Dismissed

M/s. Suzlon Energy Ltd.

GST AAAR30 Dec 2024GUJ/GAAAR/APPEAL/ 2024 /08

Case brief

AI extract

What is this about?

The Gujarat Authority for Advance Ruling (Appellant) challenged an advance ruling dated 12.4.2022 which disallowed benefits on specially designed transformers for Wind Operated Electricity Generators (WOEG). The Court held that transformers, even those integrated into the system, are not parts of the generator and the benefits were denied.

What did the court decide?

The appeal filed by the appellant against the Advance Ruling was rejected and the said ruling was upheld.

M/s. Suzlon Energy Ltd. — Consumer Protection | GST AAAR (2024)

¶1

lAIF

¶2

¶3

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¶4

AI)VANCI : I{l.l LIN(j(API'l rAL) NO.^{(}ll.l(iAAAMl,PI..ALl} 2024 108 (l^, APPLICn I ION NO. Adr.ancc Ituling/S(iS',t &C(iS i /2012/n lti 05)

¶5

Da|t^{.3 tL).f} 4

¶6

Namc and addrcss o l thc M/s. Suzlon Iincrgy Ltd., appcllant 5, Suzlon Ilor-rsc, Nr. Shri Krishna Ccntrc. Navrangpr,rra, Ahnrcdabacl,⁽⁾ Lr.ja rat (iS l'lN of thc appcllarrt 24nn t)cs0472N lzu Advancc Iluling No. and (itj.l/Gn n R/l<l 20221 1 (r datctl I 2..1.2011 I)atc J Llnsdrctron^()llrcc Ccntcr Corlrnissioncratc Ahrncclabacl SoLrth Division-VI - Vastrapur, Ilangc - [V [)atc o I' appcal 18.0s.2022 l)atc ol'l)crsonal I lcaling 1s.10.2024 I)r'cscnl lil' thc appcllant Shri l)hruvank I']arikh, C'A

¶7

nt thc outsct wc would likc to makc i1 clcar that thc provisions ol thc^{(-'cntral (i<loils} and Scrviccs^'l ax Act, 201 7 ancl (iLrlarat Coods ancl Scr'iccs^.l.ax Act, 20 I 7 (hcrcinalicr rcl-crrcd ro as thc '(](;S I Acr, l0 I 7' and thc^'G(iS'l' Ac1, 2017') arc pari materia and havc thc sarrc pro,isions in likc nrattcr and dil'ltr ll'om cach othcr only on a lcw spccific provisions. 'l'hcrclorc, unlcss a mcntion is pa(icularly rnadc to such dissimilar provisions, a rcl'crcncc to thc CGS'I' Act, 2017 would also mcan rcl'crcncc to thc corrcsponding similar provisions in thc GGS'I' Act, 2017.

¶8

'l'l.rc prcscnr appcal lras bccn lllcd undcr Scction 100 ol' thc CGS'I Act,20 l7 a.d thc GGS'I'Act,20 l7 by Suzlon l:ncrgy t.tcl., (hcrcinalicr rclcrrcd to as 'appcllant') against thc Advancc Ilr-rling No. C tlJ/(in n I{/l< l2)22l I 6 datcd | 2.4.2022.

¶9

¶10

I}'icfly, thc lacts arc cnumcratcd bclow for casc oIrclcrcncc:

¶11

a) 'l hc appcllant is cngagcd in supply of goods rcquircd lirr sctting Lrp ol' 1-ro'"vcr^{projcctscnabling gcncration} of powcl through rcncwablc soLrrccs o1'cncrgy on ils own & through its subsidiary cornptrnics;

¶12

Appcllant manul'acturcs Wind Opcratcd lrlcctricity (icncr lWOll(; I^lalling urrdcr chaprcr tt502j 100; par.rs Iikc Naccllc. Ill

I)agc

'l owcrs ti ling undcr chaptcr hcading [1503; translbrrncrs lalling urrdcr chaplcr hc rcling ti504.

¶17

^'l'ranslirrn .:rs lbr WOlr(i is^{installcd on thc groundadjoiningWOIlG &} is a dcvi, c to lin[< thc clcctricity^{gencratcd by thc WOIIG to thc} distributio r grid and rnakc it usablc^{lor distr-ibution/c<lnsurnption;}

¶18

o^'l'hc appc lant ti:cls that thc^{translbrmcrsarc spccially/spccilically} clcsigncd i^, bc rtscd along^{with WOI:Gs & is thcrclbrc to bc trcatcclas} part ol'W{ l:(i.

