TaxTMI 
TaxTMI 
2021 (12) TMI 883
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....andampalayam Post Modakurichi (via) Erode 638 104. (hereinafter called the 'Applicant') is registered under the GST Vide GSTIN 33AAECC2175K1ZQ. They have sought Advance Ruling on the following question: Whether the supply of Stator Coil by the Applicant to Coral Manufacturing Works India Private Ltd., will be eligible for the levy of 2.5% CGST in terms of SI. No. 234 in the notification 1-CTR dated 28 June 2017 and 2.5% SGST in terms of the corresponding SGST notification. The Applicant has submitted the copy of application in Form GST ARA 01 and also submitted a copy of Challan evidencing payment of application fees of Rs. 5,000/ each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. 2.1 The Applicant has stated that they have received purchase orders ref: PO/Coral Coil/2021/061 and PO/Coral Coil/2021 / 133 both with amendment dated 18.06.2021 from Coral Manufacturing Works India Private Ltd (GSTIN 33AAICC4 646K1ZT) for the manufacture and supply of stator coils for wind operated electricity generators [WOEG]; that buyer has stated in the PO that the item ordered is for use solely and principally with Enercon WOEG production; that the applicant ....
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.... to delay the proceedings, the applicant was addressed through the Email Address mentioned m the application to seek their willingness to participate in a virtual Personal Hearing in Digital media. The applicant consented and the hearing was held on 22.10.2021. The Authorised representative, Shri. V. Ravindran, Advocate appeared for the hearing and reiterated the submissions made in the application, He further submitted that the applicant receives purchase orders from M/s. Coral Manufacturing works Pvt Ltd only and the subject goods are supplied to the purchaser; The Purchase Orders state that the subject goods are used in the WOEG. The members questioned whether the purchaser is into manufacturing wind mills and what was the question applied for seeking, when the notification is clear in itself. The AR submitted that they wanted to affirm their eligibility for exemption under SI No. 234 of Notification no. 01/2017-CT (Rate) dt. 28.06.2017 and that a clarification on the authority mentioned in para 11.3 of the circular no. 80/54/2018 GSR dt. 21.12.2018; they further stated that they would file a synopsis and relevant circulars for reference. 3.2. Further to the Personal hearing ....
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.... (c) Solar power generator; (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. Explanation:- If the goods specified in this entry are supplied, by a supplier, along with supplies of other goods and services, one of which being a taxable service specified in the ! entry at S. No. 38 of the Table mentioned in the notification No. 11/2017-Central Tax (Rate), dated 28th June, 2017 [G.S.R. 690(E)], the value of supply of goods for the purposes of this entry shall be deemed as seventy per cent, of the gross consideration charged for all such supplies, and the remaining thirty per cent, of the gross consideration charged shall be deemed as value of the said taxable service. ", 5. The issue is as to the documentary evidence to show that the Stator coils are parts for the manufacture of Wind Operated Electricity Generator (WOEG). 6. The purchase order as amended (copies already submitted with application) placed by Coral Man....
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....ted Electricity Generator. Two types of scenario are possible in the given transaction. SCENARIO -I (BILL TO SHIP TO): tax may be levied at 5% (SI.No.234) ENERGON India or Wind Mill Manufacturer <------------------------ | | | | | | | | | | <-------------------------- Order for stator Coil Outward supply Coral Manufacturing Works India (P) Ltd., Order for stator Coil Coral Coil India Private Ltd. Erode (Applicant) SCENARIO - II tax may be levied at 18% HSN code 8503 ENERGON India or Wind Mill Manufacturer <----------------------------- | | | | | <---------------------------- supply Order for stator Coil Coral Manufacturing Works India (P) Ltd., <------------------------- | | | | | <---------------------------- supply Order for stator Coil Coral Coil India Private Ltd. Erode (Applicant) It has been further submitted that another ....
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....P.E2 and the Invoice is to be raised on 'Coral Manufacturing Works Pvt Ltd'. The applicant has further furnished 9 pages of cop\ of 'Generator Supply Agreement' entered into between Enercon Wind Energy Private Limited as buyer and Coral Manufacturing Works India Private Limited as Supplier. From the furnished pages of the agreement, it is seen that Coral Manufacturing Works Pvt Ltd supplies generators for WECs built as per the 'Buyers' Technical Specifications and Quality Assurance Agreement' and M/s. Enercon Wind Energy Private Limited is obligated to purchase certain minimum number of Generators Annually from Coral Manufacturing Works. 7.2 The Applicant in the case at hand has stated that they are manufacturing Stator coils which have utility in all types of Generators. The issue raised is with respect to the Purchase Order received from Coral Manufacturing Works Pvt Ltd wherein it is specified in the PO that these arc ordered for use solely and Principally with Enercon WOEG production. They have further stated in the application, that the PO clearly confirms that Stator Coil is for use in WOEG, but as per Para 1 1.3 of Circular No. 80/54/2018 GST dated 51.12.2018 mandates tha....
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....ants and devices; and that GST being self assessment tax, the taxpayer is to satisfy himself with the requisite document from a buyer such as 'supply contracts'/'Order for WTEP from the concerned authorities' before supplying goods claiming the concession. We find that the applicant has mis read the clarification and is before us considering this Advance Ruling authority as the 'concerned authorities' mentioned in the said circular. The circular clarifies the doubt regarding the Waste to Energy Plants and it is clearly stated in Para 11.3, that the tax being self-assessed, the supplier, before effecting the supply adopting the concessional rate, has to satisfy himself with the requisite' documents from the recipient, such as supply contracts or order for WTEP from the concerned authorities. Therefore, the 'Concerned authority' specified in the said circular is not this Authority, but the buyer of such WTEP As its related parts. However, as the question raised is on the applicability of the entry of the notification, the same is answered. 7.4 It is seen that the entry originally claimed by the applicant is entry no. 234 of Schedule I of Notification No. 01/2017 C.T.(Rate) dated 2....