The Tamil Nadu Authority for Advance Ruling has held that Pressure Swing Adsorption (PSA) Medical Oxygen Generation Plant attracts 18% GST.
The applicant Freeze Tech Innovations are engaged in the manufacturing of PSA Medical Oxygen generation plant. The applicant approached AAR to know before dealing with its customers, the applicable HNS Code and GST rate on their product.
The applicant submitted that the plant is manufactured and assembled in-house and is installed at the customer place. On the assembling the applicant submitted that the PSA Tank is filled with zeolite molecular sieve and activated alumina mounted in a SKID. Valves are connected and the pipelines are checked with leak detectors. Pipeline also checked for 12 bar Hydro pressure test for safety purpose.
The Authority observed that the plant which is not in the genre of the appliances used for ozone therapy, oxygen therapy, aerosol therapy, artificial respiration or other therapeutic respiration apparatus include in the CTH 901920.
The Authority further observed that the function of the product is generation of Oxygen gas. It works on the principle of Pressure Swing Adsorption, which is being used to separate Oxygen from the Compressed air. The PSA Medical Oxygen Generator supplied by the applicant is an Air Separator and not a therapeutic device and therefore the product is classifiable under CTH 8421.
The Coram of Sri T.G.Venkatesh, I.R.S. and Smt. K. Latha has ruled that the product ‘PSA Medical Oxygen Generation Plant’ is classifiable under CTH 8421 and applicable GST at the rate of 18%.
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