The Gujarat Appellate Authority of Advance Ruling (AAAR) has ruled that 18% Goods and Service Tax (GST) is payable on specially designed Transformers for Wind Operated Electricity Generators which are meant to perform dual function of Step Down and Step Up manufactured by Suzlon.
The bench of Rajeev Topno and B V Siva Naga Kumari has reject the appeal filed by the appellant Suzlon Energy and upheld the ruling of the Authority of Advance Ruling (AAR) by which it was held that the specially designed transformers for WOG, which perform dual function of step down and step up, supplied by the appellant-assessee is not a part of Wind Operated Electricity Generators (WOEG) and hence it would not be eligible for the benefit of Sr. No. 234 and Sr. No. 201A of exemption notification No. 1/2017- CT (Rate), as amended.
The appellant/assessee is engaged in supply of goods required for setting up of power projects enabling generation of power through renewable sources of energy on its own & through its subsidiary companies,nrepeat manufactures Wind Operated Electricity Generators (WOEG) falling under chapter 85023100; parts like Nacelle, Blades Towers falling under chapter heading 8503; transformers falling under chapter heading 8504.
Transformers for WOEG are installed on the ground adjoining WOEG & is a device to link the electricity generated by the WOEG to the distribution grid and make it usable for distribution/consumption.
The appellant sought the advance ruling on the issue whether GST is payable on n specially designed Transformers for Wind Operated Electricity Generators?
The AAR held that Transformers are not part of WOEG and are leviable to CGST 9% vide Sr. No. 375 of Schedule-III of Notification No. 1 2017-CT (Rate) dated 28-6-2017.
The appellant appealed against the order of the AAR.
The appellant contended that the order failed to look at the fact that WOEG and Wind Turbine system are used interchangeably, that there is no difference between the two. The appellant never expected any ruling considering the same as a composite supply. The transformers are specially/specifically designed to be used along with WOEGs & is therefore to be treated as part of WOEG.
The AAR rejected the appeal and upheld the AAR’s ruling.
Appellant Name: M/s. Suzlon Energy Ltd.
Date: 30/12/2024
