TaxTMI 
TaxTMI 
2021 (7) TMI 1211
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....of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- 1. M/s Nagpur Waste Water Management Private Limited (referred as Applicant) is a Private Limited Company registered under Central Goods and Services Tax Act. 2017 (CGST Act) and Maharashtra Goods and Services Tax Act, 2017 (MGST Act) w.e.f 01.07.2017 Nagpur Municipal Corporation (NMC) is constituted under the city of Nagpur Municipal Corporation Act, 1948. Therefore, NMC is "local Authority". The NMC is required to provide the services of management of sewage system within the city of Nagpur. NMC, in order to manage the sewage system of Nagpur city and to treat the sewage water generated in Nagpur City, has decided to set up and operate the Sewage Treatment Plant (STP) located at....
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....es, the same is pumped through pipeline at a centralized STP location at Bhandewadi, Nagpur. The sewage so brought at Bhandewadi is first fine screened to remove all trash. Then the sewage is passed through detirators to remove the silt & grid particles. Then the sewage is taken through gravity in tanks and oxygen is infused in the sewage to remove impurities through biological process. Chemicals like FeC13 and Chorine too are mixed to remove the bacteria and impurities Polyeleclrolyte is further used for sludge treatment and dewatering the same. This partially purified sewage water is then passed through fiber disk fillers to remove the suspended solids and dead biological matter to purify the sewage to the level that the power plants need. This purified sewage water which is TTW is then pumped to Koradi and Khaperkheda power plants through a pipeline The TTW is used in the cooling lowers of power plants. The following table explains the parameters of the inlet raw sewage water and parameters of finally processed Tertiary Treated water. Raw Sewage inlet Parameters and output parameters of TTP Plant. S.No. Parameters Units Inlet Raw Sewage Parameters for STP Outle....
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....tions w.e.f. 29.02.2018 on the entry 24 of Notification No. 1/2017 Central Tax (Rate) is as under: Schedule Sr. No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (%) Condition (1) (2) (3) (4) (5) (6) Schedule II-6% 46 B 2201 Drinking water packed in 20 litres bottles 6 NIL Schedule III- 9% 24 2201 Waters, including natural or artificial mineral waters and aerated waters. not containing added sugar or other sweetening matter nor flavoured other than Drinking water packed in 20 litres bottles 9 NIL Combined rate (SGST& CGST)/IGST is 12% and 18% respectively 3. Under GST, several services and goods were exempted by issuing notifications under the CGST Act and SGST Act. Notification No. 02/2017-C.T.-(Rate), dt. 28-06-2017 was issued to notify the exemptions on supply of goods under CGST Act. Entry relating to water was notified at Serial No. 99 of the Notification. The same is reproduced below: SI.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (%) Condition (1) (2) (3) (4) (5) 99 2201....
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....der Entry 24 of Schedule-3 of Notification No. 1/2017-C.T.-(Rate) dtd.28.06.2017 as amended by Notification No. 06/2018 and C.T. -(Rate) did. 25.01.2018. Additional Applicant's Submission (MAHAGENCO) on 13.01.2021 The Nagpur Waste Water Management Pvt. Ltd. (NWWMPL) has filed an application for advance ruling vide application reference no. AD271220014385j filed on 21/12/2020 to get clarification about taxability of tertiary treated water supplied by them to Maharashtra state Power Generation Company Limited (Mahagenco). In this reference, it is to stale that, the tertiary treated water received by Mahagenco from =NWWMPL is not completely fit and usable for the desired purpose of Mahagenco Chemically, sewage water consists of water and various soluble and insoluble organic and inorganic matters. Tertiary treatment of such sewage water neither removes all the impurities nor purify the water completely. Tertiary treated sewage water is not a purest form of waive for Mahagenco's use and it still contains impurities like Hardness. Alkalinity. Bacteria, viruses. TSS, phosphate, chlorides, silica etc. which may create multiple scaling and corrosion problems in system. Hence purif....
