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TMI Blog2022 (7) TMI 910X X X X Extracts X X X X X X X X Extracts X X X X ..... stem, 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-II 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. The product in question viz. Solar DC Cables supplied for Solar Power Generating System, classified under Chapter 85. forms integral part of Solar Power Generating System is eligible for benefit of entry at Sr.No. 234 appearing under Schedule-I to Notification No.01/2017- Integrated Tax (Rate) dated 28.06.2017 and liable to be taxed @ 5% GST upto 30.09.2021. Thereafter the same will be covered under entry Sr.No. 201A appearing under Schedule-II to the Notification No.01/2017-IT (Rate) dated 28.06.2017 amended vide Notification No. 08/2021-I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/54/2018-GST dated 31.12.2018 at Para 11.2 clarified that the notification specifically applies only to the goods falling under chapters 84, 85 and 94 of the Tariff: that therefore, this concession would be available only to such machinery, equipment, etc. which fall under 84, 85 and 94 and used in initial setting up of renewable energy plants and devices including WTEP; that this entry does not cover goods falling under other chapters, say a transport vehicle falling under chapter 87 that may be used for movement of waste to WTEP: that the goods Solar DC Cables, manufactured and designed by them for use as parts in the manufacture by Solar Power Projects falls under Chapter 85 which is covered under Sr.No. 234 of Notification No. 01/2017- Integrated Tax (Rate) and benefit of concessional rate of GST at 5% is admissible to them. The appellant also submitted that they are accredited by International Authority 'TuV' to manufacture as per EN-50618:2014 specs which is exclusively for the products for Solar Power applications. 6. The Gujarat Authority for Advance Ruling (herein after referred to as 'the GAAR'), vide Advance Ruling No. GUJ/GAAR/R/02/2021 dated 20.01.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in commercial contract of sale/purchase, the legal documents placed on supplier/vendors/sub-contractors by main contractor/project developers/project authority is recognized as either 'purchase order' or 'sales order' and this document were already submitted before GAAR. 7.3 As regards to GAAR's observation that purchase order is not a legal document enforceable by law, appellant relied upon Indian Contract Act, 1872 which says that all agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void. The appellant submitted that in present case, the purchase order is placed by the purchaser, with free consent, by both parties to contract, for lawful consideration with a lawful object and expressly accepted by mail confirmation and the same was recorded in Para 7 of ruling of the GAAR. which proves that the purchase order is the legal document enforceable by law. 7.4 The appellant submitted that GAAR. despite holding that appellant's product fulfill both the mandatory conditions that the product/ goods supplied to Solar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ruling given by the GAAR and other material available on record. 9. The main issue to be decided, on the basis of advance ruling sought by the appellant is, whether the benefit of concessional rate of GST in terms of Sr. No. 234 of Schedule-1 to Notification No. 1/2017-IT (Rate) dated 28.06.2017 will be applicable to the DC Cables (Solar DC Cables) designed, manufactured and supplied by the appellant for use as parts in the manufacture of Solar Power Generating System/ Solar Power Projects. 10. To decide the issue we find it necessary' to go through 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% and which reads as under: Sr. No. Chapter/Heading/Suh-Heading/Tariff Item Description of Goods 234 84, 85 or 94 Following renewable energy devices 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmitted by appellant may be treated as contract if they follow conditions prescribed under Indian Contract Act. 1872 i.e. they are made for lawful consideration and with a lawful object and made by the free consent of both parties. The GAAR in Para 7 of ruling has observed that appellant submitted copies of various e-mails exchanged between parties to show that purchase order had been duly accepted by appellant and that emails enclosed a copy of sales order for these transactions to prove that the purchase order was accepted. Further Board in its Circular No. 31/2013-Cus dated 6th August 2013 has held as under: In regard to the scope of the terms deed of contract it is seen that as per Section 10 of the Indian Contract Act, 1872 a valid contract is one that contains the following ingredients:- (i) it is entered into by free consent of parties competent to contract; (ii) there should be lawful consideration; (iii) there should be a lawful object; and (iv) it is not expressly declared to be void (i.e. void under the statute). 3. In view of the aforementioned legal position it is evident that a purchase order that contains all the essential ingredients ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on/concession for their supplies under referred entry no.234. 14. As regards to GAAR's observation that clause 1. SCOPE OF WORK/FACILITIES of purchase order contains some hidden meaning within and there is also likelihood of supply of DC Cables accompanied by services. The appellant submitted that in every sale/purchase contract, elements of packing, freight forwarding and transit insurance are involved before goods arc supplied either at ex-works basis or FOR destination basis and they had not provided any after sale service viz. erection, installation, construction etc in respect of solar power generating system and therefore, the above referred services arc inbuilt and naturally bundled with principal supply of goods and not provided beyond the sale of goods. The appellant also submitted an affidavit dated 26.02.2021 issued by Mundra Solar PV Limited and affidavit dated 25.02.2021 issued by Adani Green Energy Limited, confirming that the purchase orders placed with appellant involve only supply of goods and does not involve any kind of service which can be separately taxed under the CGST Act, 2017. On going through the abovementioned affidavits and appellant's submi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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