9911796707
TMI Blog2024 (6) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... t and disposal charges from the customers along with applicable GST. [b] Zero Liquid Discharge Plant ('ZLD Plant'): The environment laws/regulations permit use of CETP treated effluent in RO plant (referred to as, ZLD plant) to make it suitable for use in industries. The product has commercial value and is supplied at agreed price to industries. The applicant has set up a 25 MLD Zero Liquid Discharge (ZLD) plant. Since the ownership of the water lies with the applicant, it uses the treated effluent of the CETP and carries out a process of ultra-filtration (UF)/ reverse osmosis (RO) to make it reusable water for industrial purposes. The treated effluent generated by CETP passes through various processes to make the waste water useable. Post the treatment/process, the applicant sells the said ZLD treated water (RO) to industrial units for use in their manufacturing process. 3. As per the applicant, the process undertaken in CETP plant is as under: 1 Physico - chemical treatment * Screens * Raw effluent collection sump and pumps * Pre - Sedimentation tank with cascade cooling system * Equalization Tank / Mixers / Pumps * Pre DAF ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eria), excess minerals etc. RO membrane effectively removes excess TDS, heavy metals, excess minerals and chemicals to give safe and useable water; vii. 'Total recovery of permeate from three stages of RO put together shall be 97%. 6. The process of ZLD includes a certain element of de-mineralization process where the minerals in the treated water (RO) are reduced to a certain extent through the process of ultra-filtration and reverse osmosis. The output of the ZLD plant is the ZLD treated water (RO). The process flow of CETP plant and ZLD plant as under: Process flow of GETP's plant 7. Further, the applicant has stated that to constitute a 'supply', following elements are required to be satisfied: * there should be supply of 'goods' and/or 'services'; * supply is for a 'consideration'; * supply is made 'in the course or furtherance of business'; * the activity under consideration does not fall within the ambit of section 7 (2) of the CGST Act, 2017. and on the above basis, the applicant is of the view that a) their activity of supplying ZLD treated water (RO) water to industries is a supply of goods (sale of ZLD treated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sr. No. 24 of Schedule-Ill of notification No. 01/2017-Central Tax (Rate), dated 28-6-2017 as amended - "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 litters bottles)"; or [b] Sr. No. 99 of notification No. 02/2017-Central Tax (Rate), date 28-6-2017 as amended - "Water [other than aerated, mineral, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container]" 15. Personal hearing in the matter was held on 27.2.2024 wherein Ms. Khushboo Kundalia, CA, Shri Hitesh Mundra, CA and Shri Anil Lambaria, appeared on behalf of the applicant and reiterated the facts as stated in the application. 16. The applicant vide their letter dated 4.3.2024, submitted additional submission enclosing the following viz * comparison report of both the samples [marked as Annexure 1] * water analysis report of CETP Inlet [marked as Annexure 2] * water analysis report of RO treated water [marked as Annexure 3]. Discussion and findings 17. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption from payment of GST, while other types of water i.e. aerated, mineral, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container are not covered under entry no. 99 and is liable to payment of applicable GST. 23. We find that the intention of the legislature is to exempt water; that any type of water which is usually consumed/drunk by the public at large is not to be taxed. To meet such an objective, the GST Council has provided exemption under entry No. 99 of notification No. 2/2017-CT(R) to water which is free from all types of impurities and is 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. On the other hand, 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, sold for commercial purpose is kept out of the purview of exemption as provided vide entry No. 99 of the notification. 24. The intention of not levying GST on the supply of drinkin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h impurities, as dissolved salts and colloidal particles, have been removed by one or 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
