Page 152 - GSTL_23rd April 2020_Vol 35_Part 4

478 GST LAW TIMES [ Vol. 35
They also cited the decision of the Hon’ble High Court of Bombay in the
matter of CCE, Aurangabad v. Endurance Technologies Pvt. Ltd. [2015-TIOL-1371-
HC-MUM-ST] where credit on inputs and input services used by wind mills to
generate energy which is made available to the manufacturer through power
board under the barter system, has been allowed.
70. On perusal of the above submissions including the illustration and
the case law cited hereinabove, it is opined that proposed arrangement under
consideration is satisfying the condition laid down under Section 143(1)(a) of the
CGST Act, 2017 in respect of bringing back of the inputs by the principal i.e. JSL
from the job worker’s premises i.e. JEL, after the completion of the job work.
Thus, the earlier observation in this regard is sought be revised.
71. Thus, in view of the above deliberation, all the observations made
in the impugned AAAR Order dated 2-7-2018 are repealed and the following
ruling in respect of the questions raised by the Appellant is passed :
ORDER
72. We, hereby, hold that the proposed arrangement of supply of coal
or any other inputs by the principal i.e. JSL to the Appellant i.e. JEL for genera-
tion of electricity will be construed as job work. Accordingly, no GST will be lev-
iable on this supply. Finally, the job work charges payable to JEL by JSL will be
subjected to GST in terms of the provisions laid out in Notification No. 11/2017-
C.T. (Rate), dated 28-6-2017 as amended by various subsequent notifications.

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2020 (35) G.S.T.L. 478 (A.A.R. - GST - Kar.)
BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
KARNATAKA
S/Shri Ravi Prasad M.P., Member (SGST) and Mashhood Ur Rehman
Farooqui, Member (CGST)
IN RE : KARNATAKA SOLAR POWER DEVELOPMENT
CORPORATION LTD.

Advance Ruling No. KAR ADRG 10/2020, dated 18-3-2020
Supply - Amount collected by applicant Solar Power Park Developer
(SPPD) from Solar Power Developers (SPDs) towards annual lease rent as well
as Local Area Development (LAD) fund under guidelines, issued by Ministry
of New & Renewable Energy (MNRE), Government of India - Amount collect-
ed towards LAD fund are on account of supply made by applicant and directly
linked to the rent/lease payable and thus includible in the value of rental/lease
service, being provided by applicant and taxable along with rental income,
under forward Charge Mechanism - Collection of amounts towards LAD funds
classifiable under SAC 9972 12 as rent/lease service - Sections 7(1)(a), 9(1) and
15 of Central Goods and Services Tax Act, 2017. [paras 8, 8.2, 8.3, 9]
Pure Service - Exemption to pure services - Collection of amounts to-
wards LAD funds provided by applicant to the SPDs not a separate transaction
but linked to supply of rental/lease service - Exemption under Sl. No. 3 or 3A

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