In re M/s Mukand Limited (GST AAR Maharashtra)
Whether the “Electric Overhead Traveling Grab Crane (EOT Grab Crane) ” to be supplied by the applicant to the buyer for use in the waste-to-energy project is covered under SI. No 234 of Schedule I of Notification 1/2017 dated 28.06.2018- IGST (Rate) as ‘Renewable energy devices and parts for the manufacture of waste to energy plants/devices’, attracting 5% levy.
EOT Grab Cranes are integral part of the Waste to Energy Plants project for manufacturing and generation of end product of electricity and therefore the EOT Grab Cranes being used in waste to energy plant as per details given in present case clearly fall under serial no. 234 of schedule of notification 1/2017 – Integrated Tax (Rate) and liable to IGST @5%.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING MAHARASHTRA
The Present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as the CGST Act and MGST Act”] by M/s Mukand Limited, the applicant, seeking an advance ruling in respect of the following questions:
Whether the “Electric Overhead Traveling Grab Crane (EOT Grab Crane) ” to be supplied by the applicant to the buyer for use in the waste-to-energy project is covered under SI. No 234 of Schedule I of Notification 1/2017 dated 28.06.2018- IGST (Rate) as ‘Renewable energy devices and parts for the manufacture of waste to energy plants/devices’, attracting 5% levy.
At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the “GST Act”.
02. FACTS AND CONTENTION – AS PER THE APPLICANT
The submissions, as reproduced verbatim, could be seen thus-
Brief Description of Activity carried out by Applicant:
B.1 M/s Mukand Limited, the Applicant herein, is a Public Limited Company incorporated in India and engaged in the manufacture and supply of special and alloy steels and Overhead Traveling Crane (and parts thereof) solution for handling waste for Industrial Captive. The Applicant manufactures crane lifting capacity up to 500 tons.
B.2 The Applicant is a manufacturer of various type of crane for heavy materials handling solutions, providing solutions specifically for Biomass, steel industries, heavy equipment handling, handling cargo at ports, Co-generation, Waste-to-energy etc. Apart from manufacturing, the Applicant also provides aftermarket services to its customers.
B.3 The Applicant enters into agreements with their customers for design, manufacture, and supply of crane and also for commissioning and installation of cranes at the site of the Customers.
B. 4 As a part of Swachh Bharat Mission and to comply with Solid Waste Management Rules 2016. The Andhra Pradesh Government has been promoting generation of power from Municipal Solid Waste (“MSW”). In this context, the Andhra Pradesh Government awarded the project for development of MSW (municipal solid waste) Waste-to-energy pIants in three clusters in Guntur, Vishakhapatnam and Tirupati districts of Andhra Pradesh to JITF Urban Infrastructure Ltd.
For the execution of the projects, the following two companies were incorporated with JITF Urban Infrastructure Ltd, as the promoter:
– Jindal Urban Waste Management (Guntur) Ltd.
– Jindal Urban Waste Management (Vishakhapatnam) Ltd.
B.6 As per the project specification document issued by M/s. Korus Engineering Solutions Pvt. Ltd., the technical consultants for the project implementation, each of the project sites are to comprise of the following facilities:
