9911796707
TMI Blog2020 (3) TMI 1043X X X X Extracts X X X X X X X X Extracts X X X X ..... arnataka vide GSTIN 29AAACW5652P1ZL. Applicant is engaged in the business of supplying purified water in the following types: a) in unsealed form by filling customer empty cans (i.e., supply of purified water in a can which is being brought by the customer) b) in 20 litre unsealed cans; and c) Through piped network to establishments. 3. The applicant has entered into an agreement (MOU) with local panchayats/ municipalities by signing memorandum of understanding for the supply of purified water to the general public. The relevant terms and conditions of the said agreement are listed below: a) To supply purified water to urban under-sewed people across various metro cities by installing community water treatment plant at economical price. b) CWS shall be designed to treat 21,000/44,000/65,000 litres of water per day using filtration process for removal of physical, chemical impurities and microbial contamination. c) The applicant undertakes the water treatment process through CWS is as under: * Raw water from source (well/pond/bore well/ others) is collected into the raw water tank and is then pumped to CWS for removal of suspended solids, organic matter, chlori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nection or addition" * In the case of Sukhnandan V. Suraj Bali = 1950 (10) TMI 23 - ALLAHABAD HIGH COURT, it was held that the word "and" should be understood in its natural grammatical sense to indicate a conjunctive sense and not a disjunctive sense and cannot be read as "or" 6.3 In light of the above applicant submitted that the word "water sold in sealed container" should be read in conjunction with word "purified, mineral, distilled etc' and it should not be read as a separate sentence/ clause. In other words, "water sold in sealed container* should be understood in the context of purified water also. Therefore, applicant contended that supply of purified water, unless sold in sealed container, should be eligible for exemption under Entry 99 of the Notification. 6.4 In support of this, the applicant placed a reliance on the Circular No. 52/26/2018 dated 09th August 2018 which has clarified the applicability of the aforesaid Notification. The relevant extract of circular no.52/26/2018 dated 09th August 2018 has been reproduced below: In this circular, attention is drawn to the entry at SL No. 99 of notification No. 2/2017-Central Tax (Rate) dated 28th June 2017, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out by the applicant it was observed that applicant has entered into an agreement with local panchayats [municipalities to supply purified water to urban under-served people across various metro cities by installing Community Water System, which is a water treatment plant at economical price. In the process of water treatment, applicant pump the raw water from water sources like well/ pond/bore well/ others and collected in the raw water tank. This raw water is then pumped to CWS for removal of suspended solids, organic matter, chlorine, obnoxious taste and smell. The purified water is further sent to Reverse Osmosis membranes to remove total dissolved solids, bacteria and pathogens and then the same is sent to purified water storage tank. This purified water is supplied to general public in unsealed containers which are brought by the public themselves. Applicant charges Rs. 8/- or such amount as is reasonable for supply of purified water in 20 litres cans. 11. With this in background applicant sought Advance Ruling on "Whether supply of purified water to public in empty unsealed cans is exempt under GST law". 12. The applicant relied upon the entry No. 99 of Notification No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rine, obnoxious taste and smell from raw water and then sent to Reverse Osmosis membranes to remove total dissolved solids, bacteria and pathogens. During this process raw water converted into purified drinking water and this purified drinking water is supplied to the public. 16. The contention of the applicant with reference to SI. No. 99 of the Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017 is that the term 'water sold in sealed container' runs along with the remaining terms of the notification. Further, the term 'and' prior to the term 'water' should be read in a manner that is conjunctive and in such a way that the phrase 'in a sealed container' is applicable for all the types of water enumerated in the entry. The term "water sold in sealed container should be read in conjunction with word "purified, mineral, distilled etc" and it should not be read as a separate sentence/ clause. 17. Honourable Supreme Court in the case of S.G. Glassworks Private Limited vs Collector of Central Ex., Nagpur = 1994 (11) TMI 133 - SUPREME COURT held that the word 'and' by itself may have been susceptible of giving rise to the argument that it was another to be satisfied in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
