TMI Blog2022 (4) TMI 406X X X X Extracts X X X X X X X X Extracts X X X X ..... es and foreign elements. Thus, it is adequately clear that water containing anything apart from the Hydrogen and Oxygen will not be construed as pure water. It is further observed that even potable water, which is fit for human consumption, will also not be treated as pure water due to the presence of various minerals and other elements like chlorine, which are added in it to kill the harmful micro-organisms that cause diseases. Further, on application of the legal construction of noscitur a sociis to derive the meaning of the expression purified , which has not been defined under the GST law, it is seen that all the expressions of the exclusion clause of the relevant entry surrounding the word purified have got certain specific characteristics and usage - it is amply clear that the term purified , mentioned under the exemption clause of the relevant entry, will definitely not include the TTW. Hence, the impugned product, i.e., TTW, is rightfully eligible for exemption under entry at SI. No. 99 of the exemption notification no. 02/2017-C.T. (Rate) dated 28.06.2017. The Appellant s contention is agreed upon in as much as that the Government, whether the Central Gove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of sewage water generated in Nagpur city. 3.2. For undertaking the aforesaid activities, the Appellant is being paid on the basis of agreed capital expenditure (CAPEX) and operating expenses (OPEX) by the NMC as a consideration. The said consideration is being charged by the Appellant from NMC along with the applicable GST. 3.3 In addition to this, the Appellant is also entitled to sell the Tertiary Treated Water to any person for non-potable application. Nagpur Municipal Corporation (NMC), Maharashtra State Electricity Generating Company Limited (MAHAGENCO) and the Appellant had entered into a tri-partite Agreement dated 29.12.2017 for supply of 150 MLD Tertiary Treated Water (hereinafter referred to as TTW ) to MAHAGENCO on daily basis which was subsequently amended by the Agreement dated 20.11.2018 vide which the supply of the said TTW was increased by 40 MLD, thereby, making the total supply of TTW amounting to 190 MLD on daily basis. Under the said Tri-partite Agreement, the Appellant was required to set-up a Tertiary Treatment Plant to further treat water from Sewage Treatment Plant (STP) at Bhandewadi and supply the TTW to MAHAGENCO through Pipeline laid by the Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O, the Appellant had filed an Advance Ruling Application dtd.19.12.2020 before the Maharashtra Authority for Advance Ruling for seeking clarification on the taxability on the supply of the impugned product, i.e., Tertiary Treated Water. 4. The MAAR, vide the impugned Advance Ruling Order No. GST-ARA-65/2020-21/B-35 dated 27.07.2021 , has held that the Tertiary Treated Water is purified water and therefore, not covered under the exemption Notification No. 02/2017-CT-(Rate) dtd.28.06.2017, and therefore, not exempt from tax. The Authority further held that the impugned product was covered under Schedule III, Entry 24, under the Chapter Heading 2201, and therefore, was Iiable to GST at the rate of 18 % (CGST@ 9% and SGST@9%). 5. Aggrieved by the aforesaid Advance Ruling Order, the Appellant has preferred the present appeal before the Maharashtra Appellate Authority for Advance Ruling (MAAAR) on the following grounds: GROUNDS OF APPEAL 5.1 That on the facts and circumstances of the case, and after applying rule of Ejusdem-Generis for true and correct interpretation of Entry 99 of the Notification No. 02/2017 dtd.28.06.2017, it has been submitted that the Learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sideration. 7.2 Shri Chandak, in the aforesaid hearing, contended that the TTW (Tertiary Treated water) supplied by the Appellant to M/s. MAHAGENCO would not qualify to be purified water , as it still contained various chemical impurities, bacteria and viruses due to which the said TTW was not fit for human consumption. Shri Chandak further contended that since the term purified water mentioned in the entry at SI. No. 99 of the Exemption Notification No. 02/2017-C.T.(Rate) dated 28.06.2017 is not defined in the CGST Act, 2017, therefore, in such case, the common parlance meaning may be assigned to the said term purified water . As such, since, there is no commodity like purified water in the trade and the trade construes purified water as water purified for some specified purposes like distilled water or water for injection. Therefore, it was contended that the impugned product, i.e., TTW, would not be construed as purified water . In this regard, the Appellant have placed reliance upon the Hon ble Supreme Court Judgment in the case of M/s. Porritts and Spencer (Asia Limited) V/s. State of Haryana (1978 42 STC 433). 7.3 The Appellant s representative also relied upon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rm purified is not defined under the CGST Act, 2017, we will resort to the dictionary meaning of the same. As per the website Dictionary.com , the term purify means: 1) to make pure; free from anything that debases, pollutes, adulterates, or contaminates; 2. to free from foreign, extraneous, or objectionable elements; As per the Cambridge Dictionary , the term purify means: 1. to remove bad substances from something to make it pure; 11. Thus, as per the dictionary meaning, the term purify means to make pure , or to free from foreign, extraneous, or objectionable elements . Accordingly, the purified water means such water which is free from foreign, extraneous, or objectionable elements. 12. Now, on perusal of the facts of the case, it is seen that the impugned product, i.e., TTW, is obtained after carrying out various physical and biological processes on the sewage water. By carrying out the said physical and biological processes on the sewage water inside the Sewage Treatment Plant and Tertiary Treatment Plant, the sewage water is made free from various organic and inorganic substances, such as suspended particles, grit, clays, pollutants l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hile the same is not the case with the impugned product, i.e., TTW, which are supplied through pipelines without any such concerns. Thus, from the foregoing, it is amply clear that the term purified , mentioned under the exemption clause of the relevant entry, will definitely not include the TTW. Hence, the impugned product, i.e., TTW, is rightfully eligible for exemption under entry at SI. No. 99 of the exemption notification no. 02/2017-C.T. (Rate) dated 28.06.2017. 16. The Appellant has also contended that it has never been the intention of the Government, i.e., either Central Government or State Government, to levy any indirect tax on water of general purposes. In this regard, they have stated that even under the erstwhile indirect tax regime, no tax, whether in the nature of Central Excise or in the nature of VAT, was leviable on the water of general purposes, hence the supply of TTW was not subject to any indirect tax under the erstwhile tax regimes. Basis this contention, they have argued that the said impugned product, i.e., TTW, will also not be liable to tax even under the GST regime. They have further contended that since the impugned product was not subject to any i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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