TaxTMI 
TaxTMI 
2018 (11) TMI 1826
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....avity 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 coated silicon rubber wires that operate angularly from opposite sides of the....
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....T 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 "Subject to Note 2 to this Chapter and Note 3 to Section XVI, a machine, the principal purpose of which is not described in any heading or for which no one purpose is the princip....
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....rpose, 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 the explanatory notes thereto Therefore HSN along with the explanatory notes provides a safe guide for interpretation of an entry" Even under erstwhile regime 'solar power based devices' have not been defined under any law. Ho....
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....trol 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. Winch Assembly it includes a drum cylinder which is connected to the cables that are rolled up upon it. A cable arrangement between the winch and the cleaning apparatus ensures an orderly rolling of the cables on the winch drum. The drum is driven by two motors-generators. When the cleaning apparatus moves upward, the....
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....pply; 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, 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." e. Schedule II clause 6 of GST law states as under: The following composite supplies shall be treated as a supply of services, namely:- (a) works con....
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....obotic 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') to the Purchaser on a date (being the System installation Date)......... 4.6 Title to the Products shall pass to the Purchaser upon payment of the final Milestone set forth in the Schedule , Annexure 2.1 (B)- - The Milestones and the Schedule "The Milestones for the payment for the Products are as follows: 1. 25% of the Contract Price at commissioning against payment of the ABG; SPY to transfer advance amount of 25% and issue LC for balance 75%, within 7 days of receipt of ABG2 3. 50% of the Contract Price on supply of the Products at the Site; SPV3 to transfer ....
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....ration 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 methods techniques, sequences procedures, safety, and security programs in connection with the performance of the Work. 3.4.3 EPC-related Work. (a) General, Supplier shall be responsible for the following (the "EPC-related Work"): (i) co-ordination with the EPC Contractor's for all interface related works until Robotic Acceptance with O&M Contractor thereafter. (ii) the Supplier's obligations set forth in the scope matrix attached as Exhibit B hereto ............. "2. Payment Terms: 2.1 80% of the Contract Price on pro-rota basis for each batch of units delivered and shall be payable, on delivery of the Robotic Systems at the Site as per approved billing breakup. Supplier shall be ....
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....at 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 of RCS (i.e. goods) for cleaning of solar panels. In this regard, reliance has been placed on the case of T. V. Sundram Iyengar & Sons v. The State of Madras [1975] 22 SCR 372 = 1974 (10) TMI 81 - SUPREME COURT 8.8. The applicant submitted that contracts entered into, by the Applicant do not constitute 'Works Contract' in terms of the OT legislation; that works contract is also defined as a composite contract and includes 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; that there is no civil works for erection and ....
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....lation 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, is working on solar power and thus, the same merits classification chapter heading 8479 and also qualifies as a 'solar power based device' in terms of sub-clause (b) of Entry no, 234 of Notification no. 1/ 2017 integrated Tax (Rate) dated 28 June 2017 (as amended from time to time) liable to GST @ 5%. 14. Apart from supply of ''robotic cleaning system" the applicant Is also engaged in installation of same. Hence, the applicant has also raised the question as to whether the supply of RCS along with provision of ancillary services, erection and commissioning services) by the Applicant construes as a Composite supply as per Section 2(30) of the CGST Act. 15. In this regard, it is observed that Section 2(30) of the CGST Act defines 'Composite supply' to mean "supply made by a taxable person to a recipient consisting of two or more taxable supplies of goo....