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2021 (8) TMI 188 - AAR - GSTClassification of supply of outputs - sale of goods or not - water sold as Water (other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container) - to be classified under Heading 2201 - effluent purchased from dyeing - classified as other wastes from chemical or allied industries (3825 69 00) is correct or not - method of arriving value for effluent using the net realization price method - comparable products and cost can be worked out or not. Scope of Advance Ruling - classification of effluent purchased - method of arriving value for purchase of effluent - HELD THAT:- It is evident that an applicant can seek an Advance Ruling only in relation to supply of goods or services or both undertaken or proposed to be undertaken by them. Further, as per Section 103(1) of the GST Act, the ruling is binding only on the applicant and the concerned officer or the jurisdictional officer of the applicant - In the case at hand, the applicant has sought ruling on the classification of the effluent purchased by them and also ruling is sought on the method of arriving value for purchase of effluent. These questions are raised as recipient of the goods and not supplier of such goods. Accordingly, this questions are not liable for admission, the fact of which was already stated during the Hearing. Classification of supply of outputs - sale of goods or not - HELD THAT:- It is evident that the applicant after entering into a contract for purchase of the ‘Raw effluent’ proposes to treat the same. The process carried out in the plant is that the raw effluent received from the member dyeing units is treated/ processed through four phases for Zero Liquid Discharge system (ZLD) - the applicant proposes to purchase the ‘Raw effluents’, treat them on their own account and sell the resultant products at market rates. Therefore, in this modus of operation, the classification of the supply of outputs as sale of goods is correct. Classification of water sold as Water (other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container) - to be classified under Heading 2201 - HELD THAT:- It is seen from the process description that three stage RO system is designed to get overall recovery 80% of product water by removal of dissolved inorganic salts. All the three stages are loaded with Sea Water (SW) membranes. 80% of water is restored. From the Analytical report of the recovered water dated 13.02.2021 furnished by the applicant it is seen that the TDS is 216 and it contains chlorides, Sulphates, Bicarbonates and the pH is 6.50 - it is clear that the recovered, reusable water obtained by the process of Reverse Osmosis is sold for Industrial process utilization. The water is partly de-mineralized in nature. Therefore while the CTH applicable is 2201 as stated by the applicant. The Description of the product do not fit the ‘Description of Goods’, ‘Water(other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralised and water sold in sealed container)’ given under Sl.No.99 of Notrification No. 02/2017-C. T. (Rate) dated 28.06.2017.
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