In re Triveni Turbines Limited (GST AAR Karnataka)
Whether the turbine generator set to be supplied by the applicant to the buyer for use in waste-to-energy project is covered under Sl.No.234 of Schedule I of Notification 1/2017 – IGST (Rate) dated 28.06.2017 as ‘Renewable energy devices and parts for the manufacture of waste to energy plants/ devices, attracting 5% levy?’
A turbine is a rotary mechanical device that extracts energy from a fluid flow and converts it into useful wrork. A steam turbine is a device that extracts thermal energy from pressurized steam and uses it to do mechanical work on a rotating output shaft. Therefore a Turbine” is not a device that converts waste to energy. In fact in the instant case the waste is used to generate steam and the steam runs the turbine to generate electric power. Turbine itself does not work on waste but converts steam into energy. The conversion of waste into energy is done, only at the stage of combustion. The concessional rate of 5% of IGST is available to only such devices which convert waste into energy but not for the devices that converts energy from one form to the other form.
In view of the above, we are of the opinion that turbine is not a renewable energy device because the turbine at no stage acquires the nature of a device which converts waste to energy. The waste has already been converted into heat energy through the process of the burning/combustion which in turn is utilized to convert water into steam and the said steam runs the turbine to generate electric power. The turbine runs on steam irrespective of whether the steam is obtained by combustion of waste or any other means. Therefore the fact that in this particular case the steam was generated out of waste cannot lead to the conclusion that the turbine is a renewable energy device. The same turbine can run equally well on steam generated by use of coal etc., We are, therefore, of the view that turbine in question will not qualify to be covered under serial number 234 of Notification No. 1/2017-Integrated Tax(Rate) dated 28.06.2017.
