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TMI Blog2022 (12) TMI 1449X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. The treated water obtained from CETP do not cover under the category of 'purified water' then what type of treated water would be i.e. whether cover under the category of aerated, mineral, distilled, medicinal, ionic, battery, de-mineralized water. It can be concluded that after undergoing out all the process treated water obtained from CETP have micro amount of dissolved minerals and chemical and virtually free from all types of toxic materials. This treated water is used in the various industries viz. Pharmaceuticals, chemicals and leather industries for their manufacturing related process. Looking to the presence of small amount of metal and water obtained after treatment from CETP is covered under 'de-mineralize water'. Hence, the treated water obtained from CETP is not eligible for exemption under Sr. No. 99 of Notification No. 12/2017-CT (Rate) dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 treated water, is obtained after carrying out various processes on the waste water. By carrying out the said processes on the waste water, the waste water is made free from various impurities substances, such as suspended particles, grit, clays, pollutants like nitrogen, phosphorus, etc. However, even after carrying out the said physical and biological processes, water coming out from the CETP still not pure Water and hence cannot be termed as purified water. 7. The applicant submits that the aforesaid notion is also supported by the Tamil Nadu AAAR order in the case of M/s. New Tripura Area Development Corporation Limited (ORDER-in-Appeal No. AAAR/17 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licant 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 intention of not levying GST on the supply of general-purpose 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. Thus, by applying the canon of purposive construction , which gives effect to the legislative purpose/intendment, inclined to hold that the impugned product, which can aptly be construed as water of general purpose as discussed earlier, is eligible for exemption under the relevant entry at Sl. No. 99 of the exemption notification No. 02/2017-C.T. (Rate) date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 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 Effluent Treatment Plant to decide the nature and nomenclature of the treated water. The applicant has submitted the function of Sewage Treatment Plant and Effluent Treatment Plant. Also it was specifically asked to submit the Chemical Analysis report of the treated water i.e. water extracted after the due process from ETP of the recognized laboratory but they have not submitted the same. Revenue's Submission: 19. Revenue has neither submitted its comments nor appeared for hearing. Additional Submission 20. The applicant has submitted the function of Sewage Treatment Plant and Effluent Treatment Plant Also submitted the letter of Sr. Env. Eng. Dated 2-11-2022 wherein mentioned the Comparison of composition of chemical of Industrial waste i.e. Effluent received from Textile Units at CETP for treatmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th 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 are used in this stage to capture chemicals and heavy metals. 21.5. Chlorine and ultraviolet rays are frequently used to disinfect the wastewater. Many industry owners prefer to use ultraviolet rays to reduce the use of chlorine. 21.6. If chlorine is used, the wastewater should be pushed through carbon filters to pull out excess amounts from the water. 21.7. After the secondary stage, the water is safe enough to be released into the environment. Reverse osmosis filters might be used to get rid of any molecules that are larger than a water molecule and turn the water into its purest form. 22. The applicant has summarized the function of both STP and ETP as follows: 22.1. An ETP is a plant where the treatment of industrial effluents and waste waters is done. The ETP plants are used widely in industrial sector, for example, pharmaceutical industry, chemical industry to remove the effluents from the bulk drugs while Sewage treatment is the process of removing contaminants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he effluent for Conveyance, Treatment Disposal of waste water generated from the industries. The 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. 27. We find that effluent received from industries is passed through various processes in CETP and after carrying out due process treated water obtained from CETP which is suitable for Industrial use as per their requirements. The applicant has argued that this, water is not purified , therefore is eligible for exemption under Sr. No. 99 of Not. No. 2/2017-CT (Rate) dated 28-6-2017 as amended. To decide the eligibility of such treated water we refer to entry No. 99 of Not. No. 2/2017-CT (Rate) dated 28-6-2017 and is reproduces as under: 28.1. The said entry was amended vide Notification No. 7/2022-Central Tax (Rate) dtd. 13.07.2022, wherein the word purified has been deleted from the types of water mentioned as exception for exemption from payment of GST at Sr. No. 99 and amended entry is as follows: 28.2. We have observed from the above entry that specifically Water' is eligible for exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om GST. 28.5. We find that the applicant has submitted his own that treated water obtained from CETP is not purified water and cannot be used in drinking by the public but supplied to the Industry and can be used by the industries for their process. 28.6. The treated water obtained from CETP do not cover under the category of 'purified water' then what type of treated water would be i.e. whether cover under the category of aerated, mineral, distilled, medicinal, ionic, battery, de-mineralized water. To decide the category of such treated water, we discuss the types of water mentioned in the entry No. 99 one by one. All such types of water have not been defined under CGST/SGST Act, therefore we take recourse to the definitions provided in various dictionary and wikipedia. (i) Aerated water: As per Wikipedia, water to which air is added and this term is applied to carbonated water. As per the definition by Merriam-webster, any water artificially impregnated with a large amount of gas (as carbon dioxide) is called aerated water. (ii) Mineral water: As the name suggest such types of water contains minerals and in day to day life we prefer to drink or use mineral ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot falls under the category of aerated water, mineral water, distilled water, medicinal water, ionic water and battery water. Now, we discuss the applicant impugned product i.e. treated water as under. 28.8. The applicant has submitted that in CETP they screen out solid waste, dust, disinfect the water and purify it on a molecular level. Various Coagulants are used to have the contaminants clumps together and sink it to the bottom of the tank. Further, Waste water is put in a tank where the growth of bacteria is abundant and contaminants get broken down by bacteria. The activated carbons are used to capture chemicals and heavy metals. Chlorine and ultraviolet rays are frequently used to disinfect the waste water. Reverse Osmosis Membranes are used to get rid of any molecules that are larger than a water molecule and turn the water into its purest form. CETP purify the water on molecular level. Activated carbons are used to capture heavy metals and chemicals. Further, chlorine is used to clean the water and by Reverse Osmosis process water is made purify up to a molecular level. Thus, by undergoing the treatment of effluent through all such process in CETP de-mineralized water is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er is the most common form of pure water . The facts of the case and issue are not similar to the applicant case and cannot be applied. 30. We find that Authority for Advance Ruling, Tamilnadu in the case of M/s. Kasipalayam Common Effluent Treatment Plant (P.) Ltd. has given the Ruling as, Classification of goods - Tamil Nadu Goods and Services Tax Act, 2017 - Demineralized Water - Heading No. 2201 - Applicant is a Common Effluent Treatment Plant engaged in collecting, conveying, treating and disposing of effluents from its member dyeing/bleaching units Applicant proposes to purchase raw effluent from member units, treat same and sell treated water, extracted salts, etc. - By process of reverse osmosis reusable water is obtained, which is partly de-mineralized in nature and is sold for industrial process utilization - Whether description of product do not fall into 'Water (other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralised and water sold in sealed container)' given under Sl. No. 99 of Notification No. 02/2017-Central Tax (Rate), dated 28-6-2017 - Held, yes - Whether water recovered, which is de-mineralized water for industri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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