ORDER

M/s. Isotex Corporation Pvt. Ltd. (herein after referred to as the “appellant”) filed an application for advance ruling before the Gujarat Authority for Advance Ruling (herein after referred to as the ‘GAAR’) wherein it has been submitted that their products viz. Agro Waste Thermic Fluid Heater or Biomass Fired Boilers are Waste to Energy Plant / Device and would attract total GST of 5% (CGST 2.5%, SGST 2.5% or IGST 5%) as such goods are covered by Sl. No. 234 of Notification No. 1/2017-Central Tax (Rate) and falls under Chapter 84 of the First Schedule to the Customs Tariff Act, 1975 (herein after referred to as the ‘CTA, 1975’). The appellant cited the case laws of M/s Boldrocchi India Pvt. Ltd. [2019(22) GSTL 135 (A.A.R.-GST)], M/s Triveni Turbine Ltd. [2019(23) GSTL.549 (App. A.A.R.-GST)], M/s Mukund Ltd.[2018(18) GSTL 327 (A.A.R.GST)] and M/s Enexio Power Cooling Solutions India Pvt. Ltd. [2018(19) GSTL 135 (A.A.R.-GST)].

2. The appellant raised the following question for advance ruling before the GAAR:-

(i) What is the classification and rate of tax payable in respect of Agro Waste Thermic Fluid Heater or Boiler and parts thereof considering the applicability of Sl. No. 234 of Schedule I to Notification No. 01/2017- Central Tax (Rate) dated 28.06.2017 and corresponding notifications issued under State GST law and IGST Act?

3. The GAAR has examined the issue and has observed that Schedule I of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 and corresponding Notification No. 1/2017-State Tax (Rate) dated 30.06.2017 (the Central Tax (Rate) Notification referred herein after includes the reference to corresponding State Tax (Rate) Notification also] covers the listed renewable energy devices and parts for their manufacture which attract 2.5% CGST including Waste to energy plants / devices (energy should be created from waste i.e. fuel used should inevitable be ‘waste’). The GAAR has observed that the appellant has presented partial facts and remained silent on the aspect of fuel used in the product hence the GAAR referred to the official website of the appellant and observed that the nearest products that matches the description of products under consideration is ‘Fluidized Bed Combustor Thermic Fluid Heater’ and ‘Biomass Steam Boiler’. The fuel used in above mentioned products has been specified as Imported coal, rice husk, lignite etc. and Coal, wood, briquette etc. respectively. It has been observed that the concessional Notification No. 1/2017-Central Tax (Rate) specifically applies only to the goods falling under chapters 84, 85 and 94 of the Tariff and the products under consideration attracts rate of tax of 9% CGST+ 9% SGST as applicable under Sr. No. 310 under Schedule III of Notification No. 1/2017- Central Tax (Rate) and in case of Intra –State supply, the applicable rate of tax will be 18% IGST under corresponding notification of Integrated Tax. In view of the foregoing, the GAAR passed the following ruling.

(i) The Agro Waste Thermic Fluid Heaters or Boilers are classifiable under heading 8402 19 19 of the First Schedule to the Customs Tariff Act, 1975 and attract 9% CGST + 9% SGST in terms of Sr. No. 310 of Schedule III of Notification No. 01/2017- Central Tax (Rate) & the corresponding Notification issued under GGST Act, 2017 or 18% IGST in terms of Sr. No. 310 of Schedule III of Notification No. 01/2017- Integrated Tax (Rate), as applicable.

4.1 Aggrieved by the aforesaid ruling, the appellant has filed the present appeal, along with request for granting personal hearing and with prayer for stay of advance ruling.

