9911796707
TMI Blog2018 (4) TMI 810X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 2(30) of the CGST/WBGST Act, 2017 (hereinafter referred to as "the GST Act"). An Advance Ruling is admissible on this issue under Section 97 (1) of the GST Act. 2. The Applicant also declares that the issue raised in the application is not pending or decided in any proceedings under any provisions of the GST Act. The concerned officer, in his written response, raises no objection to the admission of the application. The application is, therefore, admitted. 3. For the purpose of taxation under the GST Act classification of the goods involved (UPS and battery) the classification of the goods has been determined in terms of Notification No. 01/2017-Central Tax (Rate) dated 28/06/2017 (1125-FT dated 28/06/2017 of the WBGST Act, 2017; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. Such machines, as well as other machines designed for the purpose of performing two or more complementary or alternative functions, are to be classified as if consisting only of that component or as being that machine, which performs the principal function. 6. Applicability of Note 3 to Section XVI of the Tariff Act (hereinafter referred to as "Note 3") is, however, not absolute, but subject to the context in which it is being applied. In the present context, Note 3 is applicable subject to the definitions of composite supply and its taxability under Section 8(a) of the GST Act. Section 2(30) of the GST Act defines Composite Supply as " a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der Tariff Head 8504. It is an electrical apparatus that provides emergency power to a load when the input power source or mains power fails. A UPS differs from an auxiliary or emergency power system or standby generator in that it provides immediate protection from input power interruptions by supplying energy stored in batteries, supercapacitors or flywheels. The on-battery runtime of most UPS is relatively short but sufficient to start a standby power source or properly shut down the protected equipment. A UPS is typically used to protect hardware such as computers, data centres, telecommunication equipment or other electrical equipment where an unexpected power disruption could cause injuries or data loss. 9. The UPS serves no purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e UPS and the battery are supplied as separate goods, but a single price is charged for the combination of the goods supplied as a single contract. The UPS and the battery, being supplied as separate goods, no longer form an integral part of a composite machine, but it remains to be discussed whether or not under these circumstances they may be considered as "naturally bundled". The applicant insists that as the battery, being supplied as part of an integral contract, remains naturally bundled with UPS - the principal supply. The argument is fallacious. Goods are naturally bundled in a supply contract if the contract is indivisible. For example, a works contract within the meaning of section 2 (119) of the GST Act is a composite supply. Ste ..... X X X X Extracts X X X X X X X X Extracts X X X X
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