Page 167 - GSTL_7th May 2020_Vol 36_Part 1

2020 ] IN RE : AQUAA CARE (SURAT) RO TECHNOLOGIES PRIVATE LIMITED 125
This understanding of the applicant is not supported by the plain meaning of the
Sr. No. 99 of the Notification No. 2/2017-Central Tax (Rate), dated 28-6-2017. If
that would be the intention of the Legislature, the Legislature would have simply
stated as “water (Other than water sold in sealed container)”. In that case the
words “aerated, mineral, purified, distilled, medicinal, ionic, battery and de-
mineralized” would have been redundant. It is a settled principle of interpreta-
tion that there are no redundant words in law.
The ordinary meaning of the Sr. No. 99 of Notification No. 2/2017-
Central Tax (Rate), dated 28-6-2017 is, in our opinion, as follows :
Water is exempt other than the following category :
(i) aerated,
(ii) mineral,
(iii) purified,
(iv) distilled,
(v) medicinal,
(vi) ionic,
(vii) battery,
(viii) de-mineralized, and
(ix) water sold in sealed container.
Since the applicant has himself claimed that they will be selling purified water, it
is not eligible for benefit under Sr. No. 99 of Notification No. 2/2017-Central Tax
(Rate), dated 28-6-2017.
Circular No. 52/26/2018-GST, dated 9-8-2018 issued from F. No.
354/255/2018-TRU clearly states, at para 6.3, that water other than those exclud-
ed from Sr. No. 99 of Notification No. 2/2017-Central Tax (Rate), dated 28-6-2017
would attract GST at “NIL” rate. Since purified water is excluded from Sr. No. 99
of Notification No. 2/2017-Central Tax (Rate) dated 28-6-2017, it will not be eli-
gible for nil rate of duty.
4.2 The second query is :
“Where company is selling water in containers whether selling of con-
tainer and water is composite supply?”
(i) We agree with the understanding of the applicant as well as
that of Jurisdictional office that selling water in containers is
composite supply as the principal activity is selling of puri-
fied water only.
In view of the foregoing, we rule as under -
RULING
Question 1 : What is the classification when the water is sold in non-
sealed container and its HSN code?
Answer : The classification and HSN code of water is 2201. However
the applicant is selling purified water which will not fall
under Sr. No. 99 of the Notification No. 2/2017 issued un-
der Central Goods and Services Tax Act, 2017 and Gujarat
Goods and Services Tax Act, 2017.

GST LAW TIMES  7th May 2020  167