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TMI Blog2023 (3) TMI 1248X X X X Extracts X X X X X X X X Extracts X X X X ..... reference to corresponding provisions in HGST Act, 2017 as well. Sections 97(2) of the CGST Act, 2017 prescribes that Advance Ruling may be sought inter alia on the question of (b) Applicability of a notification issue under the provisions of this Act within the meaning of that term. And proviso with reference to the Section 98(2) of CGST Act, 2017 states that where the questions raised in the application are already pending or decided in any proceedings in the case of the applicant under any provision of this Act, the application may be rejected by the Advance Ruling Authority after providing an opportunity of being heard to the applicant. In this reference, the applicant has undertaken in form ARA-01 that the issue is neither pending no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their internal audit/ check between the competitor and applicant tax invoice due to which applicant faces working capital shortage as the applicant has to pay the differential tax of 6% from their own pocket. STATEMENT CONTAINING THE APPLICANT'S INTERPRETATION OF LAW AND FACTS:- History of amendments in the GST rate wrt the fogging machines:- The original entry of the HSN code 8424 was under S.no- 324 of Schedule III of Notification No. 1/2017-Central Tax (Rate), dated 28th June, 2017 as follows:- "Mechanical appliances (whether or not band-operated) for projecting, dispersing or spraying liquids or powders; spray guns and similar appliances; steam or sand blasting machines and similar jet projecting machines (other than fire extin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Sprayers? Bureau of Indian Standards: IS 3906:1995 REAFFIRMED 2001 "CROP PROTECTION EQUIPMENT HAND OPERATED KNAPSACK SPRAYER. PISTON TYPE-SPECIFICATION" The mechanical sprayers are simple machines either hand operated/ battery operated/ power operated or foot sprayers which with the assistance of spring level disburses the liquid chemical into the nature without performing any chemical reaction or change in the form of liquid. The mechanical sprayers are the most primitive form of sprayers being used for sprinkling pesticides/ chemicals/ plain water etc without changing the form of the liquid. Application of the same are in crop protection, Drip Irrigation etc. The entry no 195(A) under schedule II "Mechanical Sprayer consists only of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nes which uses the thermal energy to convert the chemical liquid inside the machine to be converted into high density chemical based fog being used for disbursing in nature of vector/ mosquito / pest control. These Fog machines are not used to disburse the chemical liquid in its original state as a result, these machines cannot be covered under the mechanical sprayers. Entry no 325 of Schedule III mentions steam or sand blasting machines and other similar jet projecting machines, while no such reference has been made in this context in entry no. 195B of Schedule II. So, fogging Machine can never be categorized as Sprayer as both products are different. Drawing inference from the above, the applicant submits that the fogging machine is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly in B2G model. These fogging machine are used for the purpose of mosquito control, pest, vector control and in health sector. He is manufacturing portable pulse jet type fogging machine operated manually as well as electrically besides double barrell power fogging machine and these are thermal fogging machines which are suitable for vehicle mounting too. During the proceedings, the applicant has apprised that on the said goods they are charging GST rate at 18 % whereas his competitors are charging 12 % on the same product which has resulted into the ambiguity regarding the classification of the goods under the provisions of the GST Act, 2017. So, he has sought an advance ruling on the matter. The basic question of the applicant is that wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... connected to a tractor, to self propelled units similar to tractors with boom mounts. It is a simple machine varying in size and structure, and can be categorized as mechanical sprayers in common parlance. Mechanical appliances:- To understand this term we need to refer to the dictionary meaning of the word Mechanical, Machine and Appliances. Machine:- A machine is a physical system using power to apply forces and control movement to perform an action. Mechanical:- 1. made, performed, or operated by or as if by a machine or machinery, a mechanical process. 2 concerned with machines or machinery. 3 relating to or controlled or operated by physical forces. Appliances:- An implement, an instrument or apparatus designed (or at least used) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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