¶19

In vic", ol'thc lbrcgoing^{lacts, thc appcllant had sought Advancc} Ituling on thc lo^{,rwinrr(lucstiolls.vt:}

¶20

'l'he speci ,llv clesigned^{'l'rans.fbrmers} ./br Wind Operated lilectricit.r' (ienerator , which are meant to perJbrm dual .filnction ql Step l)ot^{t ctnd} Step tlp , tanuJhcttrred b|'^{Suzlon and supplied to the ctrstomersof} Suzlon tts^r part^rtf Wind^{Operotedlilectricity Generaktrbe lrealed o ptu'r of 14 nd Operated tilecn'icity^{Generalorand.[allsuruler Sr' Nrt'} 234 in Scl .'clule-l to Noti/ic'atbn^{No. 01/2017-Centrall'ax (llare)clatetl} 28rlt.ltrne l)aga l4 0/^{25 2017 reacl yvitlt Noti/icationNt. l/2017-Stcrrc} 'l'ctx(llule) lcnecl 30tlt Jtrne, 2017 ancl liable to Cenlral GS'I' crt thc rctta of 2.5'X, u^{trtg tt,ith} Gtrictt'trt^{StttteGSTol lha rate o/ 2 5'%'' trlt to 30tlt} Septanrbcr 201 I ctrul^{6%, each totvurcl.t CGS'l' untl SGS'l' witlt al/ccr} li'im^{lst)ctobcr, 202 Iby virltteo.f ontissionol tha saicl entn cttkl} crdclition r. l'ntnt No. 20ll^{lo NotificcrlionNo. 0l/20 l7-('cnlrul 'l'a.t} (llate) clar, tl 2Bth.lune.20t7 vide NotiJicutirn^{No. 08/202 l-(.-cntrul 'l'crx} (llate) tlar tl 30th Selttentber. 2021 read vith Noti.ficution^{No. 0812021-} Srate'litx1^{iute) clttted 30th Septamber, 202 l?}}

¶21

Corrscr ucnt^{t<> hcaring thc applicant, thc (iujarat Authority} lirr' Advancc I{uling^{(iAAILl, rccordcd thc lbllowing lindingsvrz}

¶22

. that a !y.s.:!11 includcs dcviccs and^{not just a gcncrator ilr tct't-ns ol'} .jr-rdgcn'rcr-rt^{rrr thc casc o[rl]clcctricl)holovoltaicInclia I'] l'td;}

¶23

. Lhat wol i howcr,cr, is a gcnclator &^{hcnccis di1'l'crcnt ll'onr ri incl} powcr pro :ct/wind turbinc^systcm;

¶24

. that thcrc r ' no scopc to includc translortrcr^{as a part oi WOI:(i;} r that transli rtncr is not a constitucnt^{o1 WOIIG;}

¶25

that wol^jr , which is a gcncrator in itsclt'&^{thc usc of translirrnlcris to} link thc \ )lrG's^{clcctricitygcncratcdto thc distribution grid;}

¶26

that wind rnill is a powcrcd macl-rinc to^{convcrt wind cncrgy into} r.ncchanica cncrgy; that it^{a stcpdowntranslormcr is additionally} attachcd t< a wind mitl^{for it to function, that docs not makc translbrtncr} a part o1'u nd mill; that^{dual lunction ol'thc transfbrmcrdocs not cc]Lratc} itscl l'to bc :rcatccl as^{a part and parccl o1'WOIIG;}

¶27

that thc r.r ,rd uscd in thc noti tlcation^is WOIr(l^{and rrot wind turbinc} systcnr/rvir^cl pou'cr^{systcllr/willd turbinc projcct;}

¶28

1019 (21)^(iSl l. I^{e (Ml')}

ffa[c^{2 ol- I{)}

sry

e that ClllC circular datcd 20.10.2015,^{Iistcd parts of wolic, whcrctn} trans.fbrnter docs^{not find a mcntion;}

¶34

. that transfbrmcrs conncct/jink WOI:G^{to distribution nctwork,tl'rat thcrc} is nofhing on lccorcl t0^{sr-rbstantiatcthat trans{ormcris an inalicnablc} part ol WOtr(i;

¶35

r that translbflIcrs arc ncitl-rcr placcd in naccllc^{nor towcr but arc placccl} on thc ground bcsidc^{thc WOI:G;}