4.2 The appellant has inter-alia submitted that it is involved in manufacturing of ‘Biomass Fired (Steam) Boilers’ and ‘Agro Waste Thermic Fluid Heaters’ falling under Tariff Item 8402 19 90 of the CTA, 1975’, which are used for providing renewable energy solutions, specifically by employing Biomass / Agro Waste and energy is generated by fueling waste into the boilers. The appellant has submitted that the ‘Biomass Fired (Steam) Boilers’ stand covered under clause (e) of Entry No. 234 of Schedule I of Notification No. 1/2017-Central Tax (Rate) and has referred to Circular No. 80/54/2018-GST dated 31.12.2018 issued by the Central Board of Indirect Taxes & Customs (CBIC). It is the submission of the appellant that the GAAR has failed to understand the submission of the appellant inasmuch as the GAAR has mentioned in the Advance Ruling that the applicant has sought an advance ruling in the ‘matter of classification and rate of GST applicable on the parts being supplied for setting up Waste to Energy Plant’, which is not the case / matter under the application for advance ruling; that the appellant had approached the GAAR for the product manufactured i.e. Biomass Fired (Steam) Boilers, Agro Waste Thermic Fluid Heater. The appellant has further submitted that there is no dispute in classification of Biomass Fired (Steam) Boilers, Agro Waste Thermic Fluid Heater, which gets classified under Tariff Item 8402 19 90 of the CTA, 1975. It has also been submitted that the GAAR has referred Company’s website and from there, they have taken into consideration variety of product range of boilers and heaters with numerous screenshots mentioning in ruling, except the product Biomass Fired (Steam) Boilers and Agro Waste Thermic Fluid Heater, which are actually the product put before the learned authority for answering.

4.3 The appellant has submitted that the GAAR has erred by stating that fuel used in the boiler are conventional elements like Coal, Lignite etc., however that is not the case in the question raised by the appellant in the application for advance ruling.

4.4 It has been submitted by the appellant that in order to be placed under clause (e) of Entry No. 234 of Schedule I of Notification No. 1/2017-Central Tax (Rate), it is inevitable to fulfill the functionality test of ‘Waste to Energy Plant’. The appellant has further submitted that it manufactures Biomass Fired (Steam) Boilers, Agro Waste Thermic Fluid Heater, run by the use of fuel which are waste (also called as Biomass / Agro Waste) and with the use of such waste, the energy is generated; that Boiler is a closed Vessel and used for producing energy by applying combustion.

4.5 The appellant has also explained what “Waste to Energy Plant” is.

4.5 The appellant has submitted that a steam boiler is a power generation device, used for generating steam by applying the heat energy to water. It has further submitted that a thermal oil / fluid boiler fires through a helical coil and generates energy from the hot products of combustion. This, by heating the coil through radiation and convection. The coil heats the thermal oil or fluid that is pumped through the thermal oil boiler. The thermal oil heats coil in various types of heat users. The appellant has submitted image (3D Model) and technicality of the product Biomass Fired (Steam) Boilers, Agro Waste Thermic Fluid Heater and has submitted that the aforesaid details shall bring a wide clarity to understand the functionality of this product; that the crucial part of the functionality of the product is stage of generation of energy.

4.7 The appellant has submitted that the product under discussion were exempt from levy of Central Excise vide Sl. No. 332 read with List 8 (Sl. No. 16) of Notification No. 12/2012-Central Excise dated 17.03.2012.

4.8 As submitted by the appellant, waste (also known as fuel) used to generate energy in Biomass Fired (Steam) Boilers, Agro Waste Thermic Fluid Heater are illustratively stated Rice Husk, Groundnut Shell, Palm Kernel Shell, Sunflower Husk, Baggasse etc., in other words, these are biomass.

4.9 It has been submitted by the appellant that the inevitable part of clause (e) of aforesaid Entry No. 234 states that ‘Waste’ shall be used as fuel and deposited in Plant / Device (in the current case of Boiler); that the applicant has designed and manufactured the aforesaid boilers wherein the fuel used are in the nature of Agro Waste exclusively and no other types of fuel can be used when it comes to Biomass Fired (Steam) Boilers, Agro Waste Thermic Fluid Heater. The appellant has submitted that the vital part of the Boiler is the stage of energy generation. The biomass / agro waste is stored and is pushed into the furnace for combustion by help of fuel feeder. In the course of burning of waste, the heat is generated and from other part of boiler, water is pumped into, herein the heat evaporates the water which turns into steam and this is the stage where energy is generated in the boiler.

