TaxTMI 
TaxTMI 
2019 (3) TMI 835
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.... (a) Whether the supply of solar rooftop power plant along with design, erection, commissioning & installation is a 'composite supply' and the applicability of GST rate'. (b) Whether the supply of solar irrigation water pumping systems along with design, erection, commissioning & installation is a 'composite supply' and the applicability 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 ....
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....t the sun light into electricity and transmitted the produced electricity to inverters through cables and electrical connectors. b. Inverters: The electricity produced in a solar panel is DC. Electricity we get from the grid supply is AC. So it is required to install an inverter to convert DC of solar system to AC of same level as grid supply. In off grid system the inverter is directly connected 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....
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.... (iv) Section 8 of the Act ibid: The tax liability on a composite or a mixed supply shall be determined in the following manner, namely:- (a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply; and (b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax. 8.2 We find that "Solar Power Generating 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 c....
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....n is that as the whole system is working on the solar power, therefore, they are entitled the benefit of the notification. 5. For ready reference the relevant portion of the Notification No. 6/02 dated 1-3-02 is reproduced below: "237. Non-conventional energy devices/systems specified in List 9." The list 9 of the above notification covers Solar Power Generating system. 6. The simple reading of the notification provides exemption to the non-conventional energy devices/system specified in List 9. 7. The adjudicating authority admitted the 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....
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....igh frequency AC power from in-light with, the help of SPV module and supplying it to the compact fluorescent lamp of a solar lantern. In view of the above, expert opinion, we hold that e impugned item can be considered as solar power generating system and is entitled for the benefit of the exemption Notification. Therefore, we allow the appeal with consequential relief. 8.4 On going through the cases pronounced by the Hon'ble Tribunal we find that the said judgments are on the lines of Notifications 06/2002-CE & 5/99-CE. Therefore, we have to go through the said notifications to find out whether the same are applicable to case in hand. The relevant portion of the same are 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 cook....
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....Solar photovoltaic cells. 8.5 on going through the Notifications 12/12-CE, 06/2002-CE & 5/99-CE (supra), we find that there is no change in the description of goods viz "Non. Conventional energy devices or systems specified in List "in the said notifications and Solar power generating systems in the list appended to said notifications however their entry against serial no. & list nos. appended to said notifications keeps on changing during the relevant period except that there is no material change in the said notifications. Thus we observe that said notifications are similar in character and are identical to the Notification No. 01/2017-Central Tax (Rate) dated Therefore case laws discussed above have a great impact on the case in hand and Observe that 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....
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....eated as "work contract". The applicant argued in their letter dated 18.12.2018 that the supply in question are fixed by nuts & bolts to the foundation not because the intention was to permanently attach it to the earth but because a foundation is necessary to provide and wobble free operation and has to be treated as movable. In support of their argument they rely on Hon'ble Apex Court judgment in the case of CCE Vs Solid & Correct Engineering Works & Ors = 2010 (4) TMI 15 - SUPREME COURT and Sirpur Paper Mills Ltd vs CCE = 1997 (12) TMI 109 - SUPREME COURT OF INDIA. 8.10 In this context we have gone through the legal provisions of law and the Same is reproduced as under: Section 2(119) Of the Act "works contract" means a contract for building, construction, fabrication, completion, 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 prope....
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....f our view we rely on following case laws: i. Commissioner of Central vs Solid and Correct Eng Works (Civil Appeal No. 960-966 of 2003) (SC) = 2010 (4) TMI 15 - SUPREME COURT: It was held that the plants were not per se immovable and they become immovable when embedded in the earth. The attachment of the plant with nuts and bolts intended to provide stability and prevent vibration is not covered as attached to earth. The attachment can be easily detachable from the foundation and is not permanent. ii. Sirpur Paper Ltd v. Collector of Central Excise, Hyderabad (1998) 1 SCC 400 = 1997 (12) TMI 109 - SUPREME COURT OF INDIA : Excise duty on paper making machine - Attached to earth for operational efficiency - If the appellant wanted to sell the paper-making machine it could always remove it from its base and sell it - Held 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 i....