2026 (4) TMI 1149

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....icitor General of India, Suresh Kumar Routhu (Sr SC For CBIC), GP For Commercial Tax. ORDER: (PER HON'BLE SRI JUSTICE R. RAGHUNANDANRAO) Heard Sri Avinash Desai, Sri Rishab Prasad learned counsel appearing for the petitioner, the learned Deputy Solicitor General of India, Sri Suresh Kumar Routhu and the learned Government Pleader for Commercial Taxes, appearing for the respondents. 2. The petitioner is in the business of manufacturing and installing Solar Panels and Solar Power Generating Systems. The 2nd respondent initiated proceedings for assessing turnover of the petitioner for the period from March, 2018 to April, 2019. At that stage, the petitioner had approached this Court, by way of this Writ Petition, contending that th....

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....fixing rate of tax, on supply of goods, has been Notification No. 1/2017-Central Tax (Rate), dated 28.06.2017. In this notification, Sl.No.234 provided for a rate of tax on non-conventional power systems. The said entry reads as follows: 234. 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 (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....

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....mesa Renewable Power Private Limited vs. The Assistant Commissioner ST Kavali Circle, Nellore Division and Ors, Kavali Circle, Nellore dated 03.12.2025, 2025:APHC:56076 and M/s. Arka Green Power Private Limited vs. The State of Andhra Pradesh, dated 24.12.2025, 2025:APHC:59797 had held that the installation of a solar power generating system, would be a composite supply of movable goods and services. On the basis of such finding, this Court had held that the rate of tax applicable for such supplies would be 5%, as stipulated in Sl.No.234 of Notification No. 1 of 2017. 9. In a parallel development, a large number of suppliers of goods mentioned in Sl.No.234, has approached the State for relief, inasmuch as the tax component was placing a ....

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....ion which would straitjacket suppliers into paying a tax which was not payable. The petitioner had also raised a second objection, that the said explanation even if applicable, would be applicable only from 01.01.2019 and the major part of the turnover of the petitioner relates to a period prior to 01.01.2019. 11. The 2nd respondent rejected both these contentions and held that a subsequent Circular No. 163/19/2021-GST, dated 06.10.2021, had clarified that the explanation can be extended prior to 01.01.2019. 12. A reading of Circular No. 163/19/2021-GST dated 06.10.2021 would show that the said circular only extended the applicability of the explanation at the option of the tax payer, and not as an absolute retrospective application o....