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TMI Blog2020 (7) TMI 805X X X X Extracts X X X X X X X X Extracts X X X X ..... t case, CREDA implements various schemes relating to solar energy, wind energy, mini micro hydel, biomass, biogas and solid waste management. Some of the major activities include sour sujla yojna, solar drinking water pumping scheme, saubhagya yojna, solar community irrigation scheme, solar high mast, saur shakti yojna, solar on grid and roof top scheme, solar cold storage scheme, solar highmast, solar water purification, solar electrification of Government Buildings, solar water heating systems, National biogas and manure management programme, solar rural electrication/majaratola scheme, energy conservation programme, energy education park etc. The above schemes are funded by the grants received from the Central Government and State Government. CREDA creates empanelment of systems integrators, vendors and contractors to work as channel partner for implementing various solar photovoltaic/solar thermal applications in market mode in the state. The system integrator shall be the agency for integration and installation of Solar PV/Solar Thermal Systems - The contactors means civil and electrical contractors to be engaged for carrying out various small construction and repair civil wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing questions:- 1. Applicability of GST Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017 regarding GST exemption to an entity registered under section 12-AA of Income Tax Act, 1961 with regard to services provided by CREDA, scrap battery sale and sale of tender forms. 2. Facts of the case:- The appellant CREDA is the nodal agency of the State Government for tapping the renewable sources of energy and for implementation of various project of public interest and for research, development and popularization of non-conventional renewable sources of energy with Central Finance Assistance provided by the Ministry of New and Renewable Energy, Govt. of India, New Delhi. CREDA was registered on 25/05/2001, under the Society's Registration Act, 1973. i. CREDA is also registered under Section 12AA of the Income Tax Act, 1961. ii. Notification No.12/2017-Central Tax (Rate) dated 28th June, 2017, Sr.No.1 provides for exemption from whole of GST on services by an entity registered under Section 12AA of Income-Tax Act, 1961 by way of charitable activities . iii. The Notification supra, stipulates that charitable activities' means / include activiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id supply of goods or services as brought about by the appellant, Chhattisgarh State Renewable Energy Development Agency, Raipur C.G, under their application dated 13-11-2019 are not exempted from the payment of GST under Sr. No. 1 of the Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 and parallel notifications under CGGST and IGST. Hence, the appellant is liable to pay GST on the impugned supply of goods or services. 2.4 The Appellant preferred an appeal on the issue as mentioned in para 2.3 above, before the Appellate Authority for Advance Ruling in Chhattisgarh, Atal Nagar, Raipur. 2.5 As per Section 100 (1) of CGST Act, appeal against the advance ruling can be presented before the Appellate Authority. 3. Contention of the Appellant: a) The Appellant states that it is a Nodal Agency of Government of Chhattisgarh, registered under Section 12AA of the Income Tax Act,1961 and formed for implementing Solar and Renewable Energy Projects in the State having significant impacts on Preservation of environment. As a part of implementing its major projects, it provides allied services as ancillary and necessary, to perform its work more efficiently with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egal position, Analysis and Discussion:- The provisions for implementing the CGST Act and CGGST Act, 2017 are similar. Now we sequentially discuss the provisions that are applicable in the present case. The appellant seeks ruling as regards the exemption of GST as under Notification No.12/2017-Central Tax (Rate), dated 28th June 2017, with regard to services rendered by them, being an entity registered under Section 12AA of the Income Tax Act, 1961 by way of activities claimed to be charitable activities, on the services provided by CREDA like registration fees, supervision/service charges, processing fees, RVE connection charges, processing fees (Sour-Sujila), entry fees to energy park, penalty charges received, Re issuance charges, scrap battery sale sale of tender forms. To have a better perspective of the matter, it is of paramount importance to have a detailed analysis on all the related aspects of the above Notification like entity registered under Section 12AA of the Income Tax Act, 1961, the services / activities under taken by the appellant claimed to be charitable , definition of 'Charitable activities', Memorandum of Association, rules-regulation and activ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (a) To identify small canal heads and drops, in streams and there after generate power through Mini/Micro Hydel projects with a view to augmenting the energy sources of the state and for making power available in the rural areas. (b) To identify, formulate proposals and set up units (including demonstration) of all non-conventional renewable energy devices specifically to encourage, develop and extend the use of- (i) Bio-energy including energy plantations. (ii) Devices for utilizing wind energy. (iii) Devices for utilizing