Composite supply/ Mixed supply— classification of the supply of UPS along with the battery—The core issue involved in this appeal is whether UPS supplied with external storage battery is naturally bundled and hence a composite supply under the GST Act, or a mixed supply, as held by the West Bengal Authority for Advance Ruling.
Held that—There is no denying of the fact that an in-built battery of static converter (UPS) is part and parcel of the uninterrupted power supply system and is covered under Tariff Head 8504 and intra-State supply thereof attracts tax under GST Act as per rate applicable to goods enumerated under Schedule III of Tax-Rate Notification(s), vide serial No. 375, but the situation changes when storage battery or electric accumulator is supplied separately irrespective of whether under a single contract or a separate contract - the Advance Ruling was correctly made on the issue that The UPS serves no purpose if the battery is not supplied or removed. It cannot function as a UPS unless the battery is attached.

The storage battery has multiple uses and can be put to different uses and when supplied separately with static converter (UPS) it cannot be considered as a composite supply or a naturally bundled supply.

There is no infirmity in the Ruling rendered by the West Bengal Authority for Advance Ruling - appeal dismissed - decided against appellant.[APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL] [2018] 2 TAXLOK.COM 279 (AAAR-WB)