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TMI Blog2022 (7) TMI 909X X X X Extracts X X X X X X X X Extracts X X X X ..... facturer and supplier of various goods such as Power/EIectric cables, House wire cables, Marine/pressure tight cables and non-pressure tight cables, Solar DC cables, XLPE (HT/LT) cables etc. falling under Chapter Heading 8544 of the Customs Tariff Act and that they received purchase orders from Solar Power Generating Projects such as M/s Adani Green Energy Ltd, Adani's Mundra Solar PV Ltd etc. for supply of "Solar HT XLPE & LT XLPE Cables" for use as parts in the manufacture of Solar Power Generating System. 4. The appellant has raised the following questions for advance ruling in the application for Advance Ruling filed by it. ''Whether the applicability or determination of liability to pay Tax on our said goods at 5% GST rate is legally correct and in order in terms of Schedule of Notification No. 1/2017- Integrated Tax (Rate) or not? " 5. The appellant has submitted that Entry at Sr.No. 234 of Schedule-I of Notification No. 01/2017- Integrated Tax (Rate) dated 28.06.2017 provides that goods, falling under Chapter 84, 85 or 94, if used as Parts for the manufacture of renewable energy devices such as Solar Power Generating System, will attract concessional rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Umbergaon, Valsad, it would not be possible for us to give a decision in the matter for the reasons discussed hereinabove. " 7. Aggrieved by the aforesaid advance ruling, the appellant has filed the present appeal. 7.1 The appellant in the ground of appeal has submitted that the GAAR observed that to avail the benefit entry at Sr.No. 234 of Notification No. 01/2017- Integrated Tax (Rate) appellant has to satisfy two conditions, first, the goods must be covered under Chapter Heading 84, 85 or 94 and second, the goods shall satisfy the description 'renewable energy devices & parts for their manufacture i.e. Solar Power Generating System; GAAR observed that appellant's product indeed covered under Chapter 85 and, after going through the technical write-up submitted by appellant, form an integral part of solar Power Generating System; GAAR, due to unavailability or non-submission of copies of contract/agreement/tender/technical specification, erred in restraining itself to give its decision. 7.2 The appellant stated that they already submitted the original purchase order No. 4500293305 dated 25.12.2018 in original application to GAAR under covering letter dated 16.09.2020 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not provided any after sale service viz. no erection, installation, construction etc. in respect of solar power generating system and therefore, the above referred services are inbuilt and naturally bundled with principal supply of goods and not provided beyond the sale of goods and hence cannot be treated separately. 7.5 The appellant submitted that there is no element of 'works contract service' involved or performed by appellant as sub-contractor to the Solar Power Generating System as the works contract service was rendered by project developer after buying goods from appellant and the appellant sold the goods to project developer on outright arms and length sale basis after manufacturing as per design, specification, engineering, packing, prior sale testing at appellant works and then delivery was given at for destination basis including transportation and transit insurance. Therefor services listed in purchase order are inbuilt and naturally bundled with sale of goods in terms of Sale of Goods Act, 1930 and CGST Act, 2017 and have to be performed in order to manufacture the goods as per the specification provided by buyer. 7.6 The appellant submitted that they alr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Customs Tariff Act, 1975. 10.2 As regards to second condition, we find that the GAAR while discussing, in detail, about Solar Power Generating System at Para 15 of ruling held that XLPE Cables form an integral part of the Solar Power Generating System as without these interconnecting cables, the components like Solar Panels and others cannot generate usable power. Based on the technical write up submitted by appellant before GAAR and before this appellate authority we are in agreement with the findings of the GAAR. Further, there is no departmental appeal against the above findings of GAAR. 11. Further, GAAR observed that to avail the benefit of Entry at Sr.No. 234 of the Notification No. 01/2017-Integrated Tax (Rate) dated 28.06.2017, it is necessary to confirm that XLPE cables are indeed used as parts of Solar Power Generating System. Further in view of Board Circular No. 80/54/2018-GST dated 31.12.2018 appellant has to satisfy himself with the requisite document from the buyer such as supply contract/order from the concerned authorities before supplying goods claiming concession under entry No.234. The GAAR observed that appellant had not submitted any supply contracts or or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted by appellant would amount to a valid contract and hence appellant fulfills the condition prescribed in Board Circular No. 80/54/2018-GST dated 31.12.2018 for availing benefit under entry 234. 13. We refer to Para 11.3 of Circular No. 80/54/2018-GST dated 31.12.2018 which states as under: 11.3 Another related doubt raised is as to how would a supplier satisfy himself that goods falling under Chapter 84, 85 and 94, say a turbine or a boiler, required in a WTEP, would be used in the WTEP. In this context it is clarified that GST is to be self-assessed by a taxpayer. Therefore, he need to satisfy himself with the requisite document from a buyer such as supply contracts/order for WTEP from the concerned authorities before supplying goods claiming concession under said entry 234. On perusal of above para of the circular, it is clearly expressed that (i) GST is self assessed which means if a taxpayer is claiming exemption/concession under any notification issued under GST Act. he has to satisfy himself that he fulfills the mandatory conditions for claiming the same, onus to prove that he is eligible for such exemption/concession lies on that taxpayer, and (ii) the words use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x (Rate) dated 31.12.2018, for deciding value of services and rate of GST thereon, will not be applicable as there is no provision of service supplied by the appellant with respect to Solar Power Generating System. 15. Further we find that the Entry No. 234 appearing under Schedule-I to the Notification No.01/2017-IT (Rate) dated 28.06.2017 which provides applicable rate of GST at 5% on supplies of renewable energy devices & parts for their manufacture viz. Solar power generating system, falling under Chapter 84,85 or 94, was omitted vide Notification No. 8/2021-IT (Rate) dated 30.09.2021. The description of goods covered under Entry No.234 now appears at Entry No.201A under Schedule-11 to the Notification No. 01/2017-IT(Rate) dated 28.06.2017, amended vide Notification No. 8/2021-IT (Rate) dated 30.09.2021 w.e.f. 1.10.2021, which provides for applicable rate of GST at 12%. The description of renewable energy devices & parts for their manufacture viz. 'Solar power generating system' appearing at entry No. 234 of schedule-I now stands amended as 'Solar power generator' under Entry No. 201A of schedule-II. 15.1 Therefore we find that the product in question viz. Sol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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