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.... or discharged to the environment. The treatment removes remaining inorganic compounds and substances such as nitrogen & phosphorus. Sewage treatment generally involves three stages called primary, secondary & tertiary treatment. In short, Tertiary treatment of water is process of purification and applicant is supplying purified water to MAHAGENCO. Hence applicant is not eligible for benefit under Sr. No. 99 of Notification No 02/2017 Central Tax (Rate) Dated 28.06.2017. 3.3.1 In context with second question raised by the applicant, the entry in notification 01/2017 is reproduced below. Schedule Sr. No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (%) Condition (1) (2) (3) (4) (5) (6) Schedule II-6% 46 B 2201 Drinking water packed in 20 litres bottles 6 NIL Schedule III- 9% 24 2201 Waters, including natural or artificial mineral waters and aerated waters. not containing added sugar or other sweetening matter nor flavoured other than Drinking water packed in 20 litres bottles 9 NIL 3.3.2 The above entry in schedule III at Sr. No 24 under tariff Item 2201 @9% includ....
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.... potable but is suitable for Industrial use. The processes carried out by the applicant on sewage water so as to make it suitable to be supplied to Mahagenco for industrial use is mentioned in their application. 5.3.2 We find that the applicant has procured a contract from NMC to treat/purify the sewage that is generated and flows through the three rivers of the city of Nagpur. 5.4 We also find from the submissions made by the applicant that, different processes are carried out on the sewage water collected by the applicant, in order to purify the same for further use. The eventual product generated is purified sewage water and is called as 'Tertiary Treated Water (TTW). Thereafter, the TTW is pumped to Koradi and Khaperkheda power plants of mahageneo through pipelines, where it is used in the cooling towers of the power plants. The applicant has submitted the parameters of Raw Sewage inlet and output parameters of TTP Plant in their submissions 5.5 The applicant has raised a specific question asked about such 'treated water' which is the forward supply of the applicant. We find that, 'water' is covered under Chapter heading 2201 of GST Tariff. We also find that there are ....
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....at water, other than purified, aerated, mineral, distilled, medicinal, ionic, battery. de-mineralized and water sold in sealed container, only will get exemption, therefore the impugned product being purified sewage water will not be exempted. 5.6.5 The legislation does not expect, such purified water to be allowed for exemption from GST. We feel that the subject product is out of purview of this entry and hence the subject product, is not covered under "water" as prescribed in the schedule entry no. 99 of Notification no. 2/2017-C.T. (Rate) dated 28.6.2017. 5.7.1 The second Entry No. 24 prescribed in Schedule III of Notification No. 1/2017-Central Tax (Rate) dt. 28.06.2017 is reproduced as below: - Sr.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (%) Condition (2) (3) (4) (5) (6) 24 2201 Waters, including natural or artificial mineral waters and aerated waters. not containing added sugar or other sweetening matter nor flavoured 9 NIL 5.72. It is further observed that the said Entry 24 of Schedule II of Notification No. 1/2017 which relates to "Waters" was amended vide Notifications N....
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....Notification No. 01/2017-C.T. (Rate) dated 28.6.2017. as amended, uses the word "Waters" including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured other than Drinking water packed in 20 litres bottles". The words 'waters' is used in plural form and further specifically mentions inclusion of different type of waters which are to be covered under the said Sr. No. 24. Thus, it is clear that different type of waters are covered in Entry No. 24, prescribed as "waters" and the same excludes the entries of 'water' covered under Sr.No. 99 of Notification No. 02/2017-C.T. (R) dated 28.06.2021 and Entry 46B of Schedule II of Notification No. 01/2017-C.T. (Rate) dated 28.06.2017. 5.10 In view of the above discussions, we agree with views of applicant and hold that the impugned goods, called as "Tertiary Treated Water", is purified water which is sold to MAHACENCO for its further industrial use and falls under Entry No. 24 of Notification No. 01/2017 mentioned above. 5.12.1 During the course of hearing, applicant has cited different case laws which are on record. Applicant's representative has argued and pointed....