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TMI Blog2018 (12) TMI 475X X X X Extracts X X X X X X X X Extracts X X X X ..... t not for the devices that converts energy from one form to the other form. Turbine is not a renewable energy device because the turbine at no stage acquires the nature of a device which converts waste to energy. The waste has already been converted into heat energy’ through the process of the burning/combustion which in turn is utilized to convert water into steam and the said steam runs the turbine to generate electric power. The turbine runs on steam irrespective of whether the steam is obtained by combustion of waste or any other means. Therefore the fact that in this particular case the steam was generated out of waste cannot lead to the conclusion that the turbine is a renewable energy device. The same turbine can run equally well on steam generated by use of coal etc. - turbine in question will not qualify to be covered under serial number 234 of Notification No. 1/2017-lntegrated Tax(Rate) dated 28.06.2017. Ruling:- The Turbine Generator Set to be supplied by the applicant for use in waste to energy project is not covered under Sl.No.234 of Schedule I of Notification No. 1/2017 dated 28.06.2017. - AAR No. KAR ADRG 28/2018 - - - Dated:- 17-11-2018 - SRI. HARISH D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stomers. In the course of such supplies, the applicant uses the Steam Turbines manufactured by them, while other components like condenser, Gear box, alternator, AVR panel, etc. are procured from outside vendors. In some other agreements, the applicant merely supplies the Turbine Generator sets and supervises the erection, commissioning and installation carried out by contractors engaged by the customers. d. As a part of Swachch Bharat Mission and to comply with Solid Waste Management Rules, 2016, the Andhra Pradesh Government has been promoting generation of power from Municipal Solid Waste (MSW). In this context, the Andhra Pradesh Government awarded the project for development of MSW Waste-to-energy plants in three clusters in Guntur, Vishakhapatnam and Tirupati districts of Andhra Pradesh to JITF Urban Infrastructure Ltd. e. For the execution of the projects, the following three companies were incorporated with JITF Urban Infrastructure Ltd., as the promoter: i. Jindal Urban Waste Management (Guntur) Ltd., ii. Jindal Urban Waste Management (Vishakhapatnam) Ltd., iii. Jindal Urban Waste Management (Tirupati) Ltd. f. He states that as per the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence to the application of a particular entry in one of the Schedules to the Notification. In the instant application, the applicant has sought to determine the applicability of Schedule I of the Notification No. 1/2017- integrated tax (Rate) dated 28.06-2017 to the supplies of Turbine Generator to be made by the applicant to waste-to-energy projects and the rate of tax applicable on such supplies. The applicant has, therefore submitted that question on which the present advance ruling is sought fulfils the requirement under section 97(2)(b) of the KGST Act. 5. The applicant submits that the Turbine Generator sets that are to be supplied to the waste-to-energy projects fall under Sl.No. 234 of the Schedule I of Notification No. 1/2017-Integrated Tax (Rate) dated 28.06.2017 (hereinafter called said notification ), as Renewable energy devices and parts for the manufacture of waste to energy plants / devices , attracting 5% levy, for the reasons furnished below. He has submitted that this application on the apprehension that the activity could be considered as a supply of service in the nature of Works Contract attracting GST at the rate of 18% as the customer has awarded the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l waste incineration, energy recovery, or resource recovery plant. Waste-to-energy is renewable because its fuel source - garbage or Municipal Solid Waste - is sustainable and non-depletable. The National Electricity Policy of the Government of India dated 12.02.2005 encourages the setting up of municipal solid waste energy projects in urban areas with a view to reducing environmental pollution apart from generating additional energy . According to the United States Environmental Protection Agency, waste-to-energy is a clean, reliable, renewable source of energy. According to the Waste-to-energy Research and Technology Council, founded by the European Economic Community, the WTE plants have significant environment benefits. Generally, every project contain a series of equipment from the pit where the MSW is dumped to the generator, from where the electricity generated is uploaded to the grid. Each of this equipment form an indispensable part of waste-to-energy conversion process. 9. The detailed project report on Municipal Solid Waste Management for Vishakhapatnam prepared and submitted by Feedback Infra Private Limited in JV with Eco Save Systems Pvt. Ltd in September 2015 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The issue before the CESTAT was the eligibility to a Central Excise Notification 6/2000-CE dated 01.03.2000 [Later under Notification No.6/2002-CE dated 01.03.2002]. The appellant in the case had sought to avail the exemption from Central Excise Duty on steam turbines supplied for use in producing from non-conventional sources. The Central Excise Notification 6/2000-CE dated is extracted as under Sl.No. 251 in the Central Excise Notification 6/2000-CE dtd 01.03.2000 S.No. Chapter or heading No. or sub-heading No. Description of goods Rate under the First Schedule Rate under the Second Schedule Condition No. 251 Any Chapter Non-conventional energy devices / systems specified in List 5 Nil -- -- List 5 included the entry Agricultural, forestry, agro-industrial, industrial, municipal and urban waste conversion devices producing energy The Central Excise Notification 6/2002-CE dated 01.03.2002 is extracted as under Sl.No. 237 in the Central Excise Notificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pit to electricity generator. 13. Therefore, the applicant submits that the rationale of the Hon ble CESTAT in the aforementioned case in the context of Central Excise Notification does not apply to interpret the present notification and therefore that the Turbine Generator set to be supplied by the applicant for use as a part of the Waste to Energy Plant falls under Sl.No.234 of Schedule I of Notification No. 1/ 2017-Integrated Tax (Rate) attracting IGST at the rate of 5%. 14. FINDINGS DISCUSSION: 14.1 We have considered the submissions made by the Applicant their application for advance ruling as well as the submissions made by Sri. Shivadas, Advocate during the personal hearing. We have also considered the issue involved, on which advance ruling is sought by the applicant, relevant facts the applicant s interpretation of law. 14.2 The applicant is into the business of manufacture and supply of steam turbines / solutions, up to 100 MW. They also provide aftermarket services to their customers as well as turbine users of other manufacturers supported by their customer care support, through a network of service centres. 14.3. The Applicant has filed the inst ..... X X X X Extracts X X X X X X X X Extracts X X X X
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