¶36

that WOIlG per se is capablc ol gcr-rcrating clcctricity^{with wir.rcl;}

¶37

r that thc appcllant is supplying transltrrmcrs dircctly^{to thc rccipicnts on} principal to principal basis and^{not on bill to shipbasis.}

¶38

t'hc GAAII, vidc thc impugncd^{ruling datcd l8'10'2021, hcld as}

¶39

fbllows

¶40

Rt l.l(;

¶41

1 I_r.rn:li,rr:rcr'',irj llot P.lll^{,,1_\'0|(irrlditrl l.ri:r1'L-lrr ( (iS_l} '/^')"'\rJ(' Sr \o .-1^,.,t SrhcJLrlr'-lll^{L,l \orilrertrcrt \oI l()ll-L illt.ric)} ,l,rt.J lI-(''l0 i:

¶42

Aggricvcd by thc albrcsaid advancc^{ruling,thc appcllantis bclbrc} us, raising tl-rc following contcntions,^vrz

¶43

impugncd ordcr crrcd in holding that^{in thc casc ol Iircrcon India,thc} rnattcr was rcmandcd back; in-Lact in thc said^casc thc^{I Ion'blcSC} allowcd thc appcal whilc holding that^{translbnr.rcrsarc vital parls ol'a} windrnill;

¶44

a thc impugncd ordcr lailcd to look at thc^{transfortncrll otr lhc anglcof} gcncral principlcs o{' intcrprctation; that thcy should^{also bc undcrstood} bi Lhcir popular rncaning/cor-r-tuon^{parlancc principlc;}

¶45

that WOI:(l anci Wintl^'l'r-rrbinc systcm arc^{uscclitrtcrchalrgcably; that} thcrc^js no dil'l'clcncc bctrvcct-t thc two;

¶46

a thc appcllant ncvcl cxpcctcd any ruling considcring^{',hc salrc as a} compositc supply;

¶47

a that had thc translbrmcr bccn placcd in thc Naccllc^{or thc towcr,thc} bcncllt ol thc notillcation would havc bccn allowcd;

¶48

a tl'rat lhough 1hc transformcr placcd adjaccnt to thc WOITG,^{is doing thc} samc lunction pcrlormcd by^'l'urbine stcp up transfbrmcr [which^is usually installcd in thc Naccllc I but sincc it is^{placcd adjoiningto} WOl1G, it has not bccn considcrcd as a parl olthc WOIrG;

¶49

that thc translbnncr supplicd arc an incvitablc con'rponcnt ol^{thc cr-rtirc} WOIrG; that WOtr(l is of r.ro usc if'thc clcctricity^{gcncratcd cannot bc} put to usc by thc cnd custonlcr.

¶50

I)crsonal hcaring in thc rnattcr wzrs hcld on 15.10.2024, whcrcin Shrr [)hrr-rvank I)arikh, OA, appcarcd on bchal l'ol- thc appcllant and rcitcralccl thc glounds o1'appcal.

¶51

l)a ol'l0

¶52

{

¶53

Wc lr ic calclully gonc through and considcrcd^{thc appcal papcrs,} rvlittcn suburiss; ns lllcd b1,thc appcllant^{and subtr-rissions madc at thc timc ol'} pcrsonal hcaring thc Advancc t{uling^{givcnby thc GAAI( and othcr matcrials} availablc on rcct^lcl.

¶54

'l'hc p'rnrary issuc to bc dccidcd is whcthcr thc spccially dcsignccl translirrmcrs lbr woli(l^{which pcrlbrm dual lunctionol'Stcp [)own and Stcp} [Jp ntanul'acturc lby^{thc appcllant and supplicd to thc customcls iis a palt ol} WOI:G bc trcatc i as^{part ol-WOITG and lhc ralc ot'duty.}

¶55

I l. Ilclirr. ilncllirlg on t() tltc^{issttc,r.r,'c rrottld likc to rcproclttccrclcr alll} l)ortiolls^{o1'citclltt,clllrillcatiorl ct thc cxcttll-rlionilotillcatitlt.tIirr casc ol} lc lcrcncc r.'i:

¶56

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¶57

l'}agc 4 o1' I0

¶58

¶59

CBI,IC Minutcs of^-fariff Conltrcncc hcld on ztl't'lzgth Octobcr 201 5 issucd vidc instruction l'.No. 96/85/201 5-CX.l tlatcd 07- 1 2-201 5.

