In re Freeze Tech Innovations (GST AAR Tamil Nadu)
The product ‘PSA Medical Oxygen Generation Plant‘ is Classifiable under CTH 8421 (more specifically under CTH 8421 39 90) and the applicable CGST is 9% as per Sl.No.322 of Schedule III of Notification No. 01/2017-C.T.(Rate) dated 28.06.2017 and the applicable SGST is 9% as per Sl.No.322 of Schedule III of Notification G.0. (Ms) No.62 (No.II(2)/CTR/532(d-4)/2017, TNGST (rate) dated 29-6-2017.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING,TAMIL NADU
Note:Any appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act.
M/s. Freeze Tech Innovations3 E A, Ramakrishna Puram, Coimbatore, 641 001. (hereinafter called the Applicant) is registered under the GST Vide GSTIN 33AADFF3185G1ZN. They have sought Advance Ruling on the following question:
1. We need to know the Tax percentage of PSA Medical Oxygen generation plant.
2. We need to know the HSN Code of PSA Medical Oxygen plant to generate the invoice accordingly.
3. We need to know the tax benefit for the hospital for installing PSA Medical Oxygen plant.
The Applicant has submitted the copy of application in Form GST ARA – 01 and also submitted a copy of Challan evidencing payment of application fees of Rs.5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017.
2. The applicant has stated that they are manufacturing PSA Medical Oxygen generation plant. They are going to deal this product to their customers and they need to know the tax percentage with HSN code for this particular product. They have stated that they need the confirmation for GST percentage for their Medical Oxygen PSA Plant. They are having some confusions of GST percentage for the same. Because, as per the GST notification they came to know the GST portion for PSA Medical Oxygen is 5% 86 6% 86 18% respectively. But still they are not able to find the finalized percentage which will be applicable for this product.
3.1 Due to the prevailing PANDEMIC situation and in order not to delay the proceedings, the willingness of the applicant to participate in a virtual Personal Hearing in Digital media was confirmed and hearing was held on 19.01.2022. The Authorised representative, Shri. R.Ramachandran, Managing Partner appeared for the hearing virtually and stated that they have been selling oxygen Generation Plant at 12% GST. The State Member requested the applicant to provide details mentioned at Sl. No. 15 of their Advance Ruling Application regarding statement of facts. The CGST member requested them to furnish the following documents:
i. Technical write up on the product PSA Medical Oxygen Generation Plant.
ii. This activity being proposed, the details of infrastructure available for manufacture of the plant with photographic evidences, work order and the current stage of the proposal.
iii. Modus of supply of the proposed plant, whether intended to manufacture in-house and sell or procure and supply with installation. In both the cases documents establishing the proposed work.
3.2 The applicant submitted the following additional documents on 28.01.2022 in pursuance of Virtual Personal Hearing held on 19.01.2022.:
> Oxygen PSA Plant Manufacturing Process with Items bought out’ and Flowchart;
> PO raised on them by ABC Techno Labs vide Lr.No. ABC/PSA-MO Plant/2021-22/2119 dated 20.08.2021
> Copy of Tax Invoice, Bill No. 51 dated 27.11.2021 raised by them on ABC Techno Labs India Pvt Ltd
3.3 The applicant was further required by this authority vide Letter Rc.No.675/2021, dated 02.03.2022 to furnish the following details:
1. Details of infrastructure available in their premises.
2. The copies of invoices for the bought out items (inputs for PSA)
3. The various entries corresponds to the tax rates @5%, 6% and 18% stated in the application.
In response to the above letter, the applicants have submitted the following documents for verification of this authority:
1. Descriptions of machinery available in their premises. The machinery available are Lethe, Bending Press Grilling Machine and Welding Machine 3 nos. (Tis.Arc and Mig)
2. Purchase Invoices for the components;
3. Sale Invoice issued by the Applicant for the supply of PSA Oxygen Plant-600 LPM for the value of Rs.45,86,400/- to their customer, namely, M/s ABC Techno Labs India Pvt. Ltd.,
4.1 The State Jurisdictional Authority, Assistant Commissioner (ST), Perur Assessment Circle, who has the administrative Jurisdiction over the applicant vide letter RC. No. 931/2021/A2 dated 18.11.2021 has stated that there are no proceedings pending with respect to Perur circle and has offered the following comments in respect of the questions raised by the applicant:
1. On verification of schedules in order to find the rate of tax for PSA Medical Oxygen generation plant, it has been noted that there was no specific commodity code classification with the rate of tax explicitly available for PSA Medical Oxygen generation plant. However, while going through the notification no. 28/2021 dated: 24.04.2021, it is revealed that in item no.3 PSA Medical Oxygen Plant is mentioned with commodity code 8421 39.
2. When the commodity code 8421 39 was verified it consists of the following commodities with the corresponding rate of tax;
