TaxTMI 
TaxTMI 
2024 (5) TMI 1063
X X X X Extracts X X X X
X X X X Extracts X X X X
....ted by the respondent can be considered as 'Solar Power Generating System'. Aggrieved by the said order, the Department filed an appeal before this Tribunal. The stay petition filed by the Department came up for hearing on 04/12/2017 and this Tribunal while considering the stay petition finds that "Sl. No. 332 of the Notification grants the benefit to non-conventional energy devices or system specified in the list. From the list A, we find that Sl. No. 10 of the list covers "solar power generating system." The goods under import which are described as "solar inverter" performs the function of generating electricity when the same is exposed to sunlight, which in our view, falls within the description of "solar power generating system." Hence, we find no reason to interfere with the impugned order which is sustained. Accordingly, appeal filed by the Revenue is dismissed. Stay application also disposed of." 2. Aggrieved by the said order, the Department filed an appeal before the Hon'ble High Court of Kerala on the sole ground that the reasonable opportunity was not extended to the (Departmental Representative) DR since the appeal itself was disposed of while considering the stay pet....
X X X X Extracts X X X X
X X X X Extracts X X X X
....verting the solar energy to electric power. A solar power generating system is defined as "Solar power generating systems absorb sunlight and convert it into electricity that we can use." The impugned product undoubtedly satisfies this definition. A Grid tied solar Inverter converts solar DC power to AC power. DC power coming from a solar panel is converted to AC power, which is used to power appliances and lightings. The impugned product in itself is a solar power generating system. 5.1 Learned counsel also draws our attention to the working of grid connected to solar power system and submitted that the goods imported by them are an integral part of the Solar Power Generating System. The learned counsel further submits that the issue is squarely covered by the judgment of the Hon'ble High Court of Madhya Pradesh in the case of Belectric Photovoltaic India Pvt. Ltd. Vs. Commr. of Commercial Tax reported in 2019 (21) G.S.T.L. 319 (M.P.). 6. We have considered the submissions made by both sides. The question here is whether 'Grid-Tied Solar Inverter' can be considered as "Solar Power Generating System" for claiming the benefit of exemption of Additional Duty under Notification No. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....xed tilt or tracking type) and (3) Solar Inverter. Undoubtedly, the item imported item 'Grid Tied Solar Inverter' is used to convert solar DC power to AC power and forms part of a solar system but cannot be construed to be the Solar System itself. The respondent had imported the product vide Bill of Entry No.6067001 dated 21.07.2016 and claimed exemption from Additional duty of customs under the amended Notification No. 12/2012 which clearly allows parts of the solar system only if condition 2 is satisfied and since, the respondent had not satisfied the condition laid down in the Notification, the question of extending the benefit of the notification did not arise. 6.2 The reliance on the decision in the case of BHEL Vs Commissioner of CE reported in 2008 (223) E.L.T 609 (Tri.-Bang) is also misplaced as it was dealing with an entirely different notification. Also, in that case the Tribunal held that : "In the present case, the appellants have claimed exemption in respect of "inverter charger card" as solar power generating system. The appellants actually manufactured SPV lantern. The above lantern required electricity for its working. It is possible to convert solar energy to el....
X X X X Extracts X X X X
X X X X Extracts X X X X
....horoughly examining the various precedents some of which were cited before us and after giving our anxious consideration, we would be more than justified to conclude and also compelled to hold that every taxing statute including, charging, computation and exemption clause (at the threshold stage) should be interpreted strictly. Further, in case of ambiguity in a charging provisions, the benefit must necessarily go in favour of subject/assessee, but the same is not true for an exemption notification wherein the benefit of ambiguity must be strictly interpreted in favour of the Revenue/State. To sum up, we answer the reference holding as under - (1) Exemption notification should be interpreted strictly; the burden of proving applicability would be on the assessee to show that his case comes within the parameters of the exemption clause or exemption notification. (2) When there is ambiguity in exemption notification which is subject to strict interpretation, the benefit of such ambiguity cannot be claimed by the subject/assessee and it must be interpreted in favour of the revenue. (3) The ratio in Sun Export case (supra) is not correct and all the decisions which took similar ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ctical requirement of 'solar power plant' and, therefore, this was also covered under the exemption. It is in this context that the Madhya Pradesh High Court observed as follows: "18. Even by taking into account the aforesaid judgment, this Court is of the opinion that power generating system includes all components even the grid/goods related to sub-station, without which, the system cannot work. 19. The policy framed by the State Government otherwise will have no meaning. The policy was framed keeping in view global warming and resultant climatic changes and all kinds of incentives have been provided for setting up of solar power based projects in the State of Madhya Pradesh. It is really unfortunate that instead of promoting such projects, all kind of hurdles are being created on the ground of technicalities, on the ground that exemption notification is not clear, as has been done in the present case. Once an exemption has been granted in the matter of Value Added Tax/Entry Tax for setting up solar power-based projects, the exemption has to be given in respect of a complete project, as all the equipment used in the project are integral part of the project and even without one ....