¶60

l).16 -Vatlodaru Zone- Scope of lixemption- ports of x,tintl-tttill : Issue:

¶61

'l'herc exi.rls ambiguily rcgurtling exemption to purts o/ tt,intl-tnill in li;4ht o/' 'li'ihtrnal .t ordcr in llte cu.se o/ ll,,[/s. (icmini In.\trdtech ])yt. l.td. I/,/,s. ('omm i.r.sionc t. o/^('. lis..,\ru.shik 12011(300)1.-1.'l lJ6 ('li'i-,llurlthui)1. On tlrc ttthcr hutttl. llon blt ,\ttltrt,ntc tottt l in trr:;c of :,1/.t (-ttrlxtrutiott l.t(.1. I i,. ('ontnri:.riorrcr o/ (..t..r.. (' l(ltttu l)006 (20i) l.:1.'l i62 tS.('.ll hod hclcl rhur ittsulutacl tritts untl t,uhlc.: Lrrt nol l) t'|.\ o/ virtd ntill rltith is cot'ulslcte in il.sel/ v'ithotrt alcctrit utblas. ulthotryh v ittl mill nta.t not ha uhlt to .fitttctiort lt ithoul thcsa cahlc.y, ltattcc thc htrrcf it rtl crttitJ)tion i.r not ut'uilohlc to^('trble:; trntl virt.t. lturthcr. in ttt.:e of .\1,.s. l..rtt:rron 1lnlitt,l l.tcl.. .ltrtlxtrit.t ttf .'ltlrunc.e l?uling hrul rLtlttl tltut antr.y ll intl Ol)('rLtt((.1 lilectricitl^(]encrulor" cotvrs the generalor pcr-.\e unll il i.\ tlol intcn(lcd t. incltrtlc cquipmenls v,hich arc cleployed with thc generutor.fbr protluction o/ clcctt.icity.^'t hc sponsoring zona wo.\ of tlta t:icv, lhal thc tower.\ and olher.s purts. which ure not tlirectly rclated to generution o/ electricity tttoukl nol be cligibtc ./br axemption. ln riar of llte :;lton.xtring zone. it vottlcl be da.siruhlc thut lhe li.tt o/ aquiysnrettls/1sttt't./'conlpotlttlts cligiblc /br cxcmpliotl mu)) l)a spclt out in tha li.rant1tliot't Nol i/icul ion.

¶62

I)isttrssiott & I)at,isiott

¶63

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¶64

,- \otilication -\o.l /201 7-(_'cn t ral^'l'ax (llatc), thc 2tj.06.20 l 7

¶65

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¶66

Notification No.tt/2021-(lcntral'l' ax( lia tc ), thc 30.09.202 I

¶67

tn the said uotiticarioll. -

¶68

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¶74

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¶75

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¶76

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¶77

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¶78

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¶79

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¶80

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¶81

,rrlrl^{ri:' r.e!. fire oi^{\1hLIll LiaL:]:r1 ra\rl'le i?r"rr.:'fe.Llrer:} I rlrr rrrtr\ rr^{\ ' rS ,,r (lr. TrFlr i inr 1' r.\l rr lhJ : r^' l ' l t - .^{, '} ,^., : ' " l.jl'l-'i rl'l '. I\ I^(' 'lr'! : lr,r.. lrjl_ l(i s R^.,rlr I )..^{ri. t.L\L-'rl .rl'l)l\ i i \l:i"r} rlk, purp!:.!^Lrl llrrt^{t1rlr1 sh]Ll bc Lircru.rlls 1.ul!} ler "rrt r1 rhc rn,r\ .rrl5kirr.1lr.^{.hirrlr'i lt!} rl itr(h 'uP|lru'. .rrrl lh( r(rtrrl,rnr^{(hirl |et^{.( l oi lh. !rr1!]} 'Lrrrrd'rrlr!1rr ah11rsad sl)rll I)a,1..nled^{x: v,rlue(11lilc irrrJIrr\lble-i.'l.,rae'.}}}}

