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TMI Blog2022 (11) TMI 706X X X X Extracts X X X X X X X X Extracts X X X X ..... 5B of the notification does not restrict the sprinklers to any category. Reliance placed by the learned authorized representative on the Circular dated 31.12.2018 is misconceived. The said Circular is in connection with the doubts that had arisen in certain cases wherein a view had been taken that entry at Serial No. 195B would not cover laterals or sprinklers and sprinklers irrigation system and it is in this connection that it was stated that the term sprinklers in the said entry 195B would cover sprinkler irrigation system also. It cannot be concluded from the aforesaid Circular that fire sprinklers are excluded from sprinklers. In fact sprinklers and drip irrigation system including laterals are separated by a semi colon. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st clearance audit by the Customs Audit Commissionerate, New Delhi an objection was raised that IGST at the rate of 18 per cent was payable on fire sprinklers in terms of Serial No. 325 of Schedule III to the Notification dated 28.06.2017 and not at the rate of 12 per cent as claimed by the respondent at Serial. No. 195B of Schedule-II of the said notification dated 28.06.2017. 4. Based on the aforesaid objection, a show cause notice dated 17.07.2020 was issued to the respondent proposing a demand of Rs. 2,82,524/- due to incorrect application of IGST rate. The respondent submitted a reply but the Deputy Commissioner confirmed the demand by order dated 04.01.2021. Feeling aggrieved, the respondent filed an appeal before the Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , in the order dated 30.12.2020, held that the goods would fall under entry at Serial No. 325 of Schedule-III of the Notification dated 28.06.2017 and the relevant portion of the order is reproduced below:- 9 . I find that the importer declared the description of the impugned item as Pendent Fire Sprinkler (Part of Fire Protection system) and the same is used to spray water over flames if fire broke out. 9.1 I find that the Sr. No. 325 specifically coves Mechanical Appliances, whether or not hand-operated for projecting, dispersing or spraying liquids or powders; fire extinguishers, whether or not charges; spray guns and similar appliances, whereas Sr. No. 195B covers sprinkles to be used in irrigation system. It is pertinent t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S. No. Chapter Heading/ Sub-heading/ Tariff Item Description of Goods CGST Rate 195B 8424 Sprinklers; drip irrigation system including laterals; 6% 2. Doubts have arisen as in certain cases a view has been taken in the field that this entry would not cover laterals of sprinklers and sprinklers irrigation system , while laterals of drip irrigations are covered by this entry. 3. The matter has been examined. Initially, with effect from 1-7-2017, all goods falling under HS 8424, namely, Mechanical appliances (whether or not hand-operated) for projecting, dispersing or spraying liquids or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. 5. Difficulty, if any, may be brought to the notice of the Board immediately. Hindi version shall follow. 10. The operative part of the order passed by the Commissioner (Appeals) is reproduced below:- There is no dispute that the impugned goods are 'sprinklers' and classifiable under CTH 8424. It is also evident that entry 195B mentions Sprinklers and entry 345 excludes Sprinklers . However, the Adjudicating Authority has taken recourse to Circular 81/55/2018- GST dated 31.12.2018 to conclude that entry 195B covers sprinkler irrigation system and since sprinklers under dispute are used for different purpose, they will fall under entry 345. XXXXXXXXXXXXX Plain reading of this circular reveals that it has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Commissioner (Appeals) committed an illegality in holding that the goods imported by the respondent would fall under entry at Serial No. 325 of the notification dated 28.06.2017. 12. Shri Viswajeet Saharan, learned counsel appearing for the respondent, however, supported the impugned order. 13. The submissions advanced by the learned authorized representative appearing for the Department and the learned counsel appearing for the Respondent have been considered. 14. The description of goods contained at Serial No. 195B of the notification dated 28.06.2017 is sprinklers; drip irrigation system including laterals; mechanical sprayers. It, therefore, covers three goods namely i. Sprinklers; ii. Drip irrigation system including ..... X X X X Extracts X X X X X X X X Extracts X X X X
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