4.10 The appellant has further submitted that the different dimension of clause (e) of aforesaid Entry No. 234 is self-explanatory that “Waste to Energy Plant / Devices” formally means a waste (also known as fuel) used / deposited in Plant or device that results into generation of energy. The appellant has submitted that the first dimension to the clause (e) of aforesaid Entry No. 234 is the word “Waste” i.e. Agro Waste which is not defined under GST Law, therefore meaning of the same as per trade parlance and other references may be referred. The appellant has referred to the meanings of the terms Waste (or wastes), Rice Husk, Groundnut Shells (Peanut Shells), Palm Kernel Shells (PKS), Sunflower Husk, Baggasse etc. The appellant has submitted that its product Biomass Fired (Steam) Boilers, Agro Waste Thermic Fluid Heater is functioned by the use of aforesaid waste / fuel.

4.11 The appellant has submitted that the second dimension to the clause (e) of aforesaid Entry No. 234 is the word “Energy”, which is not defined under law, hence dictionary meaning may be referred i.e. the capacity for vigorous activity; available power. In physics, energy is the quantitative property that must be transferred to an object in order to perform work on, or to heat, the object. In the instant case, during the process of combustion in the boiler chamber i.e. burning of biomass fuel / agro waste, both heat and steam are generated which are the form of “energy”. Therefore, it has been submitted by the appellant that Agro Waste used as fuel in the combustion generates energy in the Biomass boiler.

4.12 Thereafter, the appellant has submitted that the last dimension to the clause (e) of aforesaid Entry No. 234 is the word “plant”, which is defined under Explanation to Section 17 of the Central Goods and Services Tax Act, 2017 and the Gujarat Goods and Services Tax Act, 2017 (herein after referred to as the ‘CGST Act, 2017 and the GGST Act, 2017 respectively and as the ‘GST Acts’ collectively). The appellant has further submitted that as per dictionary meaning, “device” means a tool or piece of equipment made for a particular purpose. It has been submitted that the product manufactured, which is Biomass Fired (Steam) Boilers, Agro Waste Thermic Fluid Heater can be termed as “Plant” or machinery or “Device”.

4.13 Further, the appellant has submitted that this particular product is classified under Chapter 84 and is also known as renewable energy plant / device. The appellant has referred to CBIC Circular No. 80/54/2018-GST wherein it is interalia mentioned that the concession of GST Rate at 5% (CGST 2.5% + SGST 2.5%) would be available only to such machinery, equipment, etc. which falls under Chapters 84, 85 and 94 and used in the initial setting up of renewable energy plants and devices including WTEP (Waste to Energy Plant).

4.14 The appellant has submitted that procurement of Biomass Fired (Steam) Boilers, Agro Waste Thermic Fluid Heater under discussion is usually done by the Food processing unit.

4.15 The appellant has contended that in terms of aforesaid explanation, the product Biomass Fired (Steam) Boilers, Agro Waste Thermic Fluid Heater squarely fall in clause (e) to Entry 234 of Notification No. 1/2017-Central Tax (Rate) as it fulfills the requirements of using waste (also known as fuel) which leads to generation of energy in a Plant (Boiler) and is eligible for concession rate of GST at 5%.

5. The appellant, vide letter dated 18.01.2021, has submitted Inspection Report, Performance Certificate and Product Catalogues, certified by the Chartered Engineer in respect of Agro Waste Fired Thermic Fluid Heaters and Agro Waste Fired Steam Boilers.

FINDINGS :-

6. We have considered the submissions made by the appellant in the appeal filed by them and in additional written submission as well as submissions at the time of personal hearing, Ruling given by the GAAR and other evidences available on record.

