's fuel tank as per the pre-set values of the devices. The CNG Dispenser, automatically, by way of a control unit and actuator, cuts the supply of CNG to the CNG tank in the vehicle. 37. He further contended that the CNG Dispenser manufactured and supplied by the Appellant does not have any pump and neither does it perform any function of pumping. As per t....
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.... the MAAR has observed as under: "21. The impugned product causes the CNG to flow from the filling station to the CNG Tank of the vehicle. Thus there is a flow of gas in one particular direction and it is the CNG Dispenser which is causing the CNG to move from one place to another. Thus the impugned product is also functioning as a pump in view of the definitions mentioned above. It can therefore be said that CNG fuel dispensers are used for distribution of Compressed Natural Gas (CNG) which is a fuel and as per the submissions of the applicant, they are equipped with electronic counters of quantity and price of pumping. 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. 40. As regards the aforesaid observations o....
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.... independently satisfied and then the question of the kind of fuel would arise. In the present case, the Impugned Advance Ruling has erroneously held that because the CNG flows from one direction to the other, it is performing the function of a pump. 42. On perusal of the aforesaid contention of the Appellant vis-à-vis the impugned advance ruling of the MAAR, the moot issue before us is as to whether the impugned product can be construed as "pump" as provided under the relevant entry of the Notification No. 01/2017-C.T.(Rate) dated 28.06.2017. 43. To decide the aforesaid issue, we would like to understand the meaning of the term "pump". It is observed that the term "pump" is neither defined under the GST law including Acts, rules, or notification issued thereunder, nor under the Customs Tariff Act, 1975, which has been referred to in the notification no. 01/2017-C.T. (Rate) dated 28.06.2017, for the purpose of determining HSN of the goods based on the descriptions contained in the Chapters of the first schedule to the Customs Tariff Act, 1975. Under these circumstances, we would like to refer to the dictionary meaning of the said term "pump", which is being reproduced ....
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....textile fiber spinning machines). The machines of this heading can be subdivided, according to their system of operation, 11710 the following five categories. (A) RECIPROCATING POSITIVE DISPLACEMENT PUMPS These use the linear suction or forcing action of a piston or plunger driven within a cylinder, the inlet and outlet being regulated by valves. "Single-acting" pumps utilize the thrust or suction of one end of the piston only: "double-acting" types pump at both ends of the piston thus using both the forward and reverse strokes. In simple "lift" pumps the liquid is merely raised by suction and discharged against atmospheric pressure. In "force" pumps, the compression stroke is used, in addition to the suction stroke, to force the liquid to heights or against pressure. Multi-cylinder pumps are used for increased output. The cylinders may be either in line or in a star shape. (B) ROTARY POSITIVE DISPLACEMENT PUMPS In these also, the intake and discharge of the liquid is effected by suction and compression, in this case produced by cams (lobes) or similar devices, rotated continuously on an axis. These devices make contact, at one or more points with t....
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.... Goods 422. 9032 Automatic regulating or controlling instruments and apparatus 50. Chapter Note 7 to Chapter 90 lays down the criteria for coverage under Heading 90.32. The text of the same is reproduced for ready reference: "7. Heading 9032 applies only to: (a) instruments and apparatus for automatically controlling the flow, level, pressure or other variables of liquids or gases, or for automatically controlling temperature, whether or 1701 their operation depends on an electrical phenomenon which varies according to the factor to be automatically controlled, which are designed to bring this factor to, and maintain it at, a desired value stabilized against disturbances by constantly or periodically measuring its actual value; and (b) automatic regulators of electrical quantities, and instruments or apparatus for automatically controlling non-electrical quantities the operation of which depends on an electrical phenomenon varying according to the factor to be controlled, which are designed to bring this. factor to, and maintain it at, a desired value, stabilized against disturbances, by constantly or periodically measuring its actual value." ....