2021 (12) TMI 883 - AAR - GST

Classification of goods - supply of Stator Coil by the Applicant to Coral Manufacturing Works India Private Ltd.- taxable at 12% or not - HELD THAT - Para 11 of Circular No.80/51/2018 GST dated 31.12.2018, clarifies the applicability of GST on Waste to Energy Plant. It clarifies that the benefit of concessional rate is available to such equipment, machinery, etc which fall under Chapter 84, 85 and 94 and used in the initial setting up of renewable energy plants and devices; and that GST being self assessment tax, the taxpayer is to satisfy himself with the requisite document from a buyer such as supply contracts / Order for WTEP from the concerned authorities before supplying goods claiming the concession. The requisite document from a buyer such as supply contracts / Order for WTEP from the concerned authorities before supplying goods claiming the concession. The applicant has mis read the clarification and is before us considering this Advance Ruling authority as the concerned authorities mentioned in the said circular. The circular clarifies the doubt regarding the Waste to Energy Plants and it is clearly stated in Para 11.3, that the tax being self-assessed, the supplier, before effecting the supply adopting the concessional rate, has to satisfy himself with the requisite documents from the recipient, such as supply contracts or order for WTEP from the concerned authorities. Therefore, the Concerned authority specified in the said circular is not this Authority, but the buyer of such WTEP As its related parts. However, as the question raised is on the applicability of the entry of the notification, the same is answered. In the instant case, the applicant has produced copies of Purchase orders no.PO 61 dt.21.01.2021 and PO 133 dt. 16.02.2021 received from M/s. Coral Manufacturing Works India Pvt Ltd, wherein it has been specified that the purchase orders are for the supply of Form wound coil(Stator coil) HSN 85030090, for Enercon Make, Wind Operated Electricity Generator EP3 E138. Thus, the fact of supply of stator ( oils being meant for manufacture of WOEGs is established - GST being self assessed tax, the applicant should satisfy himself that such goods would be used in the WOEG on the basis of requisite document from a buyer such as supply contracts/orders for WOEG from the recipient before supplying goods claiming concession under said entry 234 (Now 201). Hence the onus of proving that such goods arc being supplied to WOEG is on the supplier of such goods with documentary proof to that extent. The Stator Coils in question falls under CTH 8503 and the supply is made to M/s. Coral Manufacturing Works Private Limited for manufacture of WOEGs and therefore in the instant ease, the rate applicable is 6% CGST as per Sl.No.201A of the Schedule II to Notification no. 01/2017-CT (Rate) dt.28.06.2017 as amended and 6% SGST as per SI. No. 201A of Schedule II to notification M.S.no.62/201 7 dt. 29.06.2017 as amended effective from 30.09.2021.

Summary

Issues Involved:
1. Applicability of GST rate on the supply of Stator Coil.
2. Interpretation of relevant GST notifications and circulars.
3. Documentary evidence required to claim concessional GST rate.

Issue-wise Detailed Analysis:

1. Applicability of GST rate on the supply of Stator Coil:
The applicant, Coral Coil India Private Limited, sought an advance ruling on whether the supply of Stator Coil to Coral Manufacturing Works India Private Ltd. would be eligible for a 2.5% CGST and 2.5% SGST as per SI. No. 234 in the notification 1-CTR dated 28 June 2017. The applicant later modified the question to whether the supply would be eligible for a 6% GST rate as per SI. No. 201A in the Schedule II of the same notification, as amended by Notification No. 8 CTR dated 30 September 2021.

2. Interpretation of relevant GST notifications and circulars:
The applicant referenced Circular No. 80/54/2018 GST dated 31.12.2018, which clarifies that GST is to be self-assessed by the taxpayer. The supplier needs to satisfy himself with the requisite document from the buyer, such as supply contracts/orders for WTEP, before supplying goods claiming concession under the specified entry. The applicant also noted that the stator coils fall under tariff item 85030010 and are parts for the manufacture of Wind Operated Electricity Generators (WOEG).

3. Documentary evidence required to claim concessional GST rate:
The applicant provided purchase orders and a generator supply agreement to demonstrate that the stator coils are for use in WOEG. The State Jurisdictional Authority noted that the product might be used in manufacturing ordinary generators or WOEG, and specified scenarios where different GST rates would apply (5% or 18%). The authority emphasized the need for the supplier to obtain and verify requisite documents from the buyer to claim the concessional rate.

Judgment Summary:
The Authority for Advance Ruling examined the submissions, additional documents, and remarks from the jurisdictional authorities. It was determined that the supply of stator coils to Coral Manufacturing Works Pvt Ltd. for the manufacture of WOEGs qualifies for the 6% CGST and 6% SGST rates as per SI. No. 201A of Schedule II to Notification No. 01/2017-CT (Rate) dated 28.06.2017, as amended. The ruling is subject to the applicant's self-assessment that all such supplies are for the manufacture of generators for renewable energy, based on purchase orders and supply contracts.

Ruling:
The supply of Stator Coil by the Applicant to Coral Manufacturing Works India Private Limited for use in WOEG will be eligible for the levy of 6% CGST and 6% SGST effective from 01.10.2021, subject to self-assessment by the applicant that all such supplies are for the manufacture of generators for renewable energy, based on the purchase orders/supply contracts for each supply.