The Gujarat Appellate Authority for Advance Ruling (AAAR) has held that Goods and Service (GST) would be applicable on supply of aluminium foil type winding inverter duty transformer and their part.
The appellant Shilchar Technologies Limited, was manufactures of Electronics and Telecom and Power & Distribution Transformers. The Adani Green Energy Limited (AGEL) had been granted an approval by the Ministry of New & Renewable Energy for developing and setting up a Solar Project at Chitrakoot, Uttar Pradesh (UPNEDA Project).
The appellant received an order from AGEL, for supply of ‘Aluminium Foil Type Winding Inverter Duty Transformers'(IDT) falling under Chapter Heading 8504 along with the mandatory spares for Transformers.
The applicant has sought the advanced ruling on the issue Whether supply of Aluminium Foil Type Winding Inverter Duty Transformer classifiable under Chapter Heading 8504 and parts of Transformer supplied / to be supplied for initial setting up of solar project falls under Sr. No. 234 in Schedule-I to Notification No. 01/20017-Central Tax (Rate) dated 28th June, 2017 and liable to Central GST at the rate of 2.5% along with State GST at the rate of 2.5%.
Dhruvank Parikh on behalf of the appellant submitted that since two separate contracts had been issued to them, by the recipient of supply as supply of goods and services and had separately been bided by them explanation inserted at Sr. No 234 to the schedule -l of Notification No. 0ll20l7-Central Tax (Rate) dated 28th June, 2017 as amended, would not be applicable.
The authority of Milind Torawane (SGST) and Vivek (CGST) held that, the appellant was liable for payment of GST on the total value of both the purchase order i’e’ supply of goods and supply of services in terms of Explanation Entry inserted vide Notification No’234 to Notification No. 0l/2017- central Tax (Rate) dated 2g.06.2017 vide No’ 24/2018-central Tax (Rate) dated 31.12.2018 and liable to be taxed, up to 30.09.2021 as 3.5 % GST on goods and 5.4% upon services.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
