In re Nagpur Waste Water Management Pvt. Ltd. (GST AAR Maharashtra)
It is observed that the applicant has processed the sewage water which contains various kinds of organic and inorganic impurities like sand. Silt, clay, chemicals, organisms, etc. The sewage water Cannot be used, in any way, in its original form. Sewage water can be used only after it is purified and even the purified sewage water is not used for drinking, as submitted by the applicant. It is however found to have industrial uses. Such a sewage water is purified by applying different processes in the STP plant as mentioned by the applicant. Thereafter, such obtained water is called as purified water and is sold to the ‘MAHAGENCO’ for their industrial use. It is not used as potable or drinking water.
As per the parameters tested by the applicant, the properties of processed water generated from the sewage is different than the properties of the original sewage water received in the STP plant. Therefore in our view. Tertiary Treated Water is purified sewage water and since it is purified water, the same will not fall under Sr. No, 99 of Notification 02/2017-C.T. (Rale) dated 28.06.2017. Since the said entry at Sr. No. 99 mentions that water, other than purified, aerated, mineral, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container, only will get exemption, therefore the impugned product being purified sewage water will not be exempted.
The legislation does not expect, such purified water to be allowed for exemption from GST. We feel that the subject product is out of purview of this entry and hence the subject product, is not covered under “water” as prescribed in the schedule entry no. 99 of Notification 02/2017-C.T. (Rale) dated 28.06.2017.
In the subject case, the water supplied by the applicant to mahagenco 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.
The Dictionary meaning of Purification is “the removal of contaminants from something.” Thus, Purified water means water on which any process has been carried out for removal of contaminants for making it fit for use. As per the applicant’s submissions, it is clear that various contaminants are removed from the sewage water, thus purifying it to make purified sewage water useful for Industrial purpose. As per the contention of applicant ‘Tertiary Treated Water’ is not potable but it can be used for Industrial use. It is also submitted that the applicant is of the opinion that the supply of TTW by them to Mahagenco is taxable We do not find any reasons not to agree with the applicant’s views. We are of the firm opinion that, the TTW supplied by the applicant is “purified Water” and is covered Entry No.24 of Notification No. 01/2017-C.T. (Rate) dated 28.6.2017.
In view of the above discussions, we agree with views of applicant and hold that the impugned goods, called as “Tertiary Treated Water”, is purified water which is sold to MAHACENCO for its further industrial use and falls under Entry No. 24 of Notification No. 01/2017-C.T. (Rate) dated 28.6.2017. mentioned above.
Read AAAR Order : Tertiary Treated Water eligible for exemption under Notification No. 02/2017-C.T. (Rate)
