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TMI Blog2021 (7) TMI 1211X X X X Extracts X X X X X X X X Extracts X X X X ..... pt for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- 1. M/s Nagpur Waste Water Management Private Limited (referred as Applicant) is a Private Limited Company registered under Central Goods and Services Tax Act. 2017 (CGST Act) and Maharashtra Goods and Services Tax Act, 2017 (MGST Act) w.e.f 01.07.2017 Nagpur Municipal Corporation (NMC) is constituted under the city of Nagpur Municipal Corporation Act, 1948. Therefore, NMC is "local Authority". The NMC is required to provide the services of management of sewage system within the city of Nagpur. NMC, in order to manage the sewage system of Nagpur city and to treat the sewage water generated in Nagpur City, has decided to set up and operate the Sewage Treatment Plant (STP) located at Bhandewadi. Nagpur. NMC' has appointed the applicant, under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wadi, Nagpur. The sewage so brought at Bhandewadi is first fine screened to remove all trash. Then the sewage is passed through detirators to remove the silt & grid particles. Then the sewage is taken through gravity in tanks and oxygen is infused in the sewage to remove impurities through biological process. Chemicals like FeC13 and Chorine too are mixed to remove the bacteria and impurities Polyeleclrolyte is further used for sludge treatment and dewatering the same. This partially purified sewage water is then passed through fiber disk fillers to remove the suspended solids and dead biological matter to purify the sewage to the level that the power plants need. This purified sewage water which is TTW is then pumped to Koradi and Khaperkheda power plants through a pipeline The TTW is used in the cooling lowers of power plants. The following table explains the parameters of the inlet raw sewage water and parameters of finally processed Tertiary Treated water. Raw Sewage inlet Parameters and output parameters of TTP Plant. S.No. Parameters Units Inlet Raw Sewage Parameters for STP Outlet Treated Sewage Parameter from SIP-TIP Reference As per Vol-lI (Pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) (4) (5) (6) Schedule II-6% 46 B 2201 Drinking water packed in 20 litres bottles 6 NIL Schedule III- 9% 24 2201 Waters, including natural or artificial mineral waters and aerated waters. not containing added sugar or other sweetening matter nor flavoured other than Drinking water packed in 20 litres bottles 9 NIL Combined rate (SGST& CGST)/IGST is 12% and 18% respectively 3. Under GST, several services and goods were exempted by issuing notifications under the CGST Act and SGST Act. Notification No. 02/2017-C.T.-(Rate), dt. 28-06-2017 was issued to notify the exemptions on supply of goods under CGST Act. Entry relating to water was notified at Serial No. 99 of the Notification. The same is reproduced below: SI.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (%) Condition (1) (2) (3) (4) (5) 99 2201 Water [other than aerated, mineral, purified, distilled, medicinal, ionic, battery, demineralized and water sold in sealed container] Nil Nil 4. The combined reading of entries in (a) Notification No. 01/2017 C.T.-(Rate) dtd. 28-06-2017 as amended by Notification No. 06/2018 C.T.-(Rate) dtd. 25.01.2018. and (b) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ification about taxability of tertiary treated water supplied by them to Maharashtra state Power Generation Company Limited (Mahagenco). In this reference, it is to stale that, the tertiary treated water received by Mahagenco from =NWWMPL is not completely fit and usable for the desired purpose of Mahagenco Chemically, sewage water consists of water and various soluble and insoluble organic and inorganic matters. Tertiary treatment of such sewage water neither removes all the impurities nor purify the water completely. Tertiary treated sewage water is not a purest form of waive for Mahagenco's use and it still contains impurities like Hardness. Alkalinity. Bacteria, viruses. TSS, phosphate, chlorides, silica etc. which may create multiple scaling and corrosion problems in system. Hence purification off his tertiary treated water needs to be done by way of Ozonisation, Chlorination, H2S04 Dosing and chemical dosing process, to make it usable. Therefore, it is view of Mahagenco that this water is not purified water and hence GST will Inapplicable at "Nil" rate. Also, it is to state the Mahagenco is the single consumer of the water supplied by NWWMPL and therefore, the tax, if impos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 017. 