solar, energy including photo-voltaic systems. (iv) Devices for utilizing Geothermal energy. (c) To undertake or sponsor studies on renewable and non-conventional energy generation, distribution and utilization including its environmental effects, socio-economic feasibility, cost benefit analysis and techno-economic feasibility. (d) To formulate and implement a broad based energy conservation programme and a programme for future energy use. (e) To take special steps to train and encourage young scientists and technologists working in the field of energy resources and plan for their proper involvement in the development ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SPV confirming to specifications of MNRE/CREDA) with OEM Contract with the manufacturer. c) For Contractors- The contactors means civil and electrical contractors to be engaged for carrying out various small construction and repair civil works and works of laying of power distribution network at various sites as per requirement of CREDA. 5.5 Analysis and discussion:- (i) On the basis of Notification No.12/2017-Central Tax (Rate), dated-28-06-2017, the appellant desires to know the applicability of GST exemption for the services mentioned below:- a) Registration Fees b) Supervision / Service Charges c) Processing Fees d) RVE CONNECTION Charges e) Processing Fees (Sour-Sujila) f) Entry Fees to Energy Park g) Penalty Charges Received h) RE issuance Charges The appellant also seeks ruling as regards their activities of Scrap battery sale and from sale of tender forms. (ii) The appellant undertakes various schemes in the State of C.G. by way of tender works being granted to system integrators, vendors and contractors. In the above tendering process, CREDA collects registration Fees, Supervision / Service Charges, Processi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion will be available only after the Assessing Officer is satisfied about the genuineness of the activities promised or claimed to be carried on in each financial year relevant to the assessment year and at the provision of law acted upon. (vi) The exemption under Section 12A / 12AA of the Income Tax Act, 1961 does not cover all incomes or activities of the appellant. The exemption under said provisions are admissible based on the nature of activity and source of such incomes. Hence, exemption under CGST Act, 2017 on income is admissible only if the same is towards any charitable activity. (vii) As discussed in the preceding para, it is observed that vide clause (r) of para 2 of the said Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, the expression charitable activities has been defined as follows:- (r) charitable activities means activities relating to - (i) public health by way of ,- (A) care or counselling of (I) terminally ill persons or persons with severe physical or mental disability, (II) persons afflicted with HIV or AIDS, (III) persons addicted to a dependence-forming substance such as narcotics drugs or alcohol; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sujla yojna, solar drinking water pumping scheme, saubhagya yojna, solar community irrigation scheme, solar high mast, saur shakti yojna, solar on grid and roof top scheme, solar cold storage scheme, solar highmast, solar water purification, solar electrification of Government Buildings, solar water heating systems, National biogas and manure management programme, solar rural electrication/majaratola scheme, energy conservation programme, energy education park etc. The above schemes are funded by the grants received from the Central Government and State Government. CREDA creates empanelment of systems integrators, vendors and contractors to work as channel partner for implementing various solar photovoltaic/solar thermal applications in market mode in the state. The system integrator shall be the agency for integration and installation of Solar PV/Solar Thermal Systems. Their scope of work will be marketing, survey, preparation of DPR / formulation of proposal, designing, installation, commissioning of these systems and comprehensive operation and maintenance of these systems for five years as per guidelines of CREDA. The vendors will be the registered suppliers for supply of Batte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d facilities at the specified target locations. (xiii) In view of the above discussion and analysis we come to the considered conclusion that the aforesaid activities of the appellant cannot he treated as charitable activities as envisaged under the statute, as the above mentioned fees/ charges are being collected from the channel partners/ contractors/consumers as a consideration for tender work/supply of services, provided to them. Hence, the said supplies being not covered under the definition of charitable activities as envisaged, the impugned services / supply of goods rendered by the appellant are not covered under Sr.no. I of Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017 Having regard to the facts and circumstances of the case and discussions as above. We dispose of the instant appeal filed by M/s NMDC, the Appellant by passing the following order.- ORDER (Under Section 101(1) of the CGST Act, 2017 and Chhattisgarh Goods and Service Tax Act, 2017) No. STC/AAAR/04/2020/5157 Raipur Dated 16-07-2020 The Ruling so sought by the Appellant is accordingly answered as under:- In view of the above, there is no merit in the appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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