7. The issue involved in the present case is whether the products Biomass Fired (Steam) Boilers, Agro Waste Thermic Fluid Heater are covered under Entry at Sl. No. 234(e) of Schedule I of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, as amended and thereby eligible to Goods and Services Tax rate of 5% (CGST 2.5% + SGST 2.5%), or otherwise.

8.1 As the main issue involved in this case is regarding admissibility or otherwise of benefit of Entry at Sl. No. 234 of Schedule I of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, as amended, to the products of the appellant, it would be useful to refer to that entry, which reads as follows :-

S.No.	Chapter/Heading/Sub-heading/Tariff item	Description of Goods
234.	84, 85 or 94	Following renewable energy devices & parts for their manufacture (a) Bio-gas plant (b) Solar power based devices (c) Solar power generating system (d) Wind mills, Wind Operated Electricity Generator (WOEG) (e) Waste to energy plants/devices (f) Solar lantern/solar lamp (g) Ocean waves/tidal waves energy devices/plants (h) Photo voltaic cells, whether or not assembled in modules or made up into panels

• 84, 85 or 94 corrected vide M.F. (D.R.) Corrigendum F. No. 354/117/2017-TRU. Pt., dated 12-7-2017
• Clause (h) inserted vide M.F. (D.R.) Corrigendum F. No. 354/117/2017TRU, dated 27-7-2017
• Explanation inserted (not reproduced above, as not relevant for the present issue) w.e.f. 01.01.2019 vide Notification No. 24/2018-Central Tax (Rate) dated 31.12.2018

8.2 It is evident from the aforesaid Entry at Sl. No. 234 that this entry covers specified renewable energy devices & parts for their manufacture. One of such specified renewable energy devices is ‘Waste to energy plants / devices’. It is, therefore important to understand the phrase ‘Waste to energy plants / devices’.

9.1 We observe that the aforesaid Entry at Sl. No. 234 refers to various ‘renewable energy devices’. Each of the clauses (a) to (h) of the said Entry at Sl. No. 234 refers to specific ‘renewable energy device(s)’. Therefore, the phrase ‘Waste to Energy Plant / Devices’ also needs to be understood in the sense of specific ‘renewable energy device’ only.

9.2 The appellant has elaborately referred to the dictionary meaning of each of the terms “Waste” and Energy” separately (as well as to dictionary / Wikipedia meaning of various agro wastes i.e. Rice Husk, Groundnut Shells, Palm Kernel Shells, Sunflower Husk, Baggasse) and definition of ‘Plant’ under Explanation to Section 17 of the CGST Act, 2017. However, we find that this approach of referring to the meaning of each of the terms “Waste”, “Energy” and “Plant” separately, as suggested by the appellant, would not be correct approach to understand the true meaning of the phrase “Waste to energy plants / devices” used at clause (e) of Entry at Sl. No. 234 of Schedule – I of Notification No. 1/2017-Central Tax (Rate), as the “Waste to Energy Plant” (WTEP) itself is a complete phrase, which refers to a specific ‘renewable energy device / plant’.

9.3 In support of our above view, we may refer to the Government of India, Ministry of Environment, Forest and Climate Change, Notification S.O. 1357(E) dated 08.04.2016 whereby the Solid Waste Management Rules, 2016, have been notified. The said Solid Waste Management Rules, 2016 inter-alia provides as follows –

9. Duties of the Ministry of Power.-The Ministry of Power through appropriate mechanisms shall,-

(a) decide tariff or charges for the power generated from the waste to energy plants based on solid waste.

(b) compulsory purchase power generated from such waste to energy plants by distribution company.

10. Duties of Ministry of New and Renewable Energy Sources- The Ministry of New and Renewable Energy Sources through appropriate mechanisms shall,-

(a) facilitate infrastructure creation for waste to energy plants; and

(b) provide appropriate subsidy or incentives for such waste to energy plants.

Thus, while the Solid Waste Management Rules, 2016 provides for particular treatment to be accorded by the Ministry of Power and the Ministry of New and Renewable Energy Sources to the “Waste to Energy Plants”, it also make it clear that the phrase “Waste to Energy Plants” is used and understood to denote specific ‘renewable energy plant’.

