TaxTMI 
TaxTMI 
2023 (3) TMI 1247
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....es or both, (g) Whether any particular thing done by the applicant with respect to any goods and/or services or both amounts to or results in a supply of goods and/or services or both, within the meaning of that term. 1.3 There is no bar on an applicant from seeking an Advance Ruling in terms of Section 98(2) of CGST Act, 2017 in as much as the questions raised by the applicant are neither pending nor decided in any proceedings in the ease of the applicant under the provisions of CGST/HGST Act, 2017. As per the declaration given by the applicant in form ARA-01 the issue raised by the applicant is neither pending nor decided in any proceeding under any of the provisions of the Act, against the applicant, therefore, he is eligible to seek an Advance Ruling under the above provisions. Besides the applicable fees in the matter has been paid by him so the case is being heard on merits. 2. BRIEF FACTS OF THE CASE:- A M/s M.N Solar Co., ward no. 5, House no. 298, Kot Mohalla, Ganaur Distt. Sonipat (herein after referred to as the applicant) is registered under the Act having state jurisdiction (GSTIN -06BEDPN4222D1ZO). The applicant proposes to be engaged in manufacturing of sola....
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....PPLICANT'S INTERPRETATION OF LAW The entry no 234 of the schedule I of the Notification No. 01/2017-Central Tax (Rate), dated 28-06-2017 provides the rate of GST on renewable energy devices & parts for their manufacture. Relevant extract of the same is reproduced below:- Schedule I - 2.5% S.No. Chapter/Heading/Sub-heading/Tariff item Chapter/Heading/Sub-heading/Tariff item (1) (2) (3) 234 84 or 85 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 (WO EG) (e) Waste to energy plants/devices (f) Solar lantern/solar lamp (g) Ocean waves/tidal waves energy devices/plants In the instant case, the applicant proposes to manufacture Inverter and battery which is used in solar power generating system. It is stated by the applicant that inverter which is itself a renewable entry device and capable of generating and storing solar power. A solar inverter or PV inverter is a type of electrical converter which converts the variable direct current (D....
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.... "The benefit of exemption Notification No. 5/99-C.E., dated 28-2-1999. The contention of the revenue is inverter charger should be classified under Heading No. 80.03 of the C.E. Tariff Act as a component of solar power generating system or solar lantern. The exemption Notification No. 5/99-C.E., dated 28-2-1999 as amended exempts "non-conventional energy systems" specified in list 4 of the Notification from payment of duty. Since the exemption notification exempts total system and not parts of the system, the lower authority held that the inverter charger for solar lantern is not entitled for the benefit of the said notification." We heard both sides. Learned Advocates contended that solar power generating system is also technically known as inverter charger card. Technical experts who headed the Technical Department of the appellants who are a major Public Sector Undertaking have certified that inverter charger card is the power generating system envisaged under the exemption notification. The classification list which was approved by the Jurisdictional Assistant Commissioner on 23-3-1995 also acknowledges that the inverter charger card and. solar power generating syst....
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....orm power supply is maintained. Thus Solar battery is an integral part of solar power generating systems. Accordingly appellant is of the view that solar batteries fall with the entry no 234 of Schedule -1 of the Notification No. 01/2017-CGST(Rate) as part of renewal energy devices. The applicant supplying the solar inverter along with solar battery and solar panel together in package. Here it is pertinent to mention here that solar panel and controller will be procured from the open market and thereafter sold as a composite unit to the consumer and to the dealer as well as solar power generating system. GST was implemented in India with effect from 01.07.2017. There has been a paradigm shift in the levy of indirect taxes with the introduction of GST. Typically, the event of taxation has been shifted from that of manufacture/ sale to the event of 'supply'. The term supply is defined under Section 7 of CGST Act to include all types of transfer, exchange, sale, lease, license etc. The relevant provision of Section 7 of the CGST Act is reproduced below: Section (7) Scope of supply: (1) For the purposes of this Act, the expression supply includes - ....
