TaxTMI 
TaxTMI 
2018 (11) TMI 1826
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....¢ controlled airflow over the panel surface and • gravity to ensure soiling is moved downwards and off panel rows. 2. Ecoppia's end-to-end cleaning solution is enabled by a unique water-free robotic cleaning process, offering an alternative to the traditional water and labour intensive techniques. Each E4 cleaning fleet is remotely managed from a dashboard or mobile app; 3. Each robot uses a dedicated solar panel to charge onboard batteries, requiring no external power supply. The microfiber elements with controlled air flow, robots utilize gravitation to move dust particles downwards and off the panels, The robots move along a rigid aluminum frame using wheels coated with polyurethane to ensure smooth movement and no load on the solar panels' surface (i.e. the robot carry out repeatedly a cycle of movements) Each cleaning robot is powered by five electric motors - two motors driving the horizontal movement along the solar panel row, two motors powering the vertical up-and-down movement, and one motor operating the rotation of the microfiber elements. To maintain a smooth sustainable upward and downward movement, the E4 robot uses a winch system with two coate....
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....n under which solar powered RCS should be classified, for GST purposes. 7.2. The GST Rate Notification, inter alia, provides as follows: S.No. Chapter / Heading / Sub-heading / Tariff item Description of Goods GST RATE 234 84, 85 or 94 Following renewable energy devices & parts for their manufacture (a) Bio-gas plant (b) Solar power based devices (c) Solar power generating system (d) Wind mills, Wind Operated Electricity Generator (WOEG) (e) Waste to energy plants / devices (f) Solar lantern / solar lamp (g) Ocean waves/tidal waves energy devices/plants (h) Photo voltaic cells, whether or not assembled in modules or made up into panels 5% Relevant extracts of Tariff Heading 8479 of the First Schedule to the Customs Tariff Act, 1975 {'Customs Tariff) reads as follows: Tariff Item Description of Goods 8479 MACHINES AND MECHANICAL APPLIANCES HAVING INDIVIDUAL FUNCTIONS/ NOT SPECIFIED OR INCLUDED ELSEWHERE IN THIS CHAPTER 8479 50 00 - Industrial robots, not elsewhere specified or included 84799090 --- Other Explanatory notes to Chapter 84 clearly states ....
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....d to. As per Oxford Dictionary, the term 'solar-powered is defined as "Using power derived directly from the sun's rays" Additionally, Oxford Dictionary defines 'device' as "a thing made or adapted for a particular purpose, especially a piece of mechanical or electronic equipment." Hence, device typically includes various components/ parts which are manufactured/ assembled together for performing a function. Various dictionaries define solar power based devices generally to mean the devices which are powered by sunlight/either directly or through electricity generated by solar panels. As per the Law Lexicon the term 'solar has been defined 'as pertaining to the sun, measured by the progress of the sun; produced by the sun". Further the term device has been defined in the Law Lexicon Dictionary as "that which is devised or formed by design; a contrivance; an artificial contrivance. So also the term has been variously defined as meaning an invention; a stratagem, a project, and artifice, also, used to denote hearing or emblematic representation or motto; "Further, the scheme of the central Excise Tariff is based on Harmonised System of Nomenclature (for short "HSN") and t....
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....r cleaning of the solar panels have been mentioned below: i. Control and power supply • Solar panel assembly- Solar pane), positioned in the central lower part of the docking station outside the array, charges the batteries: • Control box assembly- Control box includes programmable logic controller (PLC), Power Board PCB, transceiver unit and wiring; • Batteries box assembly- Battery box consists of 4 batteries - 2 main and 2 back up supplies power of 24V for the system operation; ii. Main structure • Main frame assembly - It is constructed from aluminum profiles, the main frame overlaps the width dimension of the solar row and has all other subsystems, connected to it; • Left and right wheel assemblies - The wheels enable the movement of the frame and the robotic unit horizontally alongside the array; iii. Rotational cleaning Cylinder assembly (Cleaning apparatus) - The cleaning apparatus consists of two rotational cylinders with microfiber fins. A motor drives the unit with a belt system and aluminum wheels. Cables drive the cleaning system upward and downward the main frame; iv. ....