9.4 The Ministry of New and Renewable Energy (MNRE) is the nodal Ministry of the Government of India for all matters relating to new and renewable energy. Wind Power, Solar Power, Small Hydro Power, Bio Power and Waste to Energy, are among several sectors of Renewable Energy. In the Annual Report 2019-20 of the MNRE, under Chapter 4 on ‘Power from other Renewables’, it has been inter-alia mentioned as follows –

4.2.25 WASTE TO ENERGY

4.2.26 PROGRAMME ON ENERGY FROM URBAN, INDUSTRIAL & AGRICULTURAL WASTES/ RESIDUES

i. …….

ii. …….

4.2.27 OBJECTIVES OF THE SCHEME

a. To promote setting up of projects for recovery of energy in the form of Biogas / BioCNG/ Enriched Biogas/ Power from urban, industrial and agricultural wastes; and captive power and thermal use through gasification in industries.

b. To promote Biomass Gasifier based power plants for producing electricity to meet the unmet demand of captive power and thermal needs of rice mills and other industries and villages for lighting, water pumping and micro-enterprises.

c. To create conducive conditions and environment, with fiscal and financial regime, to develop, demonstrate and disseminate information on recovery of energy from waste and residues.

4.2.28 SUBSIDY/GRANT/INCENTIVE PROVIDED UNDER THE SCHEME

(i) Central Financial Assistance (CFA) for projects of different categories is given in the form of capital subsidy to the promoters and in the form of Grants-in-Aid for other activities, as given below:

(a) to (d) ………

(ii) Other Incentives and Support Measures available to Waste to Energy the sector are –

a. Concessional Customs Duty and GST at rate of 5% for initial setting up of grid connected projects for power generation or production of Bio-CNG from wastes;

b. Preferential Tariff announced by the CERC /SERC;

c. Incentives to State Nodal Agencies – Service Charge @ 1% of the Subsidy restricted to ₹ 5.00 lakh per project;

d. According to the amended Tariff Policy, Distribution Licensee(s) shall compulsorily procure 100% power produced from all the Waste-to-Energy plants in the State, in the ratio of their procurement of power from all sources including their own, at the tariff determined by the Appropriate Commission under Section 62 of the Act.

It is thus evident from the foregoing that the objectives of “Waste to Energy Plant” includes ‘recovery of energy in the form of Biogas / BioCNG / Enriched Biogas / Power’.

9.5 The Government of Gujarat, Energy and Petrochemicals Department has issued ‘Gujarat Waste to Energy Policy – 2016’ vide G.R. No. REN-11-20151343B dated 28.03.2016. In the preamble of the said Policy, it has been mentioned as follows –

“1.2 Though MSW has potential to be a source of renewable energy, it has not been harnessed or exploited systematically on a significant scale. It is estimated that the MSW of Gujarat State could support Waste to Energy plant of approximately 100 MW. Using MSW as fuel for generation of electricity could increase efficiency of collection and also help in more environment friendly disposal of MSW. Therefore, Waste to Energy projects could contribute significantly to the implementation of the State Action Plan on Climate Change (SAPCC) as also “Swachh Bharat Abhiyan”.”

Thus, the ‘Gujarat Waste to Energy Policy – 2016’ also refers to ‘Waste to Energy Project’ in a specific sense. It also refers to generation of electricity through ‘Waste to Energy Projects’.

9.6 It is thus evident that the phrase “Waste to Energy Plants” denotes a particular meaning. The said phrase refers to the plants for recovery of energy in the form of Biogas / BioCNG / Electricity from agricultural, industrial and urban wastes of renewable nature such as municipal solid wastes (MSW), vegetable and other market wastes, etc. Therefore, the approach of referring to the dictionary meaning of each of the terms “Waste”, “Energy” and “Plant” separately, as suggested by the appellant, would not be correct approach to understand the true meaning of the phrase “Waste to energy plants / devices” used at clause (e) of Entry at Sl. No. 234 of Schedule – I of Notification No. 1/2017-Central Tax (Rate).