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....s "Solar Power Generating System" being capable of generating solar power. Every individual component has its own individual functionality. Therefore, the same should qualify as composite supply. Once the supply qualifies as composite supply. The entire transaction shall be changeable at the rate applicable to the principle/main supply which is "Solar Power Generating System" in the present ease. Given this, the applicable tax on the same shall be 12% in terms of entry no. 234 of Schedule -1 of the Notification 1/2017 - Central tax (rate) dated 28.06.2017. It is submitted that the similar question came before the Advance Ruing Authority of Uttarakhand in case of EAPRO GLOBAL LIMITED 2018 (17) G.S.T.L. 677 (A.A.R. - GST) Where in advance ruling authority has held as follow:- "(i) Supply of solar inverter, controller, battery and panels would be covered under "Solar Power Generating System" as a whole in terms of serial No. 234 of Schedule-I of the Notification No. 01/2017-Central Tax (Rate), dated 28-6-2017 when supplied for said purpose and the applicable rate of GST on such supply will be 5% as on today [2.5% CGST + 2.5% SGST] and such supply will be treated as "com....
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....wing:- (a) The firm/taxpayer got registration under the Act on 24.07.2021 and the constitution of the business is proprietorship and the products for which registration has been taken are diode, transistor, electric transformer, accumulator etc. (b) Business is more trading as of now as compared to Manufacturing. The proprietor has informed that they plan to start manufacturing soon and for this, they will also take an Additional Place of Business. (c) Core Business at present: Sale & Purchase in Solar Inverter, PCP Board & Solar panel. (d) Expansion Plan: To manufacture Solar Inverter & Solar Battery. They plan to do Inter-state and Intra State sale in Solar Power Generating System of Entry No. 234 of Schedule I of the Notification 01/2017 of Solar Inverter, Solar Battery, Solar Panely & Solar Controller. They pain to do both Inter State & Intra State Purchase of Raw Materials. (e) Tax liability of Rs. 74,700/- in previous year which has been paid in whole through by ITC and no cash deposited. 6. DISCUSSION AND FINDING 6.1 We have gone through the submissions/explanation made by the applicant and the status report of the jurisdict....
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....d in solar power system instead an uninterrupted uniform power supply is maintained. Solar batteries are CIO rating deep cycle battery designed for connecting with solar charge controllers, inverters for giving power backup. It is designed to be charged from Solar panels in the day from sunlight. The main component of the battery is the lead inside it. Generally, lithium ion batteries can supply more cycles than lead-acid, making them great for delivering ancillary services to the grid. One energy saving trait of lithium ion, which makes it a good option for a solar system, is its high charge and discharge efficiencies. A hybrid solar inverter is the combination of a solar inverter and a battery inverter into a single piece of equipment that can manage power from the solar panels, solar batteries, and the utility grid at the same time. 6.3 In the instant case we are not deciding any wider question but restricting our conclusion to the facts and circumstances which was filed for our consideration in the application. Now we proceed by taking the issue one by one: (a) Whether the supply of solar inverter and battery are covered under entry no. 234 of Schedule -I of the Not....
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....sists of an arrangement of components, including solar panels to absorb and convert sunlight into electricity, a solar inverter to convert the output from direct to alternating current, as well as mounting, cabling and other electrical accessories to set up a working system. It may also use a solar tracking system/controller to improve the system overall performance and include integrated battery". 6.5 The applicant has placed reliance of various case laws passed by various Advance Ruling authorities. We are of the opinion that each case has to be examined individually in the backdrop of several factors. Further, he has also placed reliance on various case laws on the issue passed by the courts of the land related to other acts. We have observed that there is no need to discuss the same in presence of clear provision under GST Law. A solar power plant produces electricity directly from sun by the interaction of sunlight with a solar panel made of semiconductor material. The power provided is direct current (DC) electricity. A solar power plant consists of an array of modules generating DC electricity, an inverter and sometimes battery storage back up. The applicable GST Rate ....