Sterling And Wilson Private Limited Vs Joint Commissioner and Others (Andhra Pradesh High Court)
Andhra Pradesh High Court held the supply of the Solar generating Power Station, is a composite supply, it would not amount to a works contract. Accordingly, appeal allowed GST @5% is leviable on the same.
Facts- The petitioner is engaged in the business of setting up of Solar Power Plants and were paying GST @ 5% of its turnover. As the rate of GST on the inputs, obtained by the petitioner, was higher than the GST rate of finished goods, the petitioner, invoking the provisions of Section 54 of the A.P. Goods and Services Tax Act, 2017, claimed refund of a sum of Rs.8,65,63,538/-, for the period January, 2018 to March, 2018.
However, the Assessing Authority issued a show cause notice, dated 17.09.2019, proposing to assess the turnover of the petitioner @ 18%, on the ground that the transactions undertaken by the petitioner are Works Contract, as defined u/s. 2(119) of the GST Act. Assessing Authority assessed the turnover of the petitioner @18% and raised a tax demand for Rs.63,00,19,512/- and a penalty of Rs.63,00,19,512/-.
1st respondent rejected the appeal of the assessee. Being aggrieved, the present petition is filed.