10.1 The products Biomas Fired (Steam) Boilers, Agro Waste Thermic Fluid Heater of the appellant are admittedly not “Waste to Energy Plants” in the aforesaid sense of the said phrase used in the Notification No. 1/2017-Central Tax (Rate).

10.2 The appellant has submitted what is ‘Waste to Energy Plant’ in the following words –

“Waste to energy plants burn municipal solid waste. A modern, properly run waste to energy plant sorts material before burning it and can co-exist with recycling. Waste to energy plants are similar in their design and equipment with other steam – electric power plants, particularly biomass plants. First, the waste is brought to the facility. The waste is then stored until it is time for burning. A plant combusts the waste directly because it is a mature, efficient technology. The waste can be added to the boiler continuously or in batches, depending on the design of the plant. In terms of volume, waste to energy plants incinerate 80 to 90 percent of waste. Sometimes, the residue ash is clean enough to be used for some purposes such as raw materials for use in manufacturing cinder blocks or for road construction. In addition, the metals that may be burned are collected from the bottom of the furnace and sold to foundries. The source of heat for a boiler is combustion of any of several fuels (also called as Biomass / Agro Waste).”

The products Biomas Fired (Steam) Boilers, Agro Waste Thermic Fluid Heater of the appellant in itself do not conform to the above description of the ‘Waste to Energy Plant’ submitted by the appellant inasmuch as the steam boiler is stated to be a power generation device, used for generating steam by applying the heat energy to water whereas it is stated that the coil heats the thermal oil or fluid that is pumped through the thermal oil boiler and the thermal oil heats coil in various types of heat users.

10.3 The appellant has submitted that during the process of combustion in the boiler chamber i.e. burning of biomass fuel / agro waste, both heat and steam are generated which are the form of “energy”. However, as elaborately discussed above, the “Waste to Energy Plant / devices” mentioned at clause (e) of Entry at Sl. No. 234 of Schedule I of Notification No. 1/2017-Central Tax (Rate) do not refer to ‘boilers generating heat and steam’. Therefore, the products of the appellant are not covered under the said clause (e) of Entry at Sl. No. 234.

10.4 In case the products of the appellant are required in the setting up of the “Waste to Energy Plants”, the same may still fall under aforesaid Entry at Sl. No. 234, however, neither the appellant has claimed so, nor has any evidence been brought on record in this regard.

10.5 The issue of applicability of GST on supply of Waste to Energy Plant has also been clarified by the CBIC vide Circular No. 80/54/2018-GST dated 31.12.2018, as follows –

11.1 Representations have been received regarding applicable GST rate on the goods used in the setting up of Waste to Energy plants (WTEP) in term of Sr. No. 234 of Schedule I of Notification No. 1/2017-Central Tax (Rates), dated 28th June, 2018. The said entry 234 prescribes 5% rate on the following renewable energy devices & parts for their manufacture :

(a) to (h) ……

11.2 The notification specifically applies only the goods falling under chapters 84, 85 and 94 of the Tariff. Therefore, this concession would be available only to such machinery, equipment etc., which fall under Chapter 84, 85 and 94 and used in the initial setting up of renewable energy plants and devices including WTEP. This entry does not cover goods falling under other chapters, say a transport vehicle falling under Chapter 87 that may be used for movement of waste to WTEP.

11.3 Another related doubt raised is as to how would a supplier satisfy himself that goods falling under Chapter 84, 85 and 94, say a turbine or a boiler, required in a WTEP, would be used in the WTEP. In this context it is clarified that GST is to be self-assessed by a taxpayer. Therefore, he needs to satisfy himself with the requisite document from a buyer such as supply contracts/order for WTEP from the concerned authorities before supplying goods claiming concession under said entry 234.