¶82

't'hc lu.st avcrmcnt which nccds to bc addrcsscd is wllcthcr spccially dcsign, tl^{transformcrs lor WOI'IG,which pcrltlrrn thc duallunctiotr} ol'stel; down an(^{\tepa7r, supplicilby thc appcllant along rvith wolr(1,shotrltl} bc rrcatccl as.r I^rlL WOlr(j^{or othcnvisc.CAz\l{has rclicd6tl circulat' \p} l008il5/20 l5-C datcd^{20.10.20 15, issLrcd by (llllC conscclLrcntto sccl<int} clari llcation lrun^{Ministry o1'Ncwand lLcncwatrlc Iincrgl'.on thc itcms which} rvould constitr-llc t)irrts ol'WOlr(1.^{'l'hc GAAIi.hasalso rclicclon thc Mirrutcs} ol'thc^{'l'arill'Cor l'crcncc, hckl conscqucnt to thc issuc o1'thc al orc rrcn tioncti} clarijication, wllrcin^{thc samcwas rcitcratcd.As is cvidcnt,tt'anslirrtlcrs} havc nor bccn^{; rcludcdas parts o1' Wolr(i try thc Ministry ol'Ncwand} l{crrcrvablc t.)ncr''y and^{hcncc, thc contcntionol thc appcllantthat thcyarc} parts ol'WOI.)G^{i .} nol. a lcgally^{tcnablcargumcnt.}

¶83

l)agc 6

¶84

¶85

li. 'l hc ncxt avcn'ncnt is that GnnR lailcd to cxaminc thc tlarrs lirrmcr fi-orn thc anglc o1' gcncral principlcs of inlcrprctation & that thcv slrould bc undcrstood by thcir popular nrcaning/comrnorr parlancc plinciplc. Wc lirrd thal thc appcllant has not produccd any rlatcrial bclolc us whicl.r could lcad us to a conclusion lhal transfitrmer in tcrms of thcir popular nrcaning/common parlancc principlc, arc pafl ol WOII(1. Iiurlhcr, wlrcn thc conccrncd Ministry itscll'has not" includcd translorrncr to bc a part ol thc WOliG, thc rcliancc on popular mcaning, ctc., is not a plar-rsiblc argumcnl.

¶86

'l'hc ncxt avcn.ncnt ol' thc appcllanr is that thc (lAAIt crrccl in holding tl.rat tl'rc ordcr in thc casc ol- l:ncrcorr lndia l,td, ibirl, is not applicablc; that tl-rc mattcl' has not bccn rcnrandcd bacl< [o lhc asscssirr-u olliccr but irrstcacl thc appcal stancls allowcd by thc IIon'blc Apcx Oourt. Wc l.ravc rcad thc orclcr datcd tt.3.2016 in CA No. 1954/2006, passcd by thc I)ivision IJcnch ol-rhc Ilon'blc Suprcntc Cour1.^'l'hc rnattcr in-lact was rcurandcd by thc first appcllatc authority, which was uphcld by both thc Ilon'blc^'l'ribunal and rhc I lon'blc I ligh Court.^'l'hc albrcmcnlioncd ordcr datcd tt.i.20 16, is passcd in an appcal against thc ordcr ol thc I lon'blc I ligh Courr. What is lbrthconring is that thc disputc in thc said casc was whcthcr M/s. l:ncrcon (l) Ltd, would bc clieiblc [.r crcnrption r-r/s [J rcad u,ith thc -5'l' schcdulc ol- thc Karnatai<a Salcs 'l ar Act. It is in this background that said ordcrs ncccls to bc rcacl. I'hc rclcvarrt portion ol- thc ordcr, is rcproduccd bclow lbr. casc ol'rcl-cr.cncc

