AI Drafter 
TaxTMI 
TaxTMI 
2022 (11) TMI 706
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....ner of Customs (Appeals) by which the order 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 ....
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....e extinguishers, whether or not charged; spray guns and similar appliances; 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 o....
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....overnment of India Ministry of Finance (Department of Revenue) Central Board of Indirect Taxes & 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 sys....
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....etermined pattern, and applied as a small discharge to each plant or adjacent to it. The traditional drip irrigation using individual emitters, sub-surfaces drip 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:- " Ther....
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....systems would violate the laid down principles of interpretation. If the intention is to grant benefit to sprinkler irrigation system or sprinklers for irrigation systems only, the notification would have mentioned the same specifically. 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. ....