No Concessional GST Rate Available on Biomass/Agro Boilers and Agro Waste Fluid Thermic Heaters | HC

Case Details: Isotex Corporation (P.) Ltd. v. Union of India - [2024] 162 taxmann.com 276 (Gujarat)

Judiciary and Counsel Details

• • Bhargav D. Karia & Niral R. Mehta, JJ.
  • Hardik P. Modh for the Petitioner.
  • Ayaan A. Patel for the Respondent.

Facts of the Case

The petitioner was engaged in the business of manufacturing of various industrial boilers. It filed an application for advance ruling to determine rate of tax on boilers which would be manufactured by using non-conventional fuel such as municipal wastes/biomass waste and/or agro waste. It was contended that both biomass/agro fired steam boilers as well as agro waste thermic fluid heaters would be classifiable under the Chapter Heading No.8402 19 90 and eligible for lower rate of 5% or 12% instead of 18%.

AAR Held

The Authority for Advance Ruling denied benefit of concessional rate of GST and Appellate Authority for advance ruling upheld ruling of the Authority for Advance Ruling. It filed writ petition against the order.

The Honorable High Court noted that the petitioner failed to place on record any documentary evidence to show that products would be using only agro waste to avail benefit of Entry No.234/201A of the Notification No. 01/2017. Moreover, the biomass/agro boilers as well as agro waste fluid thermic heaters produced by petitioner did not fall under any category from (a) to (h) of description of goods and petitioner was stated to have been manufacturing boilers/thermal heaters by using non-conventional fuel which would not be qualified for waste to energy plants and devices. Therefore, the Court held that the petition was liable to be dismissed.