GOVERNMENT OF ANDHRA PRADESH

COMMERCIAL TAXES DEPARTMENT.

PROCEEDINGS OF THE AUTHORITY FOR CLARIFICATION AND ADVANCE RULING

(Under Section 67 of APVAT Act, 20050

Present: Sri T. Yugandhar Reddy, Addl.Commissioner(VAT)

Sri T. Vivek, Jt.Commissioner (VAT)

Sri K. Raghavaiah, Jt. Commissioner(Audit)

****

CCT's Ref.No: PMT/P&L/A.R.Com/509 / 2005.Dated 18-03-2006.

Ref:- CCT's.Ref.No: PMT/P&L/A.R.Com/2005, Dated 13-04-2005.

****

O R D E R:

I. M/s. Astra Microwave Products Ltd, Hyderabad (TIN.28850210656) have filed an application and sought clarification and advance ruling on the following items under Section 67 of APVAT Act, 2005 read with Rule 66(2)(i) of APVAT Rules, 2005 along with the application fee of Rs.1,000/-

II. They sought clarification on the following:

(a) Rate of tax applicable to Microwave Products.

III. They have submitted the following Documents:

(a) List of various microwave products claimed to have been manufactured by the applicant.

(b) Copies of invoices issued under Central Excise Rules, 2002

(c) Copies of form ER-1 issued under Rule 12 of Central Excise Rules , 2002

IV. Mr. V. Bhasker Reddy advocate appeared for hearing and explained the case.

V. The issue has been examined with reference to the provisions of the APVAT Act and Rules and (HSN Codes notified by Government vide G.O.Ms.No:398, Revenue (CT.II) Department Dated 31-03-2005 and G.O.Ms.No:490, Revenue (CT.II) Department Dated 15-04-2005 and) as superceded in G.O. Ms .No 1596, Revenue (CT.II) Department dated 27.8.2005 and in G.O.Ms.No.1615 Revenue (CT.II)Department dated 31.8.2005 and the ruling is given as under:

VI. The applicant claims to be a Public Ltd. Company carrying on business in manufacture and sale of various microwave products which are claimed as classified under HSN Code 8529 of Central Excise Tariff Act. According to the applicant this code consists of various products forming part of transmission and reception apparatus. Components of the said products manufactured by the applicant and used in communication system are also claimed as falling under the category of transmission and reception apparatus. The applicant further states that as per G.O.Ms. No 1615 Revenue (CT.II) Department dated 31.8.2005 various items manufactured by the applicant fall under sub-rules 15, 16,24,25,26 and 29 of Entry 39 of Schedule IV to the APVAT Act, 2005. The applicant, while stating that he manufactures Tele-Communication equipment that can be classified as aerials, antennas and parts that attract HSN Codes 8525, 8527 and 8529.10, submitted copies of invoices and form ER-1 as stated in para – III above.

We have heard the representative and perused the list of products stated to be manufactured by the applicant and copies of documents issued under Central Excise Rules as stated above. The list of items of manufactured by the applicant contains a large number of components which are, according to the applicant, small components of a system. It is therefore not possible to find the appropriate HSN Code for each and every component part of the system. Alternatively we rely on copies of invoices issued by the applicant under Central Excise Rules and Form-ER-I under CEN VAT Credit Rules and find that these documents contained HSN Codes applicable to the products sold by the applicant. In G.O.Ms.No.1615, Revenue (CT-II) Department, dated. 31-08-2005 the Govt. have notified HSN Codes applicable to certain items under Schedule IV to VAT Act, 2005. Under Entry 39 which deals with I.T. products, certain items under sub-sentry 15 are notified attracting HSN Code 8526. Likewise products falling under sub-entry 16 are notified as attracting HSN Code 8527. Items falling under sub-entry 25 are notified as attracting HSN Code 8543. Items falling under sub-entry 26 are notified as attracting HSN code 8544. Items falling under sub-entry 29 are notified as attracting HSN Code 9030. It is therefore, clarified that the applicant shall follow HSN Code under Central Excise Tariff Act applicable to each product manufactured and sold by him and as notified in G.O.Ms.No.1615, Revenue (CT-II) Department, dt.31-08-2005.

NOTE:- An appeal against this proceedings can be filed before the Sales Tax Appellate Tribunal, A.P. Hyderabad within 30 days of this ruling.