Page 134 - GSTL_23rd April 2020_Vol 35_Part 4

460 GST LAW TIMES [ Vol. 35
(D) In terms of the proposed arrangement, JSL would procure coal or
any other inputs (hereinafter collectively referred to as ‘inputs’) and
supply the same to the Appellant for the purpose of carrying out the
activity of generation of power. On receipt of the same, Appellant
would undertake certain processes to convert the said inputs into
power. The power generated from the aforesaid process on inputs
will be supplied back to JSL for which the Appellant would be re-
ceiving job work charges as per the rate that would be agreed as per
the Job Work Arrangement. During the whole process under the Job
Work Agreement, the title in the inputs vest with JSL along with the
power generated with the use of such inputs. In addition to power,
fly ash and other resultant products generated at power plant using
the inputs will also vest with JSL and the Appellant will have no
ownership in such resultant products.
The Appellant had approached the Advance Ruling Authority
(AAR) for seeking an advance ruling under Section 95(a) of the
CGST Act, for determination of the applicability of GST on the fol-
lowing issues :
(I) Supply of coal or any other inputs on a job work basis by JSL
to JEL
(II) Supply of power by JEL to JSL
(III) Job work charges payable to JEL by JSL
Order passed by AAR :
(E) The Order dated 5-3-2018 has been passed by AAR holding that the
proposed transaction amounts to manufacture and therefore it
would not qualify as ‘job work’ under GST.
(F) The Impugned Order has not responded on the GST implication in
respect of the coal and other inputs supplied by the JSL to Appellant
on the basis that the transaction pertains to GST liability of JSL and
not of Appellant.
(G) Being aggrieved by the Impugned Order, the Appellant has filed
the appeal before this appellate authority making prayer to set aside
the said impugned order passed by the Advance Ruling Authority
and give further order in the facts and circumstances of the case on
the following grounds -
Relevant Grounds of Appeal incorporated in the appeal memo dated 5-4-2018 in
the context of reconsideration of the subject appeal
Electricity can be generated on job work is a settled law
1. The Appellant submits that it is well settled inter alia in terms of the
below mentioned judgments of the Courts that electricity being intermediate
goods used in the manufacture of final product, can be generated on job work
basis :
 Commissioner of Central Excise, Nagpur v. Indorama Textiles Ltd., 2010
(260) E.L.T. 382 (Bom.)
 Haldia Petrochemicals Ltd v. CCE, Haldid, 2006 (197) E.L.T. 97 (Tri. -
Del.)

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