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TMI Blog2024 (7) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant and the said water is not potable. Hence Entry no. 46 B which pertains to drinking water only, is not applicable to the impugned product. The impugned goods, called as Sewerage Treated Water , is purified water - rate of tax NIL as per Notification No. 02/2017-C.T. (R) dated 28.06.2017 Subject from amended time to time. - SRI. K. RAVI SANKAR, AND SRI. B. LAKSHMI NARAYANA, MEMBER Represented by : M. Ravi Teja, Charted Accountant and K. Malikarjun, Charted Accountant. ORDER (Under sub-section (4) of Section 98 of Central Goods and Services Tax Act, 2017 and sub-section (4) of Section 98 of Andhra Pradesh Goods and Services Tax Act, 2017) 1. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and APGST Act, 2017 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 APGST Act. 2. The present application has been filed u/s 97 of the Central Goods Services Tax Act, 2017 and AP Goods Services Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... einafter referred to as HPCL ) for SUPPLY OF RECYCLED (TREATED) WATER while discharging its duties under Article 243W of the Constitution of India, read with 12th Schedule to the Constitution. The details of which are as following: i. Agreement No 26/GVMC-Bulk Water/2017-18, dated 11-01-2018 for the supply of 12 LIGD of clear water by GVMC from its Raiwada source to HPCL for use at its Visakh Refinery; ii. Agreement No 26/GVMC-Bulk Water/2017-18 dated 11-01-2018 for the supply of 18 LIGD of clear water by GVIMC from its Meghadri Gedda Reservoir to HPCL for use at its Visakh Refinery' and; iii. Agreement No. 27/GVMC-Bulk water/2017-18 dated 11-01-2018 for the supply of 15 LIGD of clear water by GVMC from its Thatipudi Source to HPCL for use of 14 LIGD at its Visakh Refinery and 1 LIGD at its Waltair Park Housing Complex 6. The purpose of undertaking several obligations pertaining to the development of Visakhapatnam as a Smart City Further, vide the G O Rt No 546 dated 26-07-2017 issued by the Municipal Administration Urban Development Department, GoAP, the 'PROJECT' had been transferred from GVMC to GVSCCL for development and further operations. 7. In line with G O Rt No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f yes, The rate of Tax applicable? On Verification of basic information of the applicant, it is observed that the applicant is under State jurisdiction i.e, Siripuram circle, Visakhapatnam Division. Accordingly, the application has been forwarded to the jurisdictional officer and a copy marked to the Central Tax authorities to offer their remarks as per Sec. 98(1) of CGST /APGST Act 2017. In response, remarks are received from the State jurisdictional officer concerned stating that no proceedings lying pending with the issue, for which the advance ruling sought by the applicant. 5. Applicant s Interpretation of Law: The applicant submitted the following legal provisions to advance his arguments; 1. Applicant understands that levy and collection of the CGST is governed by the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act ) and levy and collection of SGST is governed by respective state GST Acts [Andhra Pradesh Goods and Services Tax Act (APGST), 2017 for the state of Andhra Pradesh]. Similarly, levy and collection of IGST are governed by Integrated Goods and Services Act, 2017 (hereinafter referred to as the IGST Act ). Hereinafter, the reference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 C.T. dt.28.06.2017 Notification No.2/2017 C.T.(Rate) dt.28.07.2017, make it clear that the Treated Sewerage Water is not natural water but just water treated to suit the purpose of HPCL is exempt from tax. The applicant is receiving Sewage Water and treating the same to suit the industrial needs. Thus, the water supplied by applicant to HPCL is exempt from tax. 6. The Sewerage water treated by GVSCCL doesn t fit the definition of Purified water as per the the common parlance test for finding the meaning of the term purification , it has been submitted that the term purified water means water for human consumption, which is not the case here. 7. Under Notification No. 12/2017 Central Tax (Kate) dtd. 28.06.2017 supply of certain services is exempt from tax. The entry-3 of the said notification is produced below: - S.No Chapter /Heading/Sub-heading/Tariff item Description of Goods Rate % (1) (2) (3) (4) 3 Chapter 99 Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union Territory or Local Authority or a Government Authority by way of any activity in relation to any funct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reinafter referred to as HPCL ) date:29-03-2019 for SUPPLY OF RECYCLED (TREATED) WATER while discharging its duties under Article 243W of the Constitution of India, read with 12th Schedule to the Constitution. The GVMC and HPCL have executed 3 agreements for the supply of Bulk Water as per the following details: i. Agreement No 25/GVMC-Bulk Water/2017-18, dated 11-01-2018 for the supply of 12 LIGD of clear water by GVMC from its Raiwada source to HPCL for use at its Visakh Refinery; ii. Agreement No 26/GVMC-Bulk Water/2017-18 dated 11-01-2018 for the supply of 18 LIGD of clear water by GVIMC from its Meghadri Gedda Reservoir to HPCL for use at its Visakh Refinery' and; iii. Agreement No. 27/GVMC-Bulk water/2017-18 dated 11-01-2018 for the supply of 15 LIGD of clear water by GVMC from its Thatipudi Source to HPCL for use of 14 LIGD at its Visakh Refinery and 1 LIGD at its Waltair Park Housing Complex. The applicant is total quantity agreed to be supplied by GVMC to HPCL under the aforesaid Agreements is 45 LIGD (20.46 MLD). In terms of these Executed Agreements, GVMC is already supplying 45 LIGD (20.46 MLD) of the clear water to HPCL. However, going forward, once the project Fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess than 60% of the Contracted Quantity of Product in a month For the quantity of Product consumed over and above the Contracted Quantity of Product in a month, HPCL shall be charged for the extra quantity at the same price as the Supply Price of the Product. The Supply Price shall escalate every year on 1s April as per the Whole Sale Price Index (WPI) applicable from the successive year after effective date. The escalation provision for Supply Price of the Product shall be such that at any point of time, the Supply Price of the Product shall not exceed the respective Supply Price of the Clear Water by GVMC applicable at that point of time. The price of the Product at any point of time shall be the with respect to Supply Price of Clear Water. b) Supply by GVMC (Clear Water) The Supply Price of Clear Water to be supplied by GVMC to HPCL shall be. Calculated at the rate of Rs. 60/- per KL or at such rate as may be applicable from time to time. HPCL will be charged for at least for 60% of the Contracted Quantity of Clear Water per month if the Contracted Quantity of Clear Water consumed in a month is less than 60% of Contracted Quantity of Clear Water. HPCL will be charged for actual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... weetening matter nor flavoured 9 On the perusal of above these notification entries, it is found that, Drinking Water packed in 20 liters bottles are liable to tax 12% and the *Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar on other sweetening matter nor flavored are taxable and liable lo tax @ 18% GST In the subject case, the water supplied by the applicant to GVMC is obtained after the treatment to sewage water as submitted by the applicant and the said water is not potable. Hence Entry no. 46 B which pertains to drinking water only, is not applicable to the impugned product. Entry No. 24 of Schedule III of Notification No. 01/2017-CT. (Rate) dated 28.6.2017, as amended, uses the word Waters including natural or artificial mineral waters and aerated waters not containing added sugar or other sweetening matter nor flavored. The words 'waters' is used in plural form and further specifically mentions inclusion of different type of waters which are to be covered under the said St. No. 24. Thus, it is clear that different type of waters are covered in Entry No. 24, prescribed as waters and the same excludes the entries of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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