As clarified in the aforesaid Circular, in case a boiler falling under Chapter 84 is required in a WTEP, the taxpayer needs to satisfy himself with the requisite documents from a buyer such as supply contracts / order for WTEP from the concerned authorities before supplying goods claiming concession under said entry 234. However, as already noted, the appellant has not claimed that the products Biomas Fired (Steam) Boilers, Agro Waste Thermic Fluid Heater are required in the setting up of the “Waste to Energy Plants”. In fact, the appellant has submitted that these products are usually procured by food processing units.

10.6 In view of the foregoing, we hold that the products Biomas Fired (Steam) Boilers, Agro Waste Thermic Fluid Heater being supplied by the appellant are not covered by Entry at Sl. No. 234 of Schedule – I of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 and corresponding Notification No. 1/2017-State Tax (Rate) dated 30.06.2017.

11.1 We have already noted that Entry at Sl. No. 234 of Schedule – I of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 covers specific ‘renewable energy devices’. Therefore, only those ‘renewable energy devices and parts for their manufacture’ get covered under the said entry at Sl. No. 234. The other plants / devices, which use non-conventional fuel / renewable fuel, will not get covered under the said entry at Sl. No. 234 merely on that ground. Therefore, the products of the appellant, which uses agro-waste (bio-mass) and not conventional fuels like coal and lignite, will not get covered under the said Entry at Sl. No. 234 on this ground alone, unless it is specifically covered under any of the clauses (a) to (h) of the said Entry at Sl. No. 234.

11.2 Sl. No. 332 of Notification No. 12/2012-Central Excise dated 17.03.2012 covered “Non-conventional energy devices or systems specified in List 8” and Sl. No. 16 of List 8 of the said Notification covered “Agricultural, forestry, agro industrial, industrial, industrial, municipal and urban waste conversion device producing energy”. It is, thus evident that the entry at Sl. No. 332 read with Sl. No. 16 of List 8 of Notification No. 12/2012-Central Excise dated 17.03.2012 are not pari materia with Entry at Sl. No. 234 of Schedule – I of Notification No. 1/2017Central Tax (Rate) dated 28.06.2017. Therefore, the contention of the appellant that these products were exempt from levy of Central Excise vide Sl. No. 332 read with List 8 (Sl. No. 16) of Notification No. 12/2012-Central Excise dated 17.03.2012 will not assist the case of the appellant for claiming benefit of Sl. No. 234 of Schedule – I of Notification No. 1/2017-Central Tax (Rate) for these products.

12.1 As regards the classification of the products, the GAAR has held that the Biomass Fired (Steam) Boilers, Agro Waste Thermic Fluid Heater are classifiable under Tariff Item 8402 19 19 (sic 8402 19 90) of the CTA, 1975. The appellant has submitted that there is no dispute on the classification of these products.

12.2 The GAAR has held that these products are covered under Entry at Sl. No. 310 of Schedule – III of Notification No. 1/2017-Central Tax (Rate). On the other hand, the appellant has contended that these products are covered under Entry at Sl. No. 234 of Schedule – I of Notification No. 1/2017-Central Tax (Rate), which issue has been elaborately discussed herein above and we have already held that these products of the appellant are not covered under the said Entry at Sl. No. 234.

13. In view of the foregoing, we confirm the Advance Ruling No. GUJ/GAAR/R/74/2020 dated 17.09.2020 of the Gujarat Authority for Advance Ruling to the extent it has been appealed before us, by holding that the products Biomass Fired (Steam) Boilers, Agro Waste Thermic Fluid Heater of M/s. Isotex Corporation Pvt. Ltd. are not covered under Entry at Sl. No. 234 of Schedule I of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 and Notification No. 1/2017-State Tax (Rate) dated 30.06.2017 but are covered under Entry at Sl. No. 310 of Schedule III of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 and Notification No. 1/2017-State Tax (Rate) dated 30.06.2017 attracting Goods and Services Tax @ 18% (CGST 9% + SGST 9%), and reject the appeal.