GST
TRT-2025-
AAR- Maharashtra
Date:-08-06-22
In:-
Issue Favourable to Tax Payer ?:- 0
Order Date- 08 June 2022
Facts:
- The Applicant, M/s Leoni Cable Solutions India Pvt. Ltd., a subsidiary of LEONI kabel GmbH (formerly, LEONI Kabel Holding GmbH) ('group Company'), manufactures & supplies solar cables commonly known as photo-voltaic DC cables ('PVDC cables') under various brand names. The said cables are made from copper conductor with Cross-linked Polyolefin (XLPO) insulation & are used between solar modules & inverters in a photovoltaic system.
- The applicant submits that as per description of Entry number 234 of Schedule I, PVDC cables supplied would be treated as parts for manufacture of SPGS/ EPC Company setting up a solar power plant liable to CGST at 2.5% & SGST at 2.5% as per the GST Laws.
- Applicant further submits that the said solar cables are covered under 'Chapter 85' of CTA & the most relevant tariff entry as mentioned in the Customs Tariff Act (CTA) for said cables is Entry no 85.44.
- The authorities observed that the applicant has not been able to bring clearly out as to how the impugned cables can be considered as parts of the SGPS. In fact, the submissions clearly show that it the impugned cables just carry electricity to the inverters and in our opinion the subject cables cannot be considered as a parts of the SGPS and therefore cannot be covered under Sr. No. 234 mentioned above. Another fact to understand is that the said Sr. No. 234 has been totally omitted from Schedule I of Notification No. 01/2017 dated 28.06.2017, vide Notification No. 08/2021 - CTR dated 30.09.2021.
- The authorities observed that the description of goods in Sr. No. 395 exactly tallies with the Tariff Entry 85.44 which goes to show the intention of the government to classify the impugned goods under Sr. No. 395 of Schedule III of Notification No. 01/2017 CTR dated 28.06.2017 as amended from time to time. Sr. No. 395 is applicable in the instant case only with effect from 14.11.2017.
- Accordingly, the PV DC Cables manufactured and supplied by Leoni Cable Solutions (India) Pvt Ltd to its Customers would be classified under Entry number 395 of Schedule III of Notification No. 1/2017- Central Tax (Rate) (as amended) dated 28 June 2017 liable to CGST at 18%.
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