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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 ..... ST Act, 2017 & IGST Act, 2017 read with Rule 104 of CGST Rules 2017 & KGST Rules 2017, in form GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act. 2. The Applicant, a Private Limited Company, registered under the Goods and Services Act, 2017 , claims to be an innovative Solar Thermal Energy Company, focused on providing energy solutions by using Concentrated Technology & into the business of Solar Water Heaters (SWH) from last 26 years. The Applicant 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 particula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation No.1/2017 Integrated Tax (Rate) dated 28.06.2017, effective from 01.07.2017. In view of the -above, the applicant sought advance ruling in respect of the following question: Whether Evacuated / Vacuum Tube Collectors (VTC) falls under Chapter 84 of HSN which is covered in SL no 234 of Schedule -I under notification 1/2017 IGST rate dated 28-06-2017? PERSONAL HEARING: / PROCEEDINGS HELD ON 18.07.2018. 7. The Applicant authorized Sri. Vijay Rajesh, Advocate 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the chapter whether used for industrial or domestic purposes. b) In view of the above, solar water heating systems using vacuum tubes made of borosilicate glass with special coating to absorb the solar energy, which are called as Evacuated Tube Collector System (ETC), have to be classified under Chapter 84 heading 19 of Section XVI of Customs Tariff Act 1975. 7.3 The Applicant, therefore, concludes that their product ETC tubes are parts of 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "machine" means any machine, machinery, plant, equipment, apparatus or appliance cited in the headings of Chapter 84 or 85. Chapter 84 heading 19 covers, among others, instantaneous or storage water heaters, non-electric. The solar water heater and system (domestic type) has been classified under heading 8419 19 20 and the parts of instantaneous or Storage Water heaters (domestic type) are covered under heading 8419 90 10. 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 wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inner tube absorbs the solar energy and the tube gets heated. The heat energy of the tube is transferred to the Water thereby heating it. The hot water on upper side becomes lighter and moves upwards into the tank. The cold water, which is heavy, comes downwards. The solar Water heater consists of array of tubes arranged side by side and the entire system works on the basis of the phenomenon of 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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