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....ply"; b. Section 2(90) of the CGST Act defines principal supply as "principal supply means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary"; Thus, principal supply refers to the supply which is the predominant element in a composite supply; Illustration: Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply. c. Section 8 of the CGST Act states that the tax liability in case of a composite 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" Thus, in case of composite supply, the rate applicable on the principal supply applies on the entire bundle of taxable supplies. d. Section 2(119) of CGST Act defines 'Works contract' as follows: "a contract for building, construction, fabrication, completion, erection,....
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....emises. 8.5 Relevant extracts of various agreements entered into by the Applicant a Relevant clauses of the Supply agreement between Ecoppia and Heramba Renewables Limited dated 26 May 2017: "Ecoppia and Purchaser shall hereinafter be referred to jointly as the "Parties" or singularly as a "Party" WHEREAS Ecoppia designs, manufactures and supplies robotic technology which (cleans photovoltaic solar panel arrays in solar parks, and WHEREAS Purchaser desires that Ecoppia supplies, and Ecoppia agrees to supply such robotic technology to Purchaser for the PY Plant (as defined below} pursuant to the terms set forth herein below." 2. Supply Ecoppia agrees to undertake the design and supply of the products in accordance with the technical specifications provided for in Annexe 2.1(A) hereto ('the Product'}, pursuant to the milestones (each a 'Milestone' and together the 'Milestones') and the time schedule (the Schedule) attached as Annexe 2.1(B) hereto....... 4. Delivery and Installation; Title Ecoppia agrees to sell, assign, install, convey, handover and transfer the Systems specified in Annexure 4.1 hereto ('the System') t....
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.... all services necessary to procure, supply, pack,; load, ship, and unload at the Site the Robotic System and design, engineer, equip, install, construct, erect, inspect, interconnect, commission, test, complete, document and deliver the Robotic System in accordance with..... "3.2 Design and Engineering. 3.2.1 Supplier shall perform all design and, engineering of the Robotic System in accordance with all Contract Requirements.... 3.3 Robotic Systems. 3.3.1 Supply Supplier shall manufacture, assemble and supply the Robotic Systems in accordance with the Project Schedule and as otherwise required for the. completion and safe and proper operation of the Facilities in accordance with (a) Applicable Low, (b) the Specifications, and (c) Prudent Utility Practices." 3.4 installation, Erection, Construction and inspection of Work. 3.4.1 Setting Out Supplier shall be responsible for accurately setting out, assembly and installation of Robotic System inspection and quality control services required to ensure that all Work is performed in accordance with this Agreement. Supplier shall be safely responsible for all construction means....
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....ncipal supply should also get covered as composite supply and taxable at the rate applicable to the principal supply of RCS/ E4 (i.e. solar power based device). In view of the above, it is submitted that in the instant case, the sale of the RCS is principal intent between the Applicant and its customers and the installation of RCS is and incidental activity. Accordingly, the transaction should be treated as that of sale of RCS and GST should be levied accordingly. 8.7. Supply of RCS and its erection, installation and commissioning services are naturally bundled - that in order to make the RCS operational, it is essential that the same be erected and installed atop the solar panels, by way of nuts and bolts. Without such erection and commissioning activity, the RCS would not be able to function; that in the instant case the customer perceives the entire contract to be a contract for supply of RCS/ E4 as the intent of both the parties is supply of RCS, for cleaning of solar power plants! panels. Hence the entire contract for supply of RCS and its erection, commissioning and installation (both goods and services) are naturally bundled and linked wherein the main intent is sale o....
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.... for personal hearing was granted to the applicant on 19.11.2018 which was attended by Ms. Tanushree Roy, Consultant, Ms. Tanu Garg, Consultant, Sh. Amit Singla, AVP (Operation), Sh. Eran Meller, CEO, Sh. Areye Lumelsky, Director (Finance) and Shaiiey Malik, Manager Finance. They had reiterated the submissions made by them in their application and the accompanying record. DISCUSSIONS AND FINDINGS OF THE AUTHORITY 11. We have carefully gone through the facts and records of the case, in the instant case, the applicant seeks advance ruling in the matter of classification and rate of GST applicable on the robotic cleaning systems (RCS) being supplied by them. 12. The functioning of the said robotic cleaning systems, as is apparent from the submissions made by the applicant it is observed that the applicant is engaged designing, 'supplying and installation of solar powered Robotics Cleaning System for cleaning photovoltaic solar panel arrays in solar parks. Elaborate working and functioning of the said systems have been discussed in the preceding paras, on the basis of submissions made by the applicant. From the submissions of the applicant, it is observed that the said product....