Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
Highlights
D. Forum
What's New

Share:      

        Home        
 

TMI Blog

Home List
← Previous Next →

2019 (3) TMI 835

ation water pumping systems along with design, erection, commissioning & installation - rate of GST - Held that:- The definition of “work contract’ is concerned with the immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved and thus question arises whether the said supply would be treated as immovable or not - we have gone through the pictures provided by the applicant and find that to erect the plant/system in question a concrete platform is required and with the help of nuts and bolts the supplies in question are erected on the said platform. In the present case we find that attachment of the plant/system in question with the help of nuts and bolts to a platform/foundation intended to provide stability to the working of the plant/system and prevent vibration/wobble free operation does not qualify for being described as attached to the earth under any one of the three clauses extracted above. That is because attachment of the plant to the foundation is not comparable or synonymous to trees and shrubs rooted in earth. - The supplies in question cannot be termed as immovable property for the following reasons: (i) The plant .....

X X X X X X X

Full Text of the Document

X X X X X X X

ty of GST rate 2. Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub section (2) of section 97 or sub section (1) of section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. 3. As per the said subsection (2) of Section 97 of the Act advance ruling can be sought by an applicant in respect of : (a) Classification of any goods or services or both (b) Applicability of a notification issued under the provisions of this Act, (c) Determination of time and value of supply of goods or services or both, (d) Admissibility of input tax credit of tax paid or deemed to have been paid (e) Determination of the liability to pay tax on any goods or services or both (f) Whether the applicant is required to be registered (g) Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both within the meaning of that term 4. In the present case applicant has sought advance ruling on applicability of GST rate on said supply and whether .....

X X X X X X X

Full Text of the Document

X X X X X X X

cted across the battery terminals so that DC coming from the batteries is first converted to AC then fed to the equipment. In grid tie system the solar panel is directly connected to inverter and this inverter then feeds the grid with same voltage and frequency power. c. Controller: It is not desirable to overcharge and under discharge a lead acid battery. Both overcharging and under discharging can badly damage the battery system. To avoid these both situations a controller is required to attach with the system to maintain flow of current to and from the batteries. d. Cable: Electrical cables are required to connect the roof top module and the inverters and to grid meter. (ii) Solar Irrigation Water Pumping Systems: It is a compact and indigenous system can be set up at agriculture field where grid based electricity is not possible or expensive to establish. The contents of the same are as under: a. SPV modules: The main part of a solar power generating system is the solar photovoltaic modules. Solar Modules contain photovoltaic cells which convert the sun light into electricity and transmitted the produced electricity to inverters through cables and electrical connectors. b. VFD .....

X X X X X X X

Full Text of the Document

X X X X X X X

System has not been defined in GST. We also find that in erstwhile Central Excise regime, though exemption to said Solar power Generating System was granted vide serial no. 332 of Notification No. 12/12-CE dated 17.03.2012 but the same has also not been defined in the said regime. The relevant portion Notification No. 12/12-CE dated 17.03.2012 is reproduce as under: Sl.No. Chapter or heading or sub-heading or tariff item of the First Schedule Description of excisable goods Rate 1 2 3 4 332 Any Chapter Non-conventional energy devices or system specified in List 8 Nil List-8: 1) Flat plate solar Collector (2) Black continuously plated solar selective coating sheets (in cut length or in coil) and fins and tubes (3) Concentrating and pipe type solar collector (4) Solar cooker (6) Solar air heating system (7) Solar low pressure steam system (8) Solar stills and desalination system (9) Solar pump based on solar thermal and solar photovoltaic conversion (10) Solar power generating system (11) Solar photovoltaic module and panel for water pumping and other applications (12) Solar crop drier and system (13) Wind operated electricity generator, its components and parts thereof including roto .....

X X X X X X X

Full Text of the Document

X X X X X X X

fact that Solar Photovoltaic Module is a Solar Power Generating System. We find that other parts are only panel housing consisting of controllers and switches. Hence the whole system is a Solar Power Generating System and is entitled for the benefit of notification. Therefore, the denial of benefit of notification by the adjudicating authority is not sustainable. The impugned order is set aside and the appeals are allowed. *BHEL Vs CCE [2008 (223) ELT 0609 (Tri. - Bang.)] = 2007 (10) TMI 165 - CESTAT, BANGALORE 1. The point at issue is whether the 'Solar Inverter Charger for solar lantern' is entitled for the benefit of exemption Notification 5/99-C.E., dated 28-2-99. The contention of the revenue is inverter charger should be classified under Heading No. 80.03 of the C.E. Tariff Act as a component of solar power generating system or solar lantern. The exemption Notification No 5/99 C.E., dated 28-2-99 as amended exempts "nor conventional energy systems" specified in list 4 of the Notification from payment of duty. Since the exemption notification exempts total system and not parts the system, the lower authority held that the inverter charger for solar lantern i .....

