In Re: M/s. Eapro Global Limited
GST
2018 (9) TMI 1526 – AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND – 2018 (17) G. S. T. L. 677 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND – AAR
Dated:- 28-8-2018
AAR No. 07/2018-19 In Application No. 05/2018-19
GST
SHRI VIPIN CHANDRA AND SHRI AMIT GUPTA MEMBER
Present for the Applicant: Shri Mohit Chaudhary Accountant
Present for the Jurisdictional Officer: None
Note : Under Section. 100(1) of the Uttarakhand Goods and Services Tax Act, 2017, an appeal against this ruling lies before the appellate authority for advance ruling constituted under section-99 of the Uttarakhand Goods and Services Tax Act, 2017, within a period of 30 days from the date of service of this order.
RULING
1. This is an application under Sub-Section (1) of Section 97 of the CGST/SGST Act, 2017 (herein after referred to as Act) and the rules made thereunder filed by M/s. Eapro Global Ltd, Khasra No. 103 & 104, Salempur Rajputana I
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subsection (2) of Section 97 of the CGST/ SGST Act, 2017 advance ruling can be sought by an applicant in respect of :
(a) Classification of any goods or services or both
(b) Applicability of a notification issued under the provisions of his Act,
(c) Determination of time and value of supply of goods or services or both,
(d) Admissibility of input tax credit of tax paid or deemed to have been paid
(e) Determination of the liability to pay tax on any goods or services or both
(f) Whether the applicant is required to be registered
(g) Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both within the meaning of that term
4. In the present case applicant has sought advance ruling on applicability of GST rate on supply of goods and their classification thereof. Thus, in terms of said Section 97(2)(a) & (e) of CGST/SGST Act, 2017, the present application is hereby admitted.
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documents submitted by the applicant we find that applicant is registered in Uttarakhand with GSTIN bearing no. O5AADCE1852G1ZZ. Before proceeding, we have to first know about the “Solar Power Generating System”. We find that there are four main components to a solar power generating system as under:
(i) Solar panels: The main part of a solar power generating system is the solar panel. Solar panels contain solar cells. Solar cells, sometimes called photovoltaic cells, convert the energy the sun into electricity.
(ii) Inverters : The electricity produced in a solar panel is DC. Electricity we get from the grid supply is AC. So it is required to install an inverter to convert DC of solar system to AC of same level as grid supply. In off grid system the inverter is directly connected across the battery terminals so that DC coming from the batteries is first converted to AC then fed to the equipment. In grid tie system the solar panel is directly connected to inverter and this inverter
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enerating System” as a whole and can be called as 'composite supply or mix supply' & what will be the rate of GST on such supply. To appreciate the law position in this regard we reproduce the relevant portion of the Act as under:
(i) Section 2(30) of the Act ibid “composite supply” means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply;
(ii) Section 2(74) of the Act ibid “mixed supply” means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply.
(iii) Section 2(90) of the Act ibid “principal supply” means the supply of goods or services which constitutes the predominant element of a
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lamp
(g) Ocean waves/tidal waves energy devices/plants
(vi) We find that “Solar Power Generating System” has not been defined in GST law. We also find that in erstwhile Central Excise regime, though exemption to said “Solar Power Generating System' was granted vide serial ho. 332 of Notification No. 12/12-CE dated 17.03.2012 but the same has also not been defined in the said regime. The relevant portion Notification No. 12/12-CE dated 17.03.2012 is reproduce as under:
Sl. No.
Chapter or heading or sub-heading or tariff item of the First Schedule
Description of excisable goods
Rate
1
2
3
4
332
Any Chapter
Non-conventional energy devices or systems specified in List 8
Nil
List-8: 1) Flat plate solar Collector (2) Black continuously plated solar selective coating sheets (in cut length or in coil) and fins and tubes (3) Concentrating and pipe type solar collector (4) Solar cooker (6) Solar air heating system (7) Solar low pressure steam system (8) Solar stills and desalinati
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y conclusion we have seek help from various judicial pronouncement in this regard and a few of them related to the case in hand are reproduce as under:
*Rajasthan Electronics & Instruments Ltd. Vs CCE [2005 (180) ELT 0481 (Tri. – Del.)] = 2004 (7) TMI 259 – CESTAT, NEW DELHI
3. The contention of the appellant is that the Dusk Dawn System is an electronic system for street lights comprising of electronic controller and Solar Photovoltaic Module. The street lights are automatically switched off based on the ambient light level which is sensed by the sensors installed therein. The Dusk Dawn System comprises of the SPV module and the penal housing. The contention is that whole system works on the solar energy and it is an energy saving device used for automatic switching off the street lights making proper use of grid power and increasing the life of the lamps by operating the street light from sunset to sunrise. The contention of the appellant is that the Commissioner of Central E
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ting authority is not sustainable. The impugned order is set aside and the appeals are allowed.
