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TMI Blog2018 (6) TMI 466X X X X Extracts X X X X X X X X Extracts X X X X ..... st fee under SGST) vide CPIN Number 18013700040367, dated; 12-01-2018, and found the payment paid by the applicant is genuine as per common portal. As the applicant is an unregistered person, the application is not forwarded to any jurisdictional authority. To admit and to pronounce advance ruling on this application, this authority feels it is necessary to hear the applicant. Accordingly a personal hearing fixed on 04th April 2018, requested the applicant to attend with all relevant data. The applicant attended himself before this authority on 04th April, 2018 and made oral submissions on the issue, where advance ruling sought by him. On perusal of application, oral submissions made by the applicant, and read with the provisions of the law, the following are the observations by this authority. 1. The Issues raised by the applicant is as follows., Issue No. 1 Whether supply of solar power plant under 'Turnkey EPC Contract' is supply of 'solar power generating system' under Entry 234 of Schedule I of the Notification No. 1/2017- Integrated Tax (Rate), Entry 234 of Schedule I of the Notification No. 1/2017- Central Tax (Rate) both dated 28 June 2017 and Entry 234 of Schedule I o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with Section 12(2) thereof? The Issues raised by the applicant is fit to pronounce advance ruling as they falls ambit of the Section 97(2) (a), (b) and (c), they are as given under (a) Classification of any goods or services or both; (b) Applicability of a notification issued under the provisions of this Act; (c) Determination of time and value of supply of goods or services or both Further, the applicant being a unregistered person, as per the declaration given by him in Form ARA-01, the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Basing on the above observations, the application is 'admitted', to pronounce advance ruling. As per the submissions given by the applicant In Turnkey EPC Contract, the Applicant is required to undertake all activities, civil or otherwise, to supply the power plant in ready to operate condition. The scope of work typically involves: (i) Civil works like leveling of ground and wall boundary, internal roads, building foundations for mounting of panel mounting structures, digging ditch for underground cabling etc, concrete flooring for inverter/transformer/battery pack, control ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n successful commissioning of the plant with stipulated power generation. F. Cost: a. In the case of Ground Base Solar Project: 20% Civil & Erection & 80% Supply. Roof Top Base Solar Project: 10% Civil & Erection & 90% Supply. For Issue number 2, the statement of facts are as follows... The scope of supply includes: a. Detailed designing of power project b. Procurement and supply at project site i. Solar photovoltaic modules/panels/array ii. Panel mounting structure iii. Solar tracker iv. Meteorological equipment v. Cables vi. Combiner box vii. Solar power conditioning unit viii. Inverter ix. Isolator x. Transformer xi. Switchbox xii. Conductor xiii. Battery xiv. Transmission tower xv. Steel/plastic tubes & pipes xvi. Pre-fabricated shelter xvii. SCADA Software c. Assembly & erection B. Assembly & erection a. Supply of nut, bolts, fasteners and other miscellaneous materials b. Test & Commissioning C. Equipment and components are delivered at project site and stored at the risk of the Applicant D Ownership is transferred on successful commissioning of the plant E. Payment is as per milestone or monthly depending on the % of goods de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment is as per milestone or monthly depending on the % of goods delivered at site. Full payment is released on successful commissioning of the plant with stipulated power generation. For Issue number 5, the statement of facts is as follows.... A. The scope of supply includes: a. Civil works i. leveling of ground ii. Wall boundary iii. internal roads iv. concrete foundations for mounting of panel mounting structures v. digging ditch for underground cabling vi. Concrete flooring for inverter/transformer/battery pack, vii. Control room etc. b. Detailed designing of power project c. Procurement and supply at project site i. Panel mounting structure ii. Solar tracker iii. Meteorological equipment iv. Cables v. Combiner box vi. Solar power conditioning unit vii. Isolator viii. Transformer ix. Switchbox ix. Conductor xi. Battery xii. Transmission tower xiii. Steel/plastic tubes & pipes xiv. Pre-fabricated shelter xv. SCADA Software d. Assembly & erection i. Assembly & erection ii. Supply of nut, bolts, fasteners and other miscellaneous materials e. Test & Commissioning B. Equipment and components are delivered at project site and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Notification, chapter heading shall mean chapter heading as specified under the First Schedule to the Customs Tariff Act, 1975.Chapter Heading 8501 includes Electric motors and generators. As per HSN Explanatory notes to heading 8501, the heading covers photovoltaic generators consisting of panels of photocells combined with other apparatus e.g. storage. (III) As per CGST/APGST Act'2017, section 31 (4) reads "In case of continuous supply of goods, where successive statements of accounts or successive payments are involved, the invoice shall be issued before or at the time each such statement is issued or, as the case may be, each such payment is received". (IV) section 12(2, reads "The time of supply of goods shall be the earlier of the following dates," namely:- (a) the date of issue of invoice by the supplier or the last date on which he is required, under sub-section (1) of section 31, to issue the invoice with respect to the supply; or (b) the date on which the supplier receives the payment with respect to the supply: Provided that where the supplier of taxable goods receives an amount up to one thousand rupees in excess of the amount indicated in the tax invoice, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing : The applicant sought a clarification on the liability of division of contract into two, one is supply of material and other one is erection, commission and there on., in this regard it is opined that, it depends upon the terms and conditions of the agreements as to whether the split of contract is an artificial and colourable device to avoid the legitimate tax or the requirement of the contractee demands separation of contract for better execution. In case the contract is an artificial split, the Clarification for Issue 2 (two) is applicable. In other case the rate of tax applicable for the supply of goods subject to condition of eligibility of being " device and parts" of the solar power generating system attracts 5% rate of tax as per Entry 234 of Schedule I of Notification No 1/2017 -Central tax (Rate), dated 28th June, 2017. And the supply of service attracts at the rate specified thereon in Notification No. 11/2017 -Central tax (Rate). Issue No.4: Whether supply of solar power plant under 'Supply Contract' is supply of 'solar power generating system' under Entry 234 of Schedule I of the Notification No. 1/2017- Integrated Tax (Rate), Entry 234 of Schedule I of the Notif ..... X X X X Extracts X X X X X X X X Extracts X X X X
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