Page 136 - GSTL_6th August 2020_Vol 39_Part 1

62 GST LAW TIMES [ Vol. 39
LED lamp. The word Lamp in Chapter 8539 was used to include bulbs - the di-
ode along with electrical components like glass covering, drivers, MCPCB and a
screw with wires for connecting to a power source. These are intended to be in-
stalled in a luminaire or a general lighting system. The luminaires are the final
lighting fittings. They would be assembling the LED stem (long bulb) with dif-
ferent types of fittings to suit the end use of its buyers and selling it as a complete
unit so that the buyers can use the lights for illuminating the area by just connect-
ing it to an electric power source. These lights are usually permanently fixed to a
light source. The complete LED lighting fittings also serve aesthetical demands of
the end users.
2.4 The applicant has further stated that the Rules for the interpretation
of the First Schedule to the Customs Tariff Act, 1975 has been made applicable to
the interpretation of Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017
vide Explanation (iv) to the said Notification. As per Rule 1 of the Rules of Inter-
pretation, “The titles of Sections, Chapters and sub-Chapters are provided for ease of
reference only; for legal purposes, classification shall be determined according to the
terms of the headings and any relative Section or Chapter Notes and, provided such head-
ings or Notes do not otherwise require, according to the following provisions :.” If the
product is classified based on the specific heading read with Section and Chapter
Notes, then the classification of the product has to be done under the said head-
ing only; in the instant case being Chapter Heading 9405. Also, as per Rule 3(c) of
the Rules of Interpretation, when goods cannot be classified by reference to (a) or (b),
they shall be classified under the heading which occurs last in numerical order among
those which equally merit consideration. The applicant has stated that they intend to
supply the “LED stem (long bulb) installed lighting fittings” developed by them.
As this makes it as a LED lighting product, the applicant is of the view that it will
merit classification under the Tariff Heading 9405 attracting 12% GST as Chapter
94 is reserved for finished lights with fixtures; while LED stem (long bulb) alone
will merit classification under Chapter 85 which deals with Electrical Compo-
nents like the LED stem (long bulb) in conjunction with electrical machinery and
parts thereof. Since they are going to sell the complete unit including fixture and
light, they are of the view that it will be regarded as a single product having a
separate identity and hence cannot be dragged into the concept of composite
supply or mixed supply and the same will be classifiable under the Chapter
Heading 9405 which is taxable at 12% (CGST + SGST) or IGST.
3.1 The applicant was offered an opportunity to be heard in person on
23-7-2019. They appeared and submitted a copy of the patent application for
their LED long bulb. They submitted a brochure for their products. They stated
that their products are LED Bulbs/Lamps with fittings/casing made of alumi-
num and plastic which are used as gate lights, ceiling lights, etc. They stated that
the bulb is of their own invention with 360 degree as against to the existing 180
degree lights. They stated that the LED bulb cannot be replaced in their products
as the bulbs are not available/sold separately. They supply the full lamp with
fitting with two years warranty. They submitted sale invoices with sales starting
from February, 2019. They stated that before this, they were manufacturing lamp
fittings, housings, etc. They stated that they will submit the invoices, central ex-
cise returns, brochures pertaining to previous supply in two weeks. They re-
quested for another hearing.
3.2 The applicant furnished additional submissions enclosing Brochure
of Category A products, Category A- GST invoice, Category C- Excise Invoice of
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