TMI Blog2021 (12) TMI 883X X X X Extracts X X X X X X X X Extracts X X X X ..... circular. The circular clarifies the doubt regarding the Waste to Energy Plants and it is clearly stated in Para 11.3, that the tax being self-assessed, the supplier, before effecting the supply adopting the concessional rate, has to satisfy himself with the requisite documents from the recipient, such as supply contracts or order for WTEP from the concerned authorities. Therefore, the Concerned authority specified in the said circular is not this Authority, but the buyer of such WTEP As its related parts. However, as the question raised is on the applicability of the entry of the notification, the same is answered. In the instant case, the applicant has produced copies of Purchase orders no.PO 61 dt.21.01.2021 and PO 133 dt. 16.02.2021 received from M/s. Coral Manufacturing Works India Pvt Ltd, wherein it has been specified that the purchase orders are for the supply of Form wound coil(Stator coil) HSN 85030090, for Enercon Make, Wind Operated Electricity Generator EP3 E138. Thus, the fact of supply of stator ( oils being meant for manufacture of WOEGs is established - GST being self assessed tax, the applicant should satisfy himself that such goods would be used in the WOE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. 2.1 The Applicant has stated that they have received purchase orders ref: PO/Coral Coil/2021/061 and PO/Coral Coil/2021 / 133 both with amendment dated 18.06.2021 from Coral Manufacturing Works India Private Ltd (GSTIN 33AAICC4 646K1ZT) for the manufacture and supply of stator coils for wind operated electricity generators [WOEG]; that buyer has stated in the PO that the item ordered is for use solely and principally with Enercon WOEG production; that the applicant has a dedicated coil manufacturing facility at the registered location, which caters to all types of customers such as OEMs (original equipment manufacturers) and rewinders all over the world; that the stator coils so manufactured by the applicant have utility in all types of generators. They have submitted further that while clarifying doubts on GST rates, w.r.t. SI.No.234 in the said GST Notifications the CBIC, vide its circular No.80/54/2018 GST dated 31.12.2018 specifically observed in para 11.3 as below:- 11.3 Another related doubt raised is as to how would a supplier satisfy himself that goods falling under Chapter 84, 85 and 94, say a turbine or a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... haser is into manufacturing wind mills and what was the question applied for seeking, when the notification is clear in itself. The AR submitted that they wanted to affirm their eligibility for exemption under SI No. 234 of Notification no. 01/2017-CT (Rate) dt. 28.06.2017 and that a clarification on the authority mentioned in para 11.3 of the circular no. 80/54/2018 GSR dt. 21.12.2018; they further stated that they would file a synopsis and relevant circulars for reference. 3.2. Further to the Personal hearing held, they submitted a synopsis alongwith Purchase orders no. PO 61 dt.21.01.2021 and PO-133 dt. 16.02.2021 received from M/s. Coral Manufacturing Works India Pvt Ltd, wherein it has been specified that the purchase orders for supply of Form wound coil(Stator coil) HSN 85030090, for Enercon Make, Wind Operated Electricity Generator. EP3 E138. They have submitted copy of Generator supply agreement entered into between M/s. Enercon Wind Energy Pvt Ltd and M/s. Coral Manufacturing Works India Pvt Ltd (only 9 pages of the agreement). In the synopsis submitted they have stated the following:- 1. At the outset, it is submitted that the question, was impacted owing to the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry at S. No. 38 of the Table mentioned in the notification No. 11/2017-Central Tax (Rate), dated 28th June, 2017 [G.S.R. 690(E)], the value of supply of goods for the purposes of this entry shall be deemed as seventy per cent, of the gross consideration charged for all such supplies, and the remaining thirty per cent, of the gross consideration charged shall be deemed as value of the said taxable service. , 5. The issue is as to the documentary evidence to show that the Stator coils are parts for the manufacture of Wind Operated Electricity Generator (WOEG). 