28% GST on Manufacturing and Supplying of CNG Dispenser: AAR [Read Order]

The Maharashtra Authority of Advance Ruling (AAR) held that 28% GST on manufacturing and supplying of CNG Dispenser.

The applicant, Parker Hannifin India Pvt. Ltd. having manufacturing premises at Plot EL 26. MIDC, TTC Industrial Area, Mahape Navi Mumbai, has filed the present application which concerns the manufacture of “Compressed Natural Gas Dispenser”, supplied for use at Compressed Natural Gas (CNG) dispensing stations for vehicles and automobiles.

The CNG Dispenser constantly measures and regulates the mass and pressure of natural gas is transferred to the vehicle so as to ensure that the rated pressure capacity of the CNG tank in the vehicle is not exceeded. Upon the pre-set values being reached the CNG Dispenser, automatically, by way of a control unit and actuator, cuts the supply of CNG to the CNG tank in the vehicle.

To commence refueling of CNG vehicles, the drivers/operators unhook the NGV/NZS nozzle from the CNG Dispenser and hook it up to the receptacle of the CNG tank in the vehicle. Thereafter, the dispensing of CNG would commence upon activation. Throughout the process of dispensing, the CNG Dispenser measures and regulates the pressure.

The applicant has sought the advance ruling on the issue of whether the CNG Dispenser manufactured and supplied by the Applicant is correctly covered in SL. No. 422, Schedule III of Notification No. 1/2017-Central Tax (Rate) dated 28 June 2017 as amended and corresponding notification issued under integrated GST and State GST.

The Coram of Rajiv Magoo and T.R.Ramnani Since we have found that the impugned product is covered under Chapter Heading 8413 11 of the GST Tariff, it is not covered under SL. No. 422, Schedule III of Notification No. 1/2017-Central Tax (Rate) dated 2 June 2017 as amended as the impugned product cannot be classified under Chapter 90.32.

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