Download 944 16/2016 27.05.2016 Electronic Ballast Praguna Power Systems

1
GOVERNMENT OF TELANGANA
COMMERCIAL TAXES DEPARTMENT
PROCEEDINGS OF THE
AUTHORITY FOR CLARIFICATION AND ADVANCE RULING
Present:
Sri K. Chandrasekhar Reddy, Additional Commissioner (CT)(FAC)
Sri Y. Satyanarayana, Joint Commissioner(CT) – II
Smt. B. Revathi Rohini, Joint Commissioner (CT) (Enft)
A.R.Com/16/2016
Date. 27-06-2015.
CTD Order No. AR 24
CLARIFICATION
O R D E R:
I.
M/s. Praguna Power Systems Pvt. Ltd., Habsiguda, Hyderabad, (TIN No.
36835223649) has filed an application and sought clarification and advance ruling
on the following items under Section 67 of TVAT Act,2005 read with Rule 66 (2)(i) of
TVAT Rules, 2005 along with the application fee Rs.1,000.
II.
They sought clarification on the following:
“Rate of tax on Led driver (HSN Code: 9405.1090), Electronic Ballast (HSN Code:
8504.1090) and Static Convertor (HSN Code: 8504.4090).”
III.
The applicant submitted the following document:
Write up on the issue.
IV.
Mr. P. Noor Ahemed, Manager Operations of the applicant firm, have appeared for
hearing on 30-04-2016 and explained the case.
V.
The issue has been examined with reference to the provisions of the APVAT Act,
2005 and the Rules made thereunder and the G.O.s issued till date; and the
clarification is given as under:The applicant M/s Praguna Power Systems Pvt. Ltd., Habsiguda, Hyderabad,
whose TIN No. 36835223649 are manufacturer of Power Electronic Equipment. They
are making Electronic Ballast, LED Drivers for Lighting Industry and Static Converter
for Electronic Equipment and IT.
They have furnished product write up on Electronic Ballast, LED Drivers and
Static Convertors and they sought clarification on the rate of tax applicable to the
above products. The write up as follows :
(1) Electronic Ballast :- This product is substitute to the conventional tubelight chokes. The electronic ballast has electronic circuit on PCB and used
many electronic components like ICs, capacitors, Diodes and Resistors to
get the regulated output voltage to glow the lamps. This product is used to
glow the lamps. This product is used to glow regular Tube Lights,
miniature tube lights and CFLs. The product has features like low power
consumption and Long life compare to the conventional copper Chokes.
This product comes under HSN code 8504.10.90 of Central Excise Tariff.
(2) LED Drivers :- LEDs (Light Emitting Diode) are the revolution in lighting
filed, which uses very low current and gives more light compare to the
Tube lights and CFLs. 10W of LED lighting is equal to the 50w of Tube
light and CFLs, thus 80% power saving can be achieved. LEDs need
Deputy Commissioner power to glow. LED Driver converts AC 230V
2
(supplied by the power distribution companies) to the required step down
DC voltage by the LED. This LED Driver has Electronic circuit on PCB and
many electronic components like ICs, Capacitors, Diodes & Resistors. The
product comes under HSN code 9405.10.90
(3) Static Convertors :- All electronic equipment like TVs, Computer, Printers
and Media Players works on DC power. Static convertor converts the AC
230V supplied by the power distribution companies to required step down
multiple output DC voltages required by electronic equipment. This
product falls under HSN code 8504.40.90
I.
Electronic Ballast for tubes :- HSN Code 8504-10-90.
The above HSN Code – 8504.10.90 is notified under Entry 39 of the IV
Schedule since the introduction of VAT Act, 2005, the above goods are liable to
tax @ 4% up to 26-08-2005 consequent to the issue of orders by the
Government in G.O.Ms No. 1596, Revenue (CT-II) Department, Dt. 27-08-2005,
wherein the Chapter 8504 has been deleted from the items of I.T. Products the
above goods are liable to tax @ 12.5% w.e.f. 27-08-2005 and later on the rate of
tax from 12.5% to 14.5% has been enhanced w.e.f. 15-01-2010. As on today the
goods are liable to tax @ 14.5% under the Schedule-V of the TVAT Act, 2005.
This has been already clarified by the Advance Ruling Authority of State of A.P.
vide CCT’s Ref No. PMT/P&L/A/A.R.Com/243/2005, Dt. 20-08-2005 in the
case of M/s Sai Sowmya Products, Hyderabad (TIN No. 28410103518)
II.
The LED Drivers (The light emitting diodes) are classified under sub-item 23 of
Item 39 of Schedule IV of the Telangana VAT Act, 2005, under I.T. Products that
is today. Therefore it is liable to taxable @ 5% under Schedule IV of the TVAT
Act, 2005.
III.
Static Convertors:- It is classified under Item of 121 of Schedule IV of the
Telangana VAT Act, 2005. The Item 121 is as under :“Switch made poser supply systems (SMPS), Battery Charges, SMPS based
Integrated power supply systems (IPS), Electrical Transformers (dry type),
Inverters/Converters,
Lt
panels/AMF/Panels/MCC
Panels/
PCC,
Panels/Control and Relay Panels, ACBD/DCDB, Parts of above
Panels/ACDB/DCDB.”
Therefore, it is liable to taxable @ 5% under the Schedule IV of the Telangana
VAT Act, 2005.
Sd/- B. Revathi Rohini
Sd/- Y. Satyanarayana
Sd/- K. Chandrasekhar Reddy
Joint Commissioner(CT)(Enft) Joint Commissioner(CT )-II Addl. Commissioner(CT)(FAC)
NOTE:
An appeal against this clarification lies before the Hon’ble Telangana VAT Appellate
Tribunal: Hyderabad within 30 days from the date of receipt of this clarification.
To
M/s. Praguna Power Systems Pvt. Ltd,
4-65/2, I & II Floor,
Habsiguda, Street No. 8,
Hyderabad – 500 007.
Copy to the Commercial Tax Officer, Tarnaka Circle.
Copy to the Deputy Commissioner (CT), Secunderabad Division.
Copy submitted to Commissioner of Commercial Taxes, T.S. Hyderabad.