2020 (5) TMI 413 - AAR - GST

Permission for withdrawal of Advance Ruling application - classification of goods - determination of tax rates - HDPE SPRINKLER FEMALE COUPLER, HDPE SPRINKLER MALE COUPLER, HDPE SPRINKLER TEE, HDPE SPRINKLER BEND, HDPE SPRINKLER END CAP, HDPE PUMP CONNECTING NIPPLE, HDPE SPRINKLER ADOPTOR, HDPE SPRINKLER REDUCER and HDPE NIPPLE - HELD THAT - The request to withdraw the application is considered. Application dismissed as withdrawn.

Summary

Issues:
1. Classification of goods or services
2. Applicability of a notification under the Act

Classification of Goods or Services:
The applicant, engaged in manufacturing components for sprinkler and drip irrigation systems, sought an advance ruling on the tax rate applicable to their products. The parts, exclusively designed for use in sprinkler systems, were sold to entities in the agricultural sector. The applicant argued that their products should be charged at a 12% GST rate based on relevant notifications and circulars. They highlighted the importance of water conservation technologies and government schemes promoting micro-irrigation. The applicant noted a change in GST rates compared to the VAT regime, where their products were exempted.

Applicability of Notification:
The applicant raised questions regarding the tax rate on parts of sprinkler systems sold separately, their coverage under the HS Code 8424, and the applicable GST rate. However, in a letter dated 6th March 2020, the authorized representative requested to withdraw the application for an advance ruling due to unavoidable circumstances. Consequently, the request for withdrawal was accepted, and the ruling was not issued.

In conclusion, the Authority for Advance Ruling Rajasthan did not provide a formal ruling due to the applicant's withdrawal of the application. The issues of classification of goods or services and the applicability of notifications under the Act were left unresolved as a result of the withdrawal.