3.3.1 In context with second question raised by the applicant, the entry in notification 01/2017 is reproduced below. Schedule Sr. No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (%) Condition (1) (2) (3) (4) (5) (6) Schedule II-6% 46 B 2201 Drinking water packed in 20 litres bottles 6 NIL Schedule III- 9% 24 2201 Waters, including natural or artificial mineral waters and aerated waters. not containing added sugar or other sweetening matter nor flavoured other than Drinking water packed in 20 litres bottles 9 NIL 3.3.2 The above entry in schedule III at Sr. No 24 under tariff Item 2201 @9% includes a comprehensive entry of water which includes natural or artificial Aerated, Mineral, purified water. Hence the TTW supplied by applicant to MAHAGENECO is taxable @ 9%. 04. HEARING 4.1 Online Preliminary e-hearing in the matter was held on 16.03.2021. Sh. Ashok Chandak CA appeared, and requested for admission of the application. Jurisdictional Officer Sh. Bawane was also present. 4.2 The application was admitted and called for final hearing on 20.04.2021 but due to administrative issues, the hearing was postpone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er to purify the same for further use. The eventual product generated is purified sewage water and is called as 'Tertiary Treated Water (TTW). Thereafter, the TTW is pumped to Koradi and Khaperkheda power plants of mahageneo through pipelines, where it is used in the cooling towers of the power plants. The applicant has submitted the parameters of Raw Sewage inlet and output parameters of TTP Plant in their submissions 5.5 The applicant has raised a specific question asked about such 'treated water' which is the forward supply of the applicant. We find that, 'water' is covered under Chapter heading 2201 of GST Tariff. We also find that there are two schedule entries for 'water' under Chapter headings 2201 under the CGST ACT. The first is Entry No. 99 of Notification No. 02/2017-Central Tax (Rate), dt. 28-06-2017 which is an exemption notification. The second is Entry No. 24 of Notification No. 1/2017-Central Tax (Rate) dt. 28.06.2017. 5.6.1 Sr. No. 99 of exemption Notification No. 2/2017 dt. 28.6.2017. is reproduced as below Sr.No Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (%) Condition (1) (2) (3) (4) (5) 99 2201 Water [ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Entry No. 24 prescribed in Schedule III of Notification No. 1/2017-Central Tax (Rate) dt. 28.06.2017 is reproduced as below: - Sr.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (%) Condition (2) (3) (4) (5) (6) 24 2201 Waters, including natural or artificial mineral waters and aerated waters. not containing added sugar or other sweetening matter nor flavoured 9 NIL 5.72. It is further observed that the said Entry 24 of Schedule II of Notification No. 1/2017 which relates to "Waters" was amended vide Notifications No. 06/2018-Central Tax (Rate), dt. 25-01-2018. Also, new entry relating to water was inserted vide the said amendment Notification at Sr. No. 46B of Schedule II of the Notification. Effect of all above mentioned notifications with effect from 29.02.2018 is reproduced as under: Schedule Sr. No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (%) Condition (1) (2) (3) (4) (5) (6) Schedule II-6% 46 B 2201 Drinking water packed in 20 litres bottles 6 NIL Schedule III- 9% 24 2201 Waters, including natural or artificial mineral waters and aerated waters. not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry 46B of Schedule II of Notification No. 01/2017-C.T. (Rate) dated 28.06.2017. 5.10 In view of the above discussions, we agree with views of applicant and hold that the impugned goods, called as "Tertiary Treated Water", is purified water which is sold to MAHACENCO for its further industrial use and falls under Entry No. 24 of Notification No. 01/2017 mentioned above. 5.12.1 During the course of hearing, applicant has cited different case laws which are on record. Applicant's representative has argued and pointed that the expression "ejusdem generis" is to be followed which is mentioned in the case of Siddeshvvari Cotton Mills Pvt. Ltd. Decided by the Hon. Supreme Court on 17.1.1989 (relevant para is reproduced as below): "The expression ejus-dem-generis, of the same kind or nature'--signifies a principle of construction whereby words in a statute which are otherwise wide but are associated in the test with more limited words are, by implication, given a restricted operation and are limited to matters of the same class or genus as preceding. If a list or string or family of genus describing terms are followed by wider or residuary or sweeping-up words, then the verbal context ..... X X X X Extracts X X X X X X X X Extracts X X X X
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