6. The purchase order as amended (copies already submitted with application) placed by Coral Manufacturing Works India P Ltd., on the applicant, states that the.1 goods ordered are for use solely and principally with WOEG production by Enercon Wind Energy P Ltd., New Delhi. To corroborate this, applicant is filing copy of the agreement dated 17th December 2019 between Enercon Wind Energy P Ltd., New Delhi and Coral Manufacturing Works India P Ltd. Thus these documents prove that the stator coils under supply arc parts for the manufacture of WOEG. 7. Statutorily also, stator coils fall in tariff item 85 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Order for stator Coil Outward supply Coral Manufacturing Works India (P) Ltd., Order for stator Coil Coral Coil India Private Ltd. Erode (Applicant) SCENARIO - II tax may be levied at 18% HSN code 8503 ENERGON India or Wind Mill Manufacturer ----------------------------- | | | | | ---------------------------- supply Order for stator Coil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion which is covered under the ambit of this authority under Scction97(2) of the CGST Act, 2017. 7.1 From the submissions, it is evident that the question raised before us is whether the preferential rate of 12% GST is applicable in eases of the supply of Stator Coil, when supplied to Coral Manufacturing Works Pvt Ltd., against the Purchase Orders for such supply. The applicant has furnished two purchase Orders No. PO 61 dated 21/01/2021 and PO 133 dated 16.02.2021. On perusal of these POs, it is seen that these are Purchase Order for Enercon Generator Production E138 EP.E2 and the Invoice is to be raised on Coral Manufacturing Works Pvt Ltd . The applicant has further furnished 9 pages of cop\ of Generator Supply Agreement entered into between Enercon Wind Energy Private Limited as buyer and Coral Manufacturing Works India Private Limited as Supplier. From the furnished pages of the agreement, it is seen that Coral Manufacturing Works Pvt Ltd supplies generators for WECs built as per the Buyers Technical Specifications and Quality Assurance Agreement and M/s. Enercon Wind Energy Private Limited is obligated to purchase certain minimum number of Generators Annually from C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arified that GST is to be self assessed by a taxpayer. Therefore, he needs to satisfy himself with the requisite document from a buyer such as supply contracts/order for WTEP from the concerned authorities before supplying goods claiming concession under said entry 234. The above clarifies the applicability of GST on Waste to Energy Plant. It clarifies that the benefit of concessional rate is available to such equipment, machinery, etc which fall under Chapter 84, 85 and 94 and used in the initial setting up of renewable energy plants and devices; and that GST being self assessment tax, the taxpayer is to satisfy himself with the requisite document from a buyer such as supply contracts / Order for WTEP from the concerned authorities before supplying goods claiming the concession. We find that the applicant has mis read the clarification and is before us considering this Advance Ruling authority as the concerned authorities mentioned in the said circular. The circular clarifies the doubt regarding the Waste to Energy Plants and it is clearly stated in Para 11.3, that the tax being self-assessed, the supplier, before effecting the supply adopting the concessional rate, has to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at 9% under CGST and SGST, under which the subject stator coils fall. 7.5 In the instant case, the applicant has produced copies of Purchase orders no.PO 61 dt.21.01.2021 and PO 133 dt. 16.02.2021 received from M/s. Coral Manufacturing Works India Pvt Ltd, wherein it has been specified that the purchase orders are for the supply of Form wound coil(Stator coil) HSN 85030090, for Enercon Make, Wind Operated Electricity Generator EP3 E138. Thus, the fact of supply of stator ( oils being meant for manufacture of WOEGs is established. They have also submitted 9 pages of the copy of Generator supply agreement entered into between M/s. Enercon Wind Energy Pvt Ltd (the buyer) and M/s. Coral Manufacturing Works India Pvt Ltd, (the supplier) wherein it has been stated that the buyer is in the business of developing, manufacturing, selling WECs and WEOGs and the supplier is engaged in the business of manufacturing and sale of generators suitable for the purpose of further manufacturing and assembly into/of the suitable for the WECs. 7.6 GST being self assessed tax, the applicant should satisfy himself that such goods would be used in the WOEG on the basis of requisite document from a bu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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