TaxTMI 
TaxTMI 
2022 (11) TMI 388
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....red 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 to as "CNG Dispenser") which is supplied for use ....
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.... 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 there is no application of external force for causing movement of CNG into the vehicle. 10. In such....
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....me 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/Heading/ Sub-heading/ Tariff Item Description of Goods 117. 8413 Pumps for dispensing fuel or lubricants of the type used in filling statio....
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....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 is set in rotation by the revolving blades of a rotor (impeller), the resulting centrifugal action forcing the liquid outwards to the periphery of an annular casing containing an outlet placed tangentially. The casing is sometimes Jilt....
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....l 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 a particular direction. It is submitted that such conclusion is not only patently against the Explanatory Notes and dictionary meanings supra, the same is patently illogical and unreasonable. If such findings is assumed to be correct in law, a simpliciter steel tube or a pipe also qualifies to be a pump, which is absurd, irrati....
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....ext 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, which are designed to bring this factor to, and maintain it cut, a desired value, stabilized against disturbances, by constantly or periodically measuring its actual value." 28. The Explanatory Notes further explain the scope of Chapter Note 7(a) and Heading 90.32 as infra: "(I) INSTRUMENTS AND APPARATUS FOR AUTOMATICALLY CONTROLLING THE FLOW, LEVEL, PRESSURE OR OTHER VARIABL....
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....on 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, stops the operation of the machine or apparatus controlled. This appliance, generally remote controlled by a mechanical, hydraulic, pneumatic or electric control, is to be classified in its own appropriate heading (pump or compressor: heading 84.13 or 84.14; valve: heading 84.81, etc.). If the automatic control apparatus is combined with the appliance which carries out the orders, the classification of the whole is to be determined under either Interpretive R....
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....iles, 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 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 an automatically controlling or regulating apparatus. The Appellant has also made reference of technical drawings in this regard and contended that the CNG Dispenser does not have a pump or a pumping function. Rather, it has simpliciter inl....
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....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 of the MAAR, the Appellant have contended that the aforesaid observations of the MAAR are contrary to the explanatory notes to the Chapter 84 and the dictionary meanings of the term "pump". It has further been contended by the Appellant that if such interpretation of CNG dispenser as have been derived by the MAAR wherein they have contemplated the impugned product as pump attributing to its ability to cause movement of CNG from the filling station to vehicle tank, i.e., from one place to another, thereby, acting as a pump, i....
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....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 hereunder: Oxford Learners Dictionary: a machine that is used to force liquid, gas or air into or out of something; Merriam-Webster: a device that raises, transfers, delivers, or compresses fluids or that attenuates gases especially by suction or pressure or both. 44. On bare perusal of the aforesaid meaning of the term "pump", it is evident that for any device or apparatus to qualify for the pump, it should transfer or deliver liquid or gases by using pressure or suction or both. On perusal of the descriptions of the impugn....
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....ly 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, form in this way the chambers in which the liquid is displaced. (C) CENTRIFUGAL PUMPS In these pumps, liquid taken in axially is set in rotation by the revolving blades of a rotor (impeller), the resulting centrifugal action forcing the liquid outwards to the periphery of an annular casing containing an outlet placed tangentially The cc/Sing is sometimes Jilted with divergent vanes (diffuser vanes) to transform the kinetic energy of the fluid into high pressure. Centrifugal pumps may be driven by an electric or internal combustion motor or by a turbine. Bec....
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....isturbances 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." 51. The Explanatory Notes further explain the scope of Chapter Note 7(a) and Heading 90.32 as infra: "(I) INSTRUMENTS AND APPARATUS FOR AUTOMATICALLY CONTROLLING THE FLOW, LEVEL, PRESSURE OR OTHER VARIABLES OF LIQUIDS OR GASES, OR FOR AUTOMATICALLY CONTROLLING TEMPERATURE Automatic control apparatus for liquids or gases' and apparatus for automatically controlling temperature form part of complete automatic control systems and consist essentially of the following devices: A device for measuring the variable to be controlled (pressure or level in a tank, temperature in a room, etc.); in some cases, a simple device which is sensitive to changes in the variable (metal or hi-metal rod, cha....