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TMI Blog2023 (1) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... e applicant received the effluent from such textile units for treatment and supply treated water obtained from ETP to the industries which required for their various processes - the effluent received from industries is passed through various processed in CETP and after carrying out due process treated water obtained from CETP which is suitable for Industrial use as per their requirements. The intention of the legislature to exempt the water was very clear that any type of water which is usually consumed/drink by the public at large of this country should not be taxed. To meet such objective GST Council has provided exemption under the Entry No.99 of Not. No. 2/2017-CT (Rate) to Water which is free from all types of impurities supplied in cities and villages across the country either through tap or tanker, water cooler and water tap installed at various places across the country. Whereas aerated, mineral, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container is not eligible for exemption from payment of GST under the said entry. This clearly shows the intention of the legislature that any type of water which are being sold in terms of commercial pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . No. 99 of Notification 02/2017 - Integrated Tax (Rate) dated 28.06.2017. 4. The applicant has submitted that the treated water is water other than aerated, mineral, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container, the only question remain is whether the treated water can be said as purified water. 5. It is submitted by the applicant that the term "purified" is not defined under the CGST Act, 2017, accordingly, referred the dictionary meaning of the term "purified". As per the website Dictionary.com, the term "purify" means:- 1. to make pure; free from anything that debases, pollutes, adulterates, or contaminates; 2. to free from foreign, extraneous, or objectionable elements; As per the Cambridge Dictionary, the term "purify" means:- 1. to remove bad substances from something to make it pure 5.1 Thus, as per the dictionary meaning, the term 'purify' means "to make pure", or "to free from foreign, extraneous, or objectionable elements". Accordingly, the "purified water" means such water which is free from foreign, extraneous, or objectionable elements. 6. It is submitted further that the impugned product, i.e. CETP trea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entry are supplied in the packaged form, i.e., in the sealed container, in order to preserve their characteristics and specificity, while the same is not the case with the impugned product, i.e., CETP treated water, which are supplied through pipelines without any such concerns. Thus, the term "purified", mentioned under the exemption clause of the relevant entry, will definitely not include the CETP treated water. Hence, applicant is of the view that the impugned product, i.e., CETP treated water, is rightfully eligible for exemption under entry at SI. No. 99 of the exemption notification no. 02/2017-C.T. (Rate) dated 28.06.2017. 12. The applicant submits that it has never been the intention of the Government, i.e., either Central Government or State Government, to levy any indirect tax on water of general purposes. Even under the erstwhile indirect tax regime, no tax, whether in the nature of Central Excise or in the nature of VAT, was leviable on the water of general purposes, hence the supply of CETP treated water was not subject to any indirect tax under the erstwhile tax regimes. 13. The applicant further submits that even under the GST regime, Government has clarified its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Question on which Advance Ruling sought: 1. Whether 'Treated Water' obtained from CETP (classifiable under Chapter 2201) will be eligible for exemption from GST by virtue of SI. No. 99 of the Exemption Notification No. 02/2017- Integrated Tax (Rate), dated 28-6-2017 (as amended) as 'Water (other than aerated, mineral, purified, distilled, medical, ionic, battery, demineralized and water sold in sealed container)'? or 2. Whether 'Treated Water' obtained from CETP (classifiable under Chapter 2201) is taxable at 18 per cent by virtue of SI. No. 24 of Schedule - III of Notification No. 01/2017- Integrated Tax (Rate), dated 28-6-2017 (as amended) as 'Waters, including natural or artificial mineral waters, and aerated waters, not containing added sugar or other sweetening matter nor flavoured (other than Drinking water packed in 20 liters bottles)' Personal Hearing: 18. Personal hearing granted on 26-09-22 was attended by Shri Mihir D. Gandhi (C.A.) and he reiterated the submission. The representative of the applicant during the course of Personal Hearing was asked to submit the detail and comparison of process of Sewage Treatment Plant and Common Ef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the wastewater can be separated. After this stage, the water is safe to be released into water bodies. 20.6 If all the stages work perfectly, this treated sewage will not burden the environment and clog our water bodies. Function of Effluent treatment plants (ETP) 21. Effluent treatment plants work in several stages to remove all sorts of impurities from industrial waste water. They can screen out solid waste and dust, disinfect the water and purify it on a molecular level. 