*Bhel vs CCE [2008 (223) ELT 0609 (Tri. – Bang.)] = 2007 (10) TMI 165 – CESTAT, BANGALORE
1. The point at issue is whether the 'Solar Inverter Charger for solar lantern' is entitled for the benefit of exemption Notification 5/99-C.E., dated 28-2-99. 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 28-2-99 as amended exempts “nor conventional energy systems” specified in list 4 of the Notification from payment of duty. Since the exemption notification exempts total system and not parts the system, the lower authority held that the inverter charger for solar lantern is not entitled for the benefit of the said notification.
3. We heard both sides. Learned Advocates contended that solar power generat
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r voltaic module
(ii) Solar power generating system
(iii) Solar lantern.
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 It is possible to convert solar energy to electricity with the help of inverter charger manufactured by the appellants. The Dy. General Manager has certified that the inverter merger constitutes solar power generating system as it performs the function of generating the required high frequency AC power from in-light with, the help of SPV module and supplying it to the compact fluorescent lamp of a solar lantern. In view of the above, expert opinion, we hold that e impugned item can be considered as solar power generating system and is entitled for the benefit of the exemption Notification. Therefore, we allow the appeal with consequential relief.
(vii) On going through the afore state
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power generating system (11) Solar photovoltaic module and panel for water pumping and other applications (12) Solar crop drier and system (13) Wind operated electricity generator, its components and parts thereof (14) Water pumping wind mill, wind aero-generator and battery charger (15) Bio-gas plant and bio-gas engine (16) Agricultural, forestry, agro-industrial, industrial, municipal and urban waste conversion device producing energy (17) Equipment for utilising ocean waves energy (18) Solar lantern (19) Ocean thermal energy conversion system (20) Solar photovoltaic cell (21) Parts consumed within the factory of production of such parts for the manufacture of goods specified at S.Nos. 1 to 20 above.
Notifications 5/99-CE dated 28.02.99
Sl. No.
Chapter or heading or sub-heading or tariff item of the First Schedule
Description of excisable goods
Rate
1
2
3
4
265
Any Chapter
Non-conventional energy devices or systems specified in List 4
Nil
List-4: (1) Flat plate solar co
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sion systems (20) Parts consumed within the factory of production of such parts for the manufacture of goods specified at S.Nos. 1 to 19 above (21) Solar photovoltaic cells.
(viii) On going through the Notifications 12/12-CE, 06/2002-CE & 5/99-CE (supra), we find that there is no change in the description of goods viz “Non-conventional energy devices or systems specified in List” in the said notifications and Solar power generating systems in the list appended to said notifications however their entry against serial no. & list nos. appended to said notifications keeps on changing during the relevant period except that there is no material change in the said notifications. Thus we observe that said notifications are similar in character & have the same soul to extend the benefit under Central Excise Law to “solar power generating system” and are identical to the Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017 in as much as the same benefit continued in GST regime also by w
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re all the goods should be taxable @ 5% as “Solar Power Generating System”. This fact also confirm by the hon'ble tribunal (supra). Further in GST Tariff the same has been classified as under:
Chapter/Heading/Sub-heading/Tariff Item
Description of Goods
Unit
GST Rates
Central CGST
State/UT/SGST/UTGST
Inter-State IGST
Compensation Cess
(1)
(2)
(3)
(4)
(5)
(6)
(7)
[84, 85 or 94]
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
u
2.5%
2.5%
5%
Nil
(ix) As regard to the HSN code of “Solar Power Generating System”, we observed that “Solar Power Generating System” is a composite supply
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ply' as discussed above.
9. In view of the above discussion we pass the order as under:
ORDER
(i) Supply of solar inverter, controller, battery and panels would 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 28.06.2017 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 “composite supply”.
(ii) Supply of solar inverter & solar panels together will fall under the definition of “Solar Power Generating System” (if the same are used for said specified purpose) in terms of serial no. 234 of Schedule-I of the Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017 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 “composite supply”.
(iii) The aforesaid findings are applicable for both manufa
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