TaxTMI 
TaxTMI 
2022 (11) TMI 706
X X X X Extracts X X X X
X X X X Extracts X X X X
....er dated 04.01.2021 passed by the Deputy Commissioner of Customs, confirming the demand of differential duty of Rs. 2,82,524/- raised in the show cause notice dated 17/07/2020 issued under section 28(1) of the Customs Act, 1962, has been set aside and the appeal filed by the Respondent has been allowed. 2. The respondent imported 'fire sprinklers' through a Bill of Entry dated 09.07.2018 claiming and they were parts of fire production system and classified them under Customs Tariff Heading 84249000 on payment of 7.5 per cent towards basic customs duty plus 12 per cent towards Integrated Goods and Service Tax [IGST]. 3. The goods were cleared by the Customs without any objection but during post clearance audit by the Customs Audit Commissi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s; steam or sand blasting machines and similar jet projecting machines [other than sprinklers; drip irrigation systems including laterals; mechanical sprayer; nozzles for drip irrigation equipment or nozzles for sprinklers 6. It needs to be noted that entry at Serial No. 195B falls in Schedule-II for which the rate of integrated tax is 12 per cent, while the entry at Serial No. 325 falls in Schedule-III for which the rate of integrated tax is 18 per cent. 7. The Deputy Commissioner, in the order dated 30.12.2020, held that the goods would fall under entry at Serial No. 325 of Schedule-III of the Notification dated 28.06.2017 and the relevant portion of the order is reproduced below:- " 9. I find that the importer declared the descr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Customs, New Delhi Subject: Clarification regarding GST tax rate for Sprinkler and Drip Irrigation System including laterals Regarding. Representations have been received seeking clarification as regards the scope and coverage of entry No. 195B of the Schedule Il to notification No. 1/2017-Central Tax (Rate), dated 28-6-2017. The entry No. 195B was inserted vide notification No. 6/2018-Central lax (Rate), dated 25th January, 2016 and reads as below: S. No. Chapter Heading/ Sub-heading/ Tariff Item Description of Goods CGST Rate 195B 8424 Sprinklers; drip irrigation system including laterals; 6% 2. Doubts have arisen as in certain cases a view has been taken in the field that this entry woul....
X X X X Extracts X X X X
X X X X Extracts X X X X
....irrigations (SDI), micro-spray or micro-sprinkler irrigation, and mini bubbler irrigation all belong to the category of micro irrigation method. 4. Therefore, the term "sprinklers", in the said entry 195B, covers sprinkler irrigation system. Accordingly sprinkler system consisting of nozzles, lateral and other components would attract 12% ST rate. 5. Difficulty, if any, may be brought to the notice of the Board immediately. Hindi version shall follow." 10. The operative part of the order passed by the Commissioner (Appeals) is reproduced below:- " There is no dispute that the impugned goods are 'sprinklers' and classifiable under CTH 8424. It is also evident that entry 195B mentions "Sprinklers" and entry 345 excludes "Sprink....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cifically. Accordingly, in the present form of entry no. 195B, its applicability to impugned goods cannot be denied. Accordingly, the demand for duty and interest does not sustain." 11. Shri Ravi Chopra, learned authorized representative appearing for the Department placed reliance upon the Circular dated 31.12.2018 to contend that the Commissioner (Appeals) committed an illegality in holding that the goods imported by the respondent would fall under entry at Serial No. 325 of the notification dated 28.06.2017. 12. Shri Viswajeet Saharan, learned counsel appearing for the respondent, however, supported the impugned order. 13. The submissions advanced by the learned authorized representative appearing for the Department and the learned co....