In re Leoni Cable Solutions (India) Private Limited (GST AAR Maharashtra)
Question:- PV DC Cables manufactured and supplied by Leoni Cable Solutions (India) Pvt Ltd to its Customers (who are into business of manufacturer of Solar Power Generating System or EPC Company setting up a solar power plant) would be classified under:-
a) Entry number 234 of Schedule I of Notification No. 1/2017- Central Tax (Rate) (as amended) dated 28 June 2017 liable to CGST at 2.5%?
OR
b) Entry number 395 of Schedule III of Notification No. 1/2017- Central Tax (Rate) (as amended) dated 28 June 2017 liable to CGST at 9%?
Answer: The PV DC Cables manufactured and supplied by Leoni Cable Solutions (India) Pvt Ltd to its Customers would be classified under Entry number 395 of Schedule III of Notification No. 1/2017- Central Tax (Rate) (as amended) dated 28 June 2017 liable to CGST at 18%.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, MAHARASHTRA
PROCEEDINGS
(under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under Section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act” respectively] by M/s. Leoni Cable Solutions (India) Private Limited, the applicant, seeking an advance ruling in respect of the following questions.-
PV DC Cables manufactured and supplied by Leoni Cable Solutions (India) Pvt Ltd to its Customers (who are into business of manufacturer of Solar Power Generating System or EPC Company setting up a solar power plant) would be classified under:
a) Entry number 234 of Schedule I of Notification No. 1/2017- Central Tax (Rate) (as amended) dated 28 June 2017 liable to CGST at 2.5%?
OR
b) Entry number 395 of Schedule III of Notification No. 1/2017- Central Tax (Rate) (as amended) dated 28 June 2017 liable to CGST at 9%?
At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression ‘GST Act’ would mean CGST Act and MGST Act.
2. FACTS AND CONTENTION – AS PER THE APPLICANT
2.1 M/s Leoni Cable Solutions India Pvt. Ltd. (‘applicant’ or ‘Company’), a subsidiary of LEONI cabel GmbH (formerly, LEONI Kabel Holding GmbH) (‘group Company’), manufactures & supplies solar cables commonly known as photo-voltaic DC cables (‘PVDC cables’) under various brand names.
2.2 The said cables are made from copper conductor with Cross-linked Polyolefin (XLPO) insulation & are used between solar modules & inverters in a photovoltaic system. The most relevant heading as per Customs Tariff Act (CTA)for classification of the said cables is as under:
