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TMI Blog2022 (12) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... or the period on or after 01.01.2019, as per the explanation in the Notification No.24/2018 dated 31st December, 2018. In view of the Circular No.163/19/2021-GST, dated 06.10.2021, we deem it appropriate to remand the matter back to the 1st respondent/Appellate Authority to consider the issue afresh in terms of the above Circular. Appeal allowed by way of remand. - Hon ble Sri Justice C. Praveen Kumar And Hon ble Sri Justice Dr V.R.K. Krupa Sagar For the Petitioner : Murali Babu Doma For the Respondent : GP For Commercial Tax ORDER: (PER HON BLE SRI JUSTICE C.PRAVEEN KUMAR) 1) The Present Writ Petition came to be filed by the Petitioner challenging the Order-in-Appeal No. ZH3710OD19206, dated 20-10-2020, passed by the 1st Respondent demanding the Petitioner to pay GST amounting to Rs.63,00,19,512/- for the period from November 2017 to September 2018 along with interest and penalties equal to 10% of the tax demanded. 2) The Petitioner is a company engaged as a contractor by various entities for supply, installation, testing and commissioning of Solar Power Generating System. 3) Realizing the importance of regenerative nature and cheap cost o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olar equipment, was for the limited purpose of operation efficiency and does not render the same immovable and, if required, the equipment can be dismantled and reassembled at some other place. Petitioner also contended that merely because part of the activity involves civil works, the total supply cannot be assumed to be works contract service, since the plant is not immovable in nature. The activity rendered is a composite supply consisting of supply of goods, where the predominance is that of goods, thereby the principal supply is deemed to be the supply for levy of GST. However, the First Appellate Authority rejected the contention of the Petitioner and confirmed the GST liability and imposed penalty of 10% of tax amount. 10) Thereafter, the 2nd respondent vide DRC-09 dated 23.10.2020 issued a recovery of tax confirmed in the Appeal though a period of three months is allowed, for initiating the recovery proceedings in terms of Section 78 of APGST Act, 2017. Challenging the same, the present writ petition came to be filed before this Court mainly on the ground that only seven days was given to the petitioner to pay the dues. 11) It is the contention of the Petitioner that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture of the EPC contract executed by the Petitioner is the Development of Solar Park assigned for the said purpose in running condition having a life to generate solar power for a period of 25 years, to design, engineer, civil, land development, inter connection, fixing, testing, etc. In the entire works contract, the supply of solar power panels are one of the components and there are more essential items other than solar panels and hence it cannot be considered that the principle supply is Solar Power Generating System in the composite contract. It was further contended that, from their self-declaration in the stock transfer invoices, the Solar Power Generating System is chargeable at 18%. 17) The Solar Power Generating System supplied with fixtures cannot be moved as a movable item and it is nothing but development of immovable property and contract undoubtedly come under works contract as per the provision of Section 2(119) of the AP GST Act, 2017. 18) Respondents also contend that, the judgments relied upon by Petitioner do not apply to present case and further contended that Asphalt Drum/Hot Mix plants which were subject matter of dispute in those cases cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 22) At this stage, it would be appropriate to extract the relevant portion of the order impugned passed by the 1st respondent appellate authority, which is as under:- In the present case, the contract entered by the appellant is composite supply of works contract as defined at Section 2(119) of CGST Act 2017 and is treated as supply of service in terms of serial no.6, Schedule II of GST Act, 2017. It falls under heading 9954, entry no.(ii) of S.No.3 of the table of notification no.11/2017 Central Tax (Rate), Dated 28th June 2017 as amended from time to time and the applicable rate of tax 18% (9% under Central tax and 9% State tax). Amendments of the GST rate vide notification No.24/2018 Central Tax (Rate) dated:31.12.2018 and notification No.27/2018, Central Tax (Rate) date:31.12.2018, amending earlier notifications No.01/2017, Central tax (Rate) dated:28.06.2017 and notification No.11/2017, Central Tax (Rate) dated:28.06.2017 respectively, which came into force from 01.01.2019, added clarity to the rate of taxation of the Solar Power Plant Projects as such. Against S.No.234 in column 3 of the notification No.24/2018 Central Tax (Rate) dated:31.12.2018 following expl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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