21.1 This treated water is safe to be released into water bodies without disrupting the ecological balance. 21.2 In the primary stage of an effluent treatment plant, mostly solid and visible waste is removed. Dust and debris are also removed in the first stage. Screenings are done to separate solid waste from the effluent. 21.3 Coagulants are used to have the contaminants clump together and sink to the bottom of the tank. From there, they can be separated easily. Wastewater is also put in a tank where the growth of bacteria is abundant. The contaminants get broken down by bacteria in that stage. 21.4 The secondary stage of an effluent treatment plant finely cleanses the water. Activated carbons arc use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nit Industrial Waste water at CETP Domestic Sewage at STP PH 6.5-8.0 7-7.5 Total Dissolved Solids Mg/1 2000-400 500-1000 Total Suspended Solids Mg/1 300-500 300-500 COD Mg/1 900-1500 40-600 BOD3 Mg/1 350-450 250-300 Chloride Mg/1 700-800 150-200 Ammonical Nitrogen Mg/1 20-50 <20 Oil & Grease Mg/1 30-50 10-30 FINDINGS: 24. We have considered the submissions made by the Applicant in their application for advance ruling as well as the additional submissions made by the applicant before this authority. We also considered the issue involved, on which advance ruling is sought by the applicant, relevant facts & the applicant's interpretation of law. 25. At the outset we would like to make it clear that the provisions of CGST Act and GGST Act are in pari-materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the GGST Act. 26. The main issue here is to decide whether the treated water obtained from CETP is eligible for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed exemption under the Entry No.99 of Not. No. 2/2017-CT (Rate) to Water which is free from all types of impurities supplied in cities and villages across the country either through tap or tanker, water cooler and water tap installed at various places across the country. Whereas aerated, mineral, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container is not eligible for exemption from payment of GST under the said entry. This clearly shows the intention of the legislature that any type of water which are being sold in terms of commercial purpose have been kept out of the purview of exemption as provided under entry No. 99 of the Notification. 28.4 The legislature has clarified its intention of not levying GST on the supply of drinking water by way of issuance of the CBIC Circular No. 52/26/2018 dated 9th August 2018, wherein it has been clarified that supply of drinking water, for public purposes, if not supplied in sealed containers, is exempted from GST. The relevant para is reproduces as under:- 6.1 Applicability of GST on supply of safe drinking water for public purpose: Representations have been received seeking clarification regarding appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... more process of distillation; chemically pure water. As per Wikipedia, this type of water is water that has been boiled into vapor and condensed back into liquid in a separate container. Impurities in the original water that do not boil below or near the boiling point of water remain in the original container. Thus distilled water is a type of purified water. (iv) Medicinal water: Medicinal waters are natural mineral waters with proven therapeutical effect. Their therapeutical application in treating certain diseases has been identified using strict medical tests and thus officially these waters are allowed to be called 'medicinal waters'. (v) Ionic water: Ionized water is natural water that has been run through an ionizer machine's platinum and titanium plates to exchange some of the titanium and platinum ions with the water, thereby increasing its alkaline nature and the pH level of natural water. This process also helps remove impurities from the water. (vi) Battery water : Battery water, is the clean water used to refill the electrolyte when its levels run low. The water used in battery water is usually distilled water or deionized water. It's never tap wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e view that the treated water obtained from CETP is not eligible for exemption under Sr. No. 99 of Notification No. 12/2017-CT (Rate) dated 28-6-2017. 28.10 We hold that the 'Treated Water' obtained from CETP (classifiable under Chapter 2201) is taxable at 18 per cent by virtue of SI. No. 24 of Schedule - III of Notification No. 01/2017- Integrated Tax (Rate), dated 28-6-2017 (as amended) as 'Waters, including natural or artificial mineral waters, and aerated waters, not containing added sugar or other sweetening matter nor flavoured (other than Drinking water packed in 20 liters bottles)' 28.11 The applicant has relied upon the following Circulars:- (i) Circular No. 52/26/2018 dated 9th August 2018 issued by CBIC in relation to supply of drinking water is not applicable as such applicant water is not a drinking water but it is used in the various industry. (ii) Circular No. 179/11/2022-GST dtd. 03.08.2022 issued by CBIC in relation to purified water obtain from Sewage Treatment Plant. This circular is not tenable in the present case as the applicant treated water is de-mineralised water and obtained from Common Effluent Treatment Plant where as circular has c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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