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TMI Blog2018 (9) TMI 1526X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Supply of solar inverter, controller, battery and panels would be covered under “Solar Power Generating System” as a whole when the said goods are supply for the said specified purpose and accordingly as per serial no. 234 of Schedule-I of the Notification No. 01/2017-CentraI Tax (Rate) dated 28.06.2017, the applicable rate of GST on such supply will be 5% as on today [2.5% CGST + 2.5% SGST] - in the present case, the supply of the said items are intended for “Solar Power Generating System”, hence the entire supply would fall under composite supply in as much as “Solar Power Generating System”, is predominant element in composite supply and it takes the character of the principal supply therefore all the goods should be taxable @ 5% as “Solar Power Generating System”. Reliance placed in the CESTAT judgment Rajasthan Electronics & Instruments Ltd. Vs CCE [2004 (7) TMI 259 - CESTAT, NEW DELHI], where it was held that Solar Photovoltaic Module is a Solar Power Generating System. Other parts are only panel housing consisting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred to as Act) and the rules made thereunder filed by M/s. Eapro Global Ltd, Khasra No. 103 104, Salempur Rajputana Industrial Area, Roorkee seeking an advance ruling on following issues: (a) applicability of GST rate on supply of solar inverter (8504), controller (8504), battery (8507) and panels (8541) under Solar Power Generating System (8543) as a whole whether the such supply be called as composite supply or mix supply . (b) supply of solar inverter solar panels together will fall under the definition of Solar Power Generating System or it will be a mix supply and the applicability of GST rate on supply of solar inverter solar panels together. (c) Whether manufacturer or trader will have any significance on the clarification. 2. Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub section (2) of section 97 or sub section (1) of section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. 3. As per the said subsection (2) of Section 97 of the CGST/ SGST Act, 2017 adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 then feeds the grid with same voltage and frequency power. (iii) Controller: This is not desirable to overcharge and under discharge a lead acid battery. Both overcharging and under discharging can badly damage the battery system. To avoid these both situations a controller is required to attach with the system to maintain flow of current to and from the batteries. (iv) Battery: The battery is charged by solar electricity and this battery then feeds a load directly or through an inverter. In this way variation of power quality due to variation of sunlight intens ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices 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 (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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lar Photovoltaic module is a solar power generating system. In spite of this finding the benefit of notification was denied. The contention is that as the whole system is working on the solar power, therefore, they are entitled the benefit of the notification. 5. For ready reference the relevant portion of the Notification No. 6/02 dated 1-3-02 is reproduced below: 237. Non-conventional energy devices/systems specified in List 9. 6. The simple reading of the notification provides exemption to the non-conventional energy devices/system specified in List 9. 7. The adjudicating authority admitted the fact that Solar Photovoltaic Module is a Solar Power Generating System. We find that other parts are only panel housing consisting of controllers and switches. Hence the whole system is a Solar Power Generating System and is entitled for the benefit of notification. Therefore, the denial of benefit of notification by the adjudicating 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 'So ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 stated cases pronounced by the hon ble Tribunal we find that the said judgments arc on the lines of Notifications 06/2002-CE 5/99-CE. Therefore, we have to go through the said notifications to find out whether the same are applicable to case in hand. The relevant portion of the same are reproduce as under: Notifications 06/2002-CE dated 01.3.2002 Sl. No. Chapter or heading or sub-heading or tariff item of the First Schedule Description of excisable goods Rate 1 2 3 4 237 Any Chapter Non-conventional energy devices or systems specified in List 9 Nil List-9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (15) Bio-gas plants and bio-gas engines (16) Agricultural, forestry, agro-industrial, industrial, municipal and urban waste conversion devices producing energy (17) Equipment for utilizing ocean waves energy (18) Solar lantern (19) Ocean thermal energy conversion 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de of Solar Power Generating System , we observed that Solar Power Generating System is a composite supply and the same has not been defined in GST law, therefore HSN code has to be followed in terms of Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017. (B) Supply of solar inverter solar panels together will fall under the definition of Solar Power Generating System or it will be a mix supply and the applicability of GST rate on supply of solar inverter solar panels together. In the cases discussed supra it has been clarified by the hon ble Tribunal that the items which are used in connection with generation of power from sunlight are covered under the definition of Solar Power Generating System . Accordingly solar inverter solar panel used for specified purpose i.e. generation of power from sunlight, will be covered under serial no. 234 of Schedule-I of the Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017, the applicable rate of GST on such supply will be 5% [2.5% CGST + 2.5% SGST]. In this context also, the supply will be treated as composite supply as discussed above. 9. In view of the above discussion we pass the order as und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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