TaxTMI 
TaxTMI 
2022 (7) TMI 910
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....facturer and supplier of various goods such as Power/Electric cables, House wire cables, Marine/pressure tight cables and non-pressure tight cables, Solar DC cables, XLPE (HT/LT) cables etc. falling under Chapter Heading 8544 of the Customs Tariff Act and that they received purchase orders from Solar Power Generating Projects such as M/s Adani Green Energy Ltd, Adani's Mundra Solar PV Ltd etc. for supply of "Solar DC Cables" for use as parts in the manufacture of Solar Power Generating System. 4. The appellant has raised the following questions for advance ruling in the application for Advance Ruling filed by it. "Whether the applicability or determination of liability to pay Tax on our said goods at 5% GST rate is legally correct and in order in terms of Schedule-I of Notification No. 1/2017- Integrated Tax (Rate) or not? " 5. The appellant has submitted that Entry at Sr.No. 234 of Schedule-I of Notification No. 01/2017- Integrated Tax (Rate) dated 28.06.2017 provides that goods, falling under Chapter 84, 85 or 94, if used as Parts for the manufacture of renewable energy devices such as Solar Power Generating System, will attract concessional rate of 5% of IGST [or 2.5% ea....
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....cision in the matter for the reasons discussed hereinabove." 7. Aggrieved by the aforesaid advance ruling, the appellant has fled the present appeal. 7.1 The appellant in the ground of appeal has submitted that the GAAR observed that to avail the benefit entry at Sr.No. 234 of Notification No. 01/2017- Integrated Tax (Rate) appellant has to satisfy two conditions, first, the goods must be covered under Chapter Heading 84, 85 or 94 and second, the goods shall satisfy the description 'renewable energy devices & parts for their manufacture i.e. Solar Power Generating System; GAAR observed that appellant's product indeed covered under Chapter 85 and, after going through the technical write-up submitted by appellant, form an integral part of Solar Power Generating System; GAAR, due to unavailability or non-submission of copies of contract/agreement/tender/technical specification, erred in restraining itself to give its decision. 7.2 The appellant submitted that in this digital world of paperless economy, demanding documents such as tender/contract/agreement/technical specification which are not readily available or parted with the appellant by Project Authority as the process....
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.... after buying goods from appellant and the appellant sold the goods to project developer on outright arms and length sale basis after manufacturing and then delivery was given at FOR destination basis including transportation and transit insurance. Therefore, services listed at clause 1.1 of 1 "SCOPE OF WORK/FACIEITIES" of purchase order are inbuilt and naturally bundled with sale of goods in terms of Sale of Goods Act, 1930 and CGST Act, 2017. 7.6 The appellant submitted that they already placed on record an "Undertaking/Indemnity/End Use Certificate" before GAAR, confirming by project authority that DC cables will be purchased from appellant on outright purchase basis where no elements of works contract service is provided by appellant. The appellant also submitted an affidavit dated 26.02.2021 issued by Mundra Solar PV Limited and affidavit dated 25.02.2021 issued by Adani Green Energy Limited, confirming that the appellant, in the present case, had supplied only the goods on outright sale basis and had not provided any service to project authority. FINDINGS:- 8. We have carefully gone through and considered the appeal and written submissions filed by the appellant, submissio....
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....ail the benefit of Entry at Sr.No. 234 of the Notification No. 01/2017-Intcgrated Tax (Rate) dated 28.06.2017, it is necessary to confirm that DC cables are indeed used as parts of Solar Power Generating System. Further in view of Board Circular No. 80/54/2018-GST dated 31.12.2018 appellant has to satisfy himself with the requisite document from the buyer such as supply contract/order from the concerned authorities before supplying goods claiming concession under entry No.234. The GAAR observed that appellant had not submitted any supply contracts or orders but submitted only copies of two purchase orders bearing No. 4500328493 dated 03.07.2020 and No. 4500327829 dated 17.06.2020 which is not a legal document. 12. We find that Section 10 of Chapter II of Indian Contract Act, 1872, as referred by appellant, says that "all agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void." The purchase orders submitted by appellant may be treated as contract if they follow conditions prescribed under Indian Contract Act. 1872 i.e. they are made for lawf....
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....the same, onus to prove that he is eligible for such exemption/concession lies on that taxpayer, and (ii) the words used in above para of circular "...he need to satisfy himself with the requisite document from a buyer such as supply contracts/order... " provides examples, using word 'such as', of documents required from buyer, for satisfaction of taxpayer that goods arc indeed used in WTEP. Therefore, we find that meaning of above para cannot be construed to include only 'supply contracts/order' but it will include all such documents which can satisfy the supplier regarding usage of their goods by their buyers. In the present case we find that appellant has received purchase orders No. 4500328493 dated 03.07.2020 from Mundra Solar PV Limited and No.4500327829 dated 17.06.2020 from M/s. Adani Green Energy Ltd., for supply of Solar DC Cables. They have accepted the said purchase orders and as discussed above the said purchase orders arc a valid contract based on which the appellant can claim exemption/concession for their supplies under referred entry no.234. 14. As regards to GAAR's observation that clause "1. SCOPE OF WORK/FACILITIES" of purchase order contain....