TaxTMI 
TaxTMI 
2023 (12) TMI 1270
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....n his application has sought advance ruling on following question- 1. What is applicable tax rate on sale of solar driven submersible pump (water pump)? 2. What is the HSN code for solar driven submersible pump (water pump)? 3. As per declaration given by the applicant in Form ARA-01, the issue raised by the applicant is neither pending nor decided in any proceedings under any of the provisions of the Act, against the applicant. The applicant has submitted that- 1. Astha traders is a partnership firm having three partners Shri Lavish Gupta, Shri Dhananjay Gupta and Shri Anuj Kumar Gupta. 2. They were engaged in the business of trading of all kinds of cements and they now intend to add a new retail segment namely submersible pump primarily used for pumping water for domestic and agricultural purpose. There were two variants of the pump namely electric pump, designed to run on electricity and solar pump designed to run using solar power modules. 3. They intend to start trading of both electric and solar submersible pump and during the course of market research, it was learnt that some dealers were charging GST @ 18% (9% + 9%), wherea....
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....issues on which advance ruling required- (1) Classification of any goods or services or both. (2) Determination of the liability to pay tax on any goods or services or both; 10. We have gone through the submissions made by the applicant and have examined the interpretation submitted by them. At the outset, we find that the issue raised in the application is squarely covered under Section 97(2) (a) of the CGST Act 2017 being a matter related to classification of goods or services or both. We therefore, admit the application for consideration on merits. 11. It is seen from the records, that the applicant intends to start trading in solar driven submersible water pumps. It is necessary to understand the commodity involved before going into the aspect of classification. The applicant was asked to submit the constituents along with specification of their product. They have submitted a flow chart showing the details of the Solar submersible pump and have given the specifications as Solar Panel, Controller and solar submersible pump. They further added that the solar pump only runs on solar heat and not through electricity. They were further asked to provide the de....
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....1.3 A Controller performs variety of functions and is used with both direct current and alternating current motors. A controller includes means to connect the motor to the electrical power supply, and may also include overload protection for the motor, and over-current protection for the motor and wiring. A motor controller may also supervise the motor's field circuit, or detect conditions such as low supply voltage, incorrect polarity or incorrect phase sequence, or high motor temperature. Hence, a controller being an electrical item may be suitable for multiple uses in different applications including in solar power devices but the scope of its use cannot be limited to a solar pump alone. There may be many items, electrical or otherwise, which may be suitable for use in a solar pump but such individual items, in standalone condition, cannot be classified as solar power based devices or solar power generators. Accordingly, a Controller itself, in standalone condition, being an independent electrical item suitable for multiple uses is appropriately classifiable under Chapter Heading 8504 covering 'electrical transformers, static converters and inductors* and the same can no....
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....plicant has sought ruling with respect to the HSN Code and applicable tax rate on the sale of Solar driven submersible water pump. As the supply involves different components and therefore question arises whether the same shall constitute as single supply or together as composite supply or treated as mixed supplies? We observe that the applicant has failed to provide technical specification of the supply. We find that each component is capable of functioning independent of each other. Hence, we find that the supply cannot be treated as single supply. Further, we observed there are clear provisions in the GST Act itself as regards "composite supply" as defined under Section 2(30) and "mixed supply" under Section 2 (74) of CGST Act, 2017 which deal with situations where supply consisting of two or more taxable goods or services or both is involved. It is appropriate to examine the question of present supply with reference to the concept of "composite supply" in order to reach a logical conclusion. We find that as per Section 2(30) of the CGST Act, 2017 '"composite supply" means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods....
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.... After having gone through the definitions of 'composite supply' and 'mixed supply' as discussed above we find that in the instant case the appellant has proposed to supply goods in combination of three products namely Solar Panels, Controller and Submersible Pump. However, none of the supplies constitutes a principal supply or that the supplies are naturally bundled in the ordinary course of business. Further, each of these goods, are capable of being sold individually as standalone and such supply individually does not require simultaneous supply of other goods let alone principal supply of other goods. The instant factual position leads us to the logical conclusion that the supply of each one of the items in question as proposed by the appellant is independent and each one of the items can be supplied separately in the appellant's own case. We, therefore, observe that from the definitions it emerges that a supply, consisting of any possible combination of more than one type of goods which are independent of each other in terms of their supply but which are sold together as a bundle simply because the buyer has ordered purchase of such combination of goods, do....