In re Coral Coil India Private Limited (GST AAR Tamilnadu)
Whether the supply of Stator Coil by the Applicant to M/s. Coral Manufacturing Works India Private Ltd., will be eligible for the levy of 2.5% CGST in terms of Sl. No. 234 in the notification 1-CTR dated 28 June 2017 and 2.5% SGST in terms of the corresponding SGST notification?
The supply of Stator Coil by the Applicant to M/s. Coral Manufacturing Works India private Limited for use in the WOEG will be eligible for the levy of 6% CGST in terms of Sl. No.201 A in the Schedule II in the notification 1-CTR dated 28 June 2017 (as amended) and 6% SGST in terms of corresponding SGST notification with effect from 01.10.2021, subject to the self-assessment of the applicant that all such supplies are for the manufacture of the Generators for Renewable Energy, based on the Purchase Orders/Supply Contracts for (each of such supply.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, TAMILNADU
Any appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act.
Coral Coil India Private Limited, S.F. No.511/3 Coral Avenue Madathupalayam Pirivu, Anandampalayam Post Modakurichi (via) Erode 638 104. (hereinafter called the ‘Applicant’) is registered under the GST Vide GSTIN 33AAECC2175KIZQ. They have sought Advance Ruling on the following question:
Whether the supply of Stator Coil by the Applicant to Coral Manufacturing Works India Private Ltd., will be eligible for the levy of 2.5% CGST in terms of SI. No. 234 in the notification 1-CTR dated 28 June 2017 and 2.5% SGST in terms of the corresponding SGST notification.
The Applicant has submitted the copy of application in Form GST ARA 01 and also submitted a copy of Challan evidencing payment of application fees of Rs. 5,000/ each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017.
2.1 The Applicant has stated that they have received purchase orders ref: PO/Coral Coil/2021/061 and PO/Coral Coil/2021/133 both with amendment dated 18.06.2021 from Coral Manufacturing Works India Private Ltd (GSTN 33AAICC46416FIZT) for the manufacture and supply of stator coils for wind operated electricity generators [WOEG]; that buyer has stated in the PO that the item ordered is for use solely and principally with Enercon WOEG production; that the applicant has a dedicated coil manufacturing facility at the registered location, which caters to all types of customers such as OEMs (original equipment manufacturers) and rewinders all over the world; that the stator coils so manufactured by the applicant have utility in all types of generators. They have submitted further that while clarifying doubts on GST rates, w.r.t. SI. No. 234 in the said GST Notifications the CBIC, vide its circular No.80/54/2018 GST dated 31.12.2018 specifically Observed in para 11.3 as below:
“11.3 Another related doubt raised is as to how would a supplier satisfy himself that goods falling under Chapter 84, 85 and 94, say a turbine or a boiler, required in a WTEP, would be used in the WTEP. In this context it is clarified that GST is to be self-assessed by a taxpayer. Therefore, he needs to satisfy himself with the requisite document from a buyer such as supply contracts/order for WTEP from the concerned authorities before supplying goods claiming concession under said entry 234.”
It has been stated that in the present case, while the PO/Contract clearly confirms that the Stator Coil is for use in WOEG, the above clarification mandates that. the supplier needs to satisfy himself from the concerned authorities. Therefore. the present application for advance ruling is being made by them.
2.2 On the interpretation of law, Applicant has submitted that as per the above circular, for charging the 5% GST in terms of the said Sl.No.234 in the said GST notifications specifying the rates of GST, the applicant has to satisfy himself that the stator coils fall under Chapter 84, 85 and 9,1, and they arc for use solely and principally with WOEG production; that the Stator coils for generators fall in tariff item 85030010; that the impugned supply of stator coil is a part for the manufacture of WOEG is demonstrated by –
(i) The purchase order amendments dated 18.06.2021 from Coral Manufacturing Works India Private Ltd:
(ii) Generator supply agreement dated 171h December 2019 between Enercon Wind energy P Ltd., New Delhi and Coral Manufacturing Works India P Ltd., Villarasampatty.
Therefore, the applicant is of the view that the supply of stator coils to Coral Manufacturing Works against the POs cited, would qualify for the said 5% rate Of levy of the GST.
3.1 Due to the prevailing PANDEMIC situation and in order not to delay the proceedings, the applicant was addressed through the Email Address mentioned in the application to seek their willingness to participate in a virtual Personal Hearing in Digital media. The applicant consented and the hearing was held on 22.10.2021. The Authorised representative, Shri. V. Ravindran, Advocate appeared for the hearing and reiterated the submissions made in the application. He further submitted that the applicant receives purchase orders from M/s. Coral Manufacturing works Pvt Ltd only and the subject goods are supplied to the purchaser; The Purchase Orders state that the subject goods are used in the WOEG. The members questioned whether the purchaser is into manufacturing wind mills and what was. the question applied for seeking, when the notification is clear in itself. The AR submitted that they wanted to affirm their eligibility for exemption under SI No. 234 of notification 1-CTR dated 28 June 2017 and that, a clarification on the authority mentioned in para 11.3 of the circular no. 80/54/2018 GSR dt.21.12.2018; they further stated that they would file a synopsis and relevant circulars for reference.
3.2. Further to the Personal hearing held, they submitted a synopsis along with Purchase orders no.130 61 dt..21.01.2021 and PO-133 dt. 16.02.2021 received from M/s. Coral Manufacturing Works India Pvt Ltd, wherein it has been specified that the purchase orders for supply of Form wound coil (Stator coil) HSN 85030090, for Enercon Make, Wind Operated Electricity Generator. EP3 E138. They hove submitted copy of Generator supply agreement entered into between M/s. Enercon Wind Energy Pvt Ltd and ,M/s. Coral Manufacturing Works India Pvt Ltd (only 9 pages of the agreement). In the synopsis submitted they have stated the following:
1. At the outset, it is submitted that the question, was impacted owing to the amendment to the notification 1-CTR dated 28 June 2017 by which the rate of GST for the item in question was revised from 2.5% 10 6%.
2. To further explain, the above-cited SI. No. 234 in the Schedule I in the notification 1-CTR dated 28 June 2017 stood omitted but verbatim the same entry inserted as Sl. No. 201A in the Schedule II of the same notification and this was through the amendment introduced through Notification No. 8-CTR dated 30 September 2021, which was subsequent to our application for Advance Ruling. In other words, the very same entry is shifted from Schedule I to II.
3. Accordingly, they requested the Hon‘ble Authority to allow to modify their question for Advance Ruling as under, in the place of the one posed in tin application dated 13.08.2021:-
“Whether the supply of Stator Coil by the Applicant to Coral Manufacturing works India Private Ltd will be eligible for the levy of 6% GST in terms of Sl. No. 201A in the Schedule II in the notification 1-CTR dated 28 June 2017 (as amended) and 6% GST in terms of the corresponding SGST notification”.
4. The relevant part of the exemption notification is extracted below for immediate reference: –
notification 1-CTR dated 28 June 2017(As amended)
