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TMI Blog2019 (1) TMI 484X X X X Extracts X X X X X X X X Extracts X X X X ..... ant product merits to be a part of solar water heater systems under the chapter heading 8419. Whether the product of the applicant is entitled for concessional rate under SL.No.234 of the Notification supra or not? - Held that:- The solar water heater in question does not appear to be a ‘Solar Power Based Device’. ‘Solar Power based Devices’ would be such a devices which are operated by electricity generated out of solar energy. In such devices first the solar energy.’ gets converted to electric energy and then the electricity so generated runs the appliance / device - In the instant case the product ETC does not generate electricity at any stage and hence can not be construed as either Solar Power based device or part thereof. Therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plicant imports Vacuum Tubes (Evacuated Tube Collector / Vacuum Tube Collector) for manufacture of Solar Water Heater. 3. The Applicant contends that the Solar Evacuated Tube Collector (ETC) is a part of Solar Water Heater and is used specifically for the particular function i.e. heating the Water. They further contend that Solar Power based devices are products powered by sunlight, either directly or through electricity generated by Solar panels, which produce renewable energy for the said devices. Therefore Solar Water Heater is a Renewable Energy Device and the product in question (ETC) is a part of Solar Power based Device. 4. The Applicant submits that Solar Power means Solar Energy, which is incidental in many forms of energy, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te and the said authorized representative appeared for personal hearing proceedings on 18.07.2018, before this authority and submitted that the ETC tubes are imported for manufacture of solar water heaters the tubes are also traded locally. They furnished the copy of Bill of Entry bearing number 6523523 dated 25.05.2018 evidencing the import of said ETC tubes wherein the said tubes were classified under tariff heading 84199910. 7.1 The Applicant contends that ETC tubes are parts of Solar Power based devices and hence should be covered under Sl.No.234 of Schedule I of Notification No.1/2017 Integrated Tax (Rate) dated 28.06.2017 and should be charged at the rate of 5% IGST. They further submit that the ETC tubes are basically devices wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... solar devices and therefore it- is solar power based device hence they are entitled to the benefit of concessional rate of GST @ 5% in terms of Sl.No.234 of Notification No Tax (Rate) dated 28.06.2017, effective from 01.07.2017. FINDINGS DISCUSSION: 8. We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by Sri. Vijay Rajesh, Advocate, the authorized representative, during the personal hearing. We have also considered the issues involved on which advance ruling is sought by the applicant and relevant facts of the issue involved. 8.1 The Applicant, filed the instant application dated 03.07.2018 for advance ruling, seeking clarification as to Whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The product in the instant case is part of the solar water heater system, which basically comprises of the said tubes and an insulated tank. Therefore we are of the Opinion that the instant product merits to be a part of solar water heater systems under the chapter heading 8419. 8.4 The second part of the question is whether the product of the applicant is entitled for concessional rate under SL.No.234 of the Notification supra or not. The notification No.1/2017-Integrated Tax (Rate) dated 28.06.2017, effective from 01.07.2017, under Sl.No. 234 of Schedule l, notifies the Integrated Tax of 5% in respect of the following goods falling under Chapter 84 or 85. Following renewable energy devices parts for their manufacture (a) Bio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... natural Thermosyphon circulation. This process by which the sunlight (solar energy) is converted to heat energy, does not involve generation of electricity. In other words the solar energy is not converted into electric-energy which may heat the water. Here the solar energy is absorbed by the coated surface of the inner tubes, thereby, heating them, which in turn heats the water contained therein. Thus the solar water heater in question does not appear to be a Solar Power Based Device . Now it is pertinent to understand the term Power as used in the term Solar Power Based Device . 8.7 The term Power has not been defined either in the GST Acts or explained in the Chapter / Section Notes of Customs Tariff. Therefore we place relian ..... X X X X Extracts X X X X X X X X Extracts X X X X
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