Page 165 - GSTL_7th May 2020_Vol 36_Part 1

2020 ] IN RE : AQUAA CARE (SURAT) RO TECHNOLOGIES PRIVATE LIMITED 123
The applicant has further mentioned S. No. 99 of the provisions of
Notification No. 2/2017-Central Tax (Rate), dated 28-6-2017, which
is as under -

Sr. Chapter/ Description of Goods
No. Heading/
Sub-
heading/
tariff item
99 2201 Water (other than aerated, mineral, purified,
distilled, medicinal, ionic, battery, de-
mineralized and water sold in sealed container)

As per the Notification No. 2/2017-Central Tax (Rate). - In exercise
of the powers conferred by sub-section (1) of Section 11 of the Cen-
tral Goods and Services Tax Act, 2017 (12 of 2017), the Central Gov-
ernment, being satisfied that it is necessary in the public interest so
to do, on the recommendations of the Council, hereby exempts in-
tra-State supplies of goods, the description of which is specified in
column (3) of the Schedule appended to this notification, falling un-
der the tariff item, sub-heading, heading or Chapter, as the case
may be, as specified in the corresponding entry in column (2) of the
said Schedule, from the whole of the central tax leviable thereon
under Section 9 of the Central Goods and Services Tax Act, 2017 (12
of 2017).” The applicant has interpreted that as per the provisions
the transaction falls under Notification 2/2017-Central Tax (Rate),
dated 28-6-2017 as the applicant is not selling the water in sealed
containers and thus transaction of selling of water by the applicant
is exempt from GST.
However, the applicant has erred in interpretation as the descrip-
tion of Goods against Sr. No. 99 (Chapter Heading No. 2201) of No-
tification 2/2017-Central Tax (Rate), dated 28-6-2017 clearly men-
tions in column 3 as the Water (other than aerated, mineral, puri-
fied, distilled, medicinal, ionic, battery, demineralized and water
sold in sealed container). Hence the exemption is not applicable to the
goods manufactured by the applicant and the applicant is liable to pay full
rate of Tax i.e. 18% (9% CGST & 9% SGST).
Further, ongoing through the business process of selling purified
water as per Annexure-1 attached with the said letter, the descrip-
tion of Goods mentioned in Notification No. 2/2017-Central Tax
(Rate), dated 28-6-2017 is illustrative and exhaustive. In Annexure-I
under heading business process of selling purified water, the appli-
cant stated as, “The applicant will sell purified water to the custom-
ers on Railway Station/Villages. For the purpose the applicant will
set up water stations at the railway platform and water ATM at the
villages to supply purified water.”
It is clear that applicant will supply purified water which is not ex-
empted under Notification No. 2/2017-Central Tax.
(3) The classification of the water sold in non-sealed container and
sealed container both are classified under Chapter 2201.

GST LAW TIMES  7th May 2020  165