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C. PRAVEEN KUMAR, V. R. K. KRUPA SAGAR
STERLING AND WILSON PRIVATE LIMITTED – Appellant
Versus
THE JOINT COMMISSIONER – Respondent
ORDER :
C.PRAVEEN KUMAR, J.
1. The Present Writ Petition came to be filed by the Petitioner challenging the Order-in-Appeal No. ZH3710OD19206, dated 20-10-2020, passed by the 1st Respondent demanding the Petitioner to pay GST amounting to Rs.63,00,19,512/- for the period from November 2017 to September 2018 along with interest and penalties equal to 10% of the tax demanded.
2. The Petitioner is a company engaged as a contractor by various entities for supply, installation, testing and commissioning of Solar Power Generating System.
3. Realizing the importance of regenerative nature and cheap cost of product, the Government accorded greater importance for setting up of solar power projects and imposed Goods and Service Tax at 5% (2.5% CGST and 2.5% SGST) on solar equipment. However, the services relating to setting up of solar power projects are charged GST at 18% (9% CGST and 9% SGST).
4. The Petitioner herein, used to enter into contracts with prospective buyers of solar power plants for supply and installation of equipment under turnkey basis and paid GST at 5% on supply value of equipment and 18% on the erection and installation of the said equipment.
5. It is submitted that, the impo
The solar power generating system is classified as a composite supply, not a works contract, as it does not constitute immovable property under GST law.
Composite works contracts are exempt from service tax prior to June 1, 2007, and the value of free supplies is not to be included for service tax calculations prior to the 2009 amendment.
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