9911796707
TMI Blog2024 (6) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... ls and chemicals and is virtually free from ail types of toxic materials. This treated water is used in various industries for their manufacturing related process. Further, looking to the presence of miniscule amount of minerals in the water so obtained after treatment from ZLD, we find that it is covered under 'demineralized water'. Hence, the treated water obtained from ZLD is not eligible for exemption under Sr. No. 99 of notification No. 2/2017-CT(R) dated 28.6.2017. The 'treated water' obtained after undergoing the process through CETP thereafter through ZLD plant, is classifiable under Chapter 2201, and is taxable @ 18% by virtue of Sr. No. 24 of Schedule-III of notification No. 01/2017-CT(R) 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 litters bottles'. - MILIND KAVATKAR and AMIT KUMAR MISHRA, MEMBER Present for the Applicant : Shri Hitesh Mundra (CA) Khushboo Kundalia (CA) Shri Anil Lamboria Brief facts: M/s Gujarat Eco Textile Park Limited (for short - 'applicant') havin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e second step is the three stage RO system. The effluent is converted into reusable water ie, 'treated water (RO)' at this stage and the same is sold to the industry/members for their industrial use. The technicalities of the ZLD process are defined as under: A. ULTRA FILTRATION i. Treated effluent from disc filter is sent to ultra-filtration feed tank. Necessary ultrafiltration feed pump is provided into tank: ii. Zee-Weed membranes are used for the ultra-filtration process. It utilizes Outside-In flow, through a hollow-fiber membrane that has nominal and absolute pore sizes of 0.02 and 0.1 microns respectively. Some pore size excludes particulate matters and some viruses by a combination of adsorption onto the solids in the process tank and by direct size exclusion: iii. The membranes operate under pressure from a feed pump. Treated water (RO) is pumped through membrane pores and enters the inside of the hollow fibers. Water then flows to the treated water (RO) storage lank (or distribution system). During back pulsing, air is introduced at the bottom of the membrane modules to create turbulence along the membrane surface. Rising air bubbles scour and clean the outside of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubject to GST at the rale of 9% CGST + 9% SGST; that it will not be covered under the entry No. 99 of notification No. 2/2017-CT (R) dated 28.06.2017, as amended. 9. It is the applicant's case, that their activity, is treatment of the water obtained from CETP plant which further undergoes the process of ultrafiltration and reverse osmosis (UF/RO) in the ZLD plant. 10. The process of ultra filtration and reverse osmosis as mentioned in paras above, is carried out at the CETP plant and ZLD plant, including the process of ultra-filtration and reverse osmosis. Therefore, as per the applicant, the resulting supply of ZLD treated water (RO) may get covered as demineralized water. 11. The applicant further states that as the de-mineralized water is excluded from the exemption notification, it continues to be covered at Sr. No. 24 of Schedule-Ill of notification No. 01/2017-CT(R) dated 28.06.2017, as amended and is subject to GST. 12. The applicant further relies on the ruling of GAAR in the case of M/s. Palsana Enviro Protection Ltd GUJ/GAAR/R/2022/47 dated 30.12.2022 and the ruling of AAR, Tamil Nadu, in case of M/s. Kasipalayam Common Effluent Treatment Plant (P) Ltd 23/AAR/2021 dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter undergoing the process of ultrafiltration and reverse osmosis, would fall under paragraph 14(a) or (b), supra. 20. At the cost of repetition, we find that the applicant has established a CETP for collection, treatment disposal of wastewater (effluent) generated from the industries. The CETP treated effluent goes through ultra-filtration process and reverse osmosis process in the ZLD plant. The applicant has stated that the effluent received from industries after having undergone process in CETP and the process of ultrafiltration and reverse osmosis in ZLD plant, is then suitable for Industrial use. Now moving on to the question raised, it would be prudent to reproduce the relevant entries of the notifications. The relevant extract of entry No. 24 of schedule-III of notification No. 1/2017-CT (R) dated 28.6.2017 is as under: Sr. No. Chapter /Heading /Sub-heading /Tariff item Description of Goods 24. 2201 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] 21. Further, entry no. 99 of notification No. 2/2017-CT (R) dated 28.6.2017. as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and water sold in sealed container falling under HS code 2201 attracts NIL rate of GST. 6.3 Accordingly, supply of water, other than those excluded from S. No. 99 of notification No. 2/2017-Central Tax (Rate) dated 28.06.2017, would attract GST at NIL rate. Therefore, it is clarified that supply of drinking water for public purposes, if it is not supplied in a sealed container, is exempt from GST. 25. The question therefore, that arises is whether ZLD treated water (RO) would be covered under the category of aerated, mineral, distilled, medicinal, ionic, battery, de-mineralized water. To decide the category of such treated water, it would be prudent to discuss the types of water mentioned in the entry No. 99. Since the types of water is not defined under CGST/ SGST Act, we therefore, take recourse to the definitions provided in various dictionary and Wikipedia, viz (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 co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not being repeated for the sake of brevity. 27. The applicant vide his additional submission dated 4.3.2024, as mentioned supra, has provided a water analysis report of RO treated water [Annexure 3], which is reproduced below viz Images not produced On going through the report and in view of the aforementioned findings, it can be concluded that after undergoing the process as mentioned supra, the water obtained from CETP, which has further undergone the process of ultra-filtration and reverse osmosis in the ZLD plant, has micro amount of dissolved minerals and chemicals and is virtually free from ail types of toxic materials. This treated water is used in various industries for their manufacturing related process. Further, looking to the presence of miniscule amount of minerals in the water so obtained after treatment from ZLD, we find that it is covered under 'demineralized water'. Hence, we are of the view that the treated water obtained from ZLD is not eligible for exemption under Sr. No. 99 of notification No. 2/2017-CT(R) dated 28.6.2017. 28. In view of the foregoing, we hold that the 'treated water' obtained after undergoing the process through CETP thereaft ..... X X X X Extracts X X X X X X X X Extracts X X X X
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