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TMI Blog2018 (3) TMI 815X X X X Extracts X X X X X X X X Extracts X X X X ..... on that UPS is also known as ''Inverter'' is not substantiated by any material, and appears to be a personal opinion of the Authority. That apart, the clarification states that the UPS should be treated as Inverter, and taxable at 16% under Entry No.5(i) of Part – E of the First Schedule - This entry cannot made applicable, since it deals with Generators, Generating Sets, Transformers and Non-Electronic Voltage Stabilizers. Therefore, the impugned clarification is wholly flawed. Though the articles are not authenticated, it gives a broad distinction between a UPS and Inverter. The subtle but relevant distinction, which has been shown is that UPS is used in the Desktop Computers, and provides power in the case of power-cut, and the Comput ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t respondent on 07.10.2004, seeking for clarification with regard to the rate of tax fixed for UPS. The first respondent stated that the UPS with built in battery, or attached to batteries is also known as ''Inverter'' and taxable at 16% under Entry No.5(i) of Part-E of the First Schedule to the TNGST Act, and if imported, it is taxable at 20% under Entry No.9 of 11th Schedule. As of now, the challenge to the Clarification has become academic, for more than one reason. 4. Firstly, pursuant to the impugned clarification, no action was initiated by the second respondent/Assessing Officer, with regard to the relevant assessment years 2003-04 and 2004-05. In other words, no reopening proceedings were initiated for all these y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... UPS as a separate product, taxable at 4%. Inverter is a separate product taxable at 4%, under Entry No.14 (iii) in Part D of the First Schedule to the TNGST Act. That apart, voltage stabilizer has been treated as separate product, taxable at 12%, and spike buster as separate product, taxable at 10%. Therefore, the observation made in the impugned clarification that UPS is also known as ''Inverter'' is not substantiated by any material, and appears to be a personal opinion of the Authority. That apart, the clarification states that the UPS should be treated as Inverter, and taxable at 16% under Entry No.5(i) of Part E of the First Schedule. This entry, in my opinion cannot made applicable, since it deals with Generators, Ge ..... X X X X Extracts X X X X X X X X Extracts X X X X
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