X X X X X X X

Full Text of the Document

X X X X X X X

reproduce as under: Notifications 06/2002-CE dated 01.03.2002 Sl.No. Chapter or heading or sub-heading or tariff item of the First Schedule Description of excisable goods Rate 1 2 3 4 237 Any Chapter Non-conventional energy devices or system specified in List 9 Nil List-9: (1) Flat plate solar collector (2) Black continuously plated solar selective coating sheets (in cut length or in coil)and fins and tubes (3) Concentrating and pipe type solar collector (4) Solar cooker (5) Solar water heater and system (6) Solar air heating system (7) Solar low pressure steam system (8) Solar stills and desalination system (9) Solar pump based on solar thermal and solar photovoltaic conversion (10) Solar power generating system (11) Solar photovoltaic module and panel for water pumping and other applications (12) Solar crop drier and system (13) Wind operated electricity generator, its components and parts thereof (14) Water pumping wind mill, wind aero-generator and battery charger (15) Bio-gas plant and bio-gas engine (16) Agricultural, forestry, agro-industrial, industrial, municipal and urban waste conversion device producing energy (17) Equipment for utilizing ocean waves energy (18) Solar l .....

X X X X X X X

Full Text of the Document

X X X X X X X

the same are applicable to the instant case. Therefore goods as discussed supra which are used in connection with generation of power from sunlight are covered under the definition of Solar Power Generating System and will be covered under serial no. 234 of Schedule-I of the Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017, the applicable rate of GST on such supply of Solar Power Generating System will attract @ 5% and accordingly as per serial no. 234 of Schedule-1 of the Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017, the applicable rate of GST on such supply will be 5% [2.5% CGST + 2.5% SGST]. 8.6 From the application submitted by applicant we also find that they are also involved in designing, erection, commissioning & installation of solar rooftop power plant and solar irrigation water pumping systems. Thus both the goods & services are involved in the supply in question. Now the question arises whether the same is covered under composite supply or mixed supply . 8.7 From the law position (supra) we observe that a supply can be called composite supply if - i. supplies of two or more services/ good which are inseparable from each other in ordi .....

X X X X X X X

Full Text of the Document

X X X X X X X

pletion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in Some other form) is involved in the execution of such contract; 8.11 The definition of work contract (supra) is concerned with the immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved and thus question arises whether the said supply would be treated as immovable or not. We find that the very important term immovable property is not defined in GST Law so we have to rely on definition given on other laws. Immovable property is defined in Section 3(26) of the General Clauses Act, 1897 as under: Immovable property shall include land, benefits to arise Out of land and things attached to the earth, or permanently fastened to anything attached to the earth. Term attached to earth is defined u/s 3 of the Transfer of Property Act as meaning: (a) rooted in the earth, as in the case of trees and shrubs; (b) imbedded in the earth, as in the case of walls or buildings; or (c) attached to What is So imbedded for the perma .....

X X X X X X X

Full Text of the Document

X X X X X X X

ld as movable. 8.14 In view of the above we observe that the supplies in question cannot be termed as immovable property for the following reasons: (i) The plants/ systems in question are not per se immovable property. (ii) Such plants/systems cannot be said to be attached to the earth within the meaning of that expression as defined in Section 3 of the Transfer of Property Act. (ii) The fixing of the plants/ systems to a platform/foundation is meant only to give stability to the plant/ system and keep its operation vibration free. (iv) The setting up of the plant/ system itself is not intended to be permanent at a given place. 8.15 Thus the supplies under consideration are out of the ambit of work contract service in as much as the question of immovable property does not arise which has been discuss at length supra. 8.16 It is pertinent to mention here that GST Council in the 31st meeting held on 22nd December, 2018 at New Delhi took following decisions relating to issue in hand and clarified as under:- GST on solar power generating plant and other renewable energy plants GST rate of 5% rate has been prescribed on renewable devices & parts for their manufacture (bio gas plant/ .....

X X X X X X X

Full Text of the Document

X X X X X X X

 

 

← Previous Next →

 

 

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Blog || Site Map - Recent || Site Map ||