¶87

'l hc lligh (:out't ofie I toking nolc of the pt.ottisions of Seclion 8 trntl llntrt: 57 hus observed thal ntauning of rhc vords^"Lfirut l,tills is nrt dclinetl untlcr the .,lu utul. lhe,clore, .tome nteaning hu' to lre us.\igned to the same . It hu.t firrlher ol.tscrt,cd thtrt .:inta Seclion ll o/ thc ,.1ct cxampts certoin cutegories of gootl:-" thicl.t ut.a .:pecilied in tha l;i/ih.\chedula ol the lct. it i.\ onb) those itcm,s t,hit.h tltruli/tt r.r.s gools are to ht escntpted.^{'t'harco/ier.} un endaurotrr i.r notle lo point ottt tl.hut t.t,otrlrl he the good.s lirlling ttithin thc cqlra.s:;ion " l4rintl il|ilt . tt ha.r hclt.l thut thc cxprt,:s.riott^"l,l'intl ..lill" vottld inclutlc rotor..ot1.\i.\titlN o/'blrula.;, thc htrh o.s.yanthlt,; nttccllc: .t'tt:.t, .:.t).\lc1n. loyar ttnd yritl .,nc hrutniLrlion j ,r.rr arAlr itttltrlir,.t Irtrrt.tlitt fitt'r' trrtit litr tl<'livt itt.q rltt' ltorrcr to tha ,qritl ncr ,,rrtr.k lt i.t ttl.trt rtltint,Ll !lttrt tltc tlttttitttl vttrk rtntl rrutt.tfinutct'.s trt t' t'i/ttl lxrt r.t of u vintl nill ttntl tlta ,,ritttl rlill ttrnttol ht l)ut tt, u..'trttl it tttttrltl rntt ht ftrrtLtirtttt.tl tltyicr,,titlrttrl tlu, L'iL,L.tritrrl vork.t und tlta tntnsfttuner..t und lltcrafbre, thet. l ottltl ul.ut ha rttordatl rt.s lttrt: ol rittl ltill llotratcr, the Itiett (iturt hus u)rrrc l0 ll,a con t lusitttr tltttl irt xtli r n.r littttrrluliott rutrA elc. is tttncertrctl lhtt tttttttlrl not bc a-te fit lrlerl us it rloes trot lhll tvithitr thc nrctnittg ol trittd nrill. Il is thc yulitlity o/ lhis pttrt ol the ordcr whiL.lt tttlls /br 0ur t/(ttti0n.

¶88

ilficr heuring thc lutrnetl counscl .fbr the portia.. trc cu.c of'th( ol) in ion. tltul Lt firnclunrcntul mi.ytuke v,hich i.y comnti ctl bt,the uttthoritic.s btlrnr i\ IltLtl fottltl tiotl

¶89

I)a -sc 7 oI' l0

¶90

¶91

)ork or in.\ rllalion v'ork. which is^{even con.sitleredas purl of n'orksLonlructh.vlhe} .,1sse,r,rlrg^{( ,licer} himscll, connot he lreuled^{Lt,\ "grntls". l'\en i.f u'c proceed ttn llrc} busi:; thut .' ch t'ork does rul ./hll vithin lhc expressirtn^{"LVind lvlill". slill it utuld} n()t hc lt'e( ,'tl u:^gootls v'ltit'h could^{bc erigibleto xles lux ttncler lhe ,4c1.-1. l)t)it1tc(l^{oitt rbot't'. lhc,l.tscs.ring Ol/it'cr hinuell t'lu.:';i/iul ;uchgrxxlsittwtlrttl irt} tt.(!LttIi()n⁽⁾ \tork\ tonlt ucl.^Onca lhi,t^{l'tr:; tln opittittttol tht tl.t.ressittgOl/icr:tttrnl} lh(, l)(1't ol^,trli ri''. littrntluliotl ot^{trcLliot'lttttrk rt'!ulctl ltt ttttrk.s(ottltutl. t)ttllti. gnttrnLl it,;t. rut 1;ttle.y ttu crnld^{huye hacn thurgatlthtraon. llc hulc ul.stt} ltrtitrtcLl oul uhot'(: t ttl e|ct1 lht l;ir.vt .4plsallulc.4uthorilv^{proc'cttletlrtn llrc bu';i.;lhol lltc} rork like i,trntlttlitttt rtot k, clcL'lrical^{vttrk' contntissioninYclc.1'14/.r ".s?rll()/} uLtit ilit.\ tt,^.1 ./itrlhe r lhttl it^r|u.s inditi.sible".^{On tltis} litttling^{a.\ 'clltN)} .fitrtlrcr uL'tiot1 lo le^{r ',} sula,v tt$ v^{us 6} retluired.}}

¶92

Icrrtphasis^suppliedI

¶93

'l hc alitrcrncnlir ncd ordcr ol' thc I lon'blc Suprcmc Court is on an cntircly clill'cr-cnt aspccr rclating to a^{dil'l-clcnt law and to an cxcrllption, which} incidcnrally is |^,L a disputc^{in tlrc prcscnt procccding. 'l'hc lindings ol'thc} I l0rr'blc lligh^(,Llrt, as^{quotcdsttpr1and ol'thc Suprcrllc Collrt arcrTttrt tht'} r\ct ancl thc cxc^{rpLiotlin qLlcstiotr.ln vicrv ol-thc Iorcgoillg, thc appcllarlt's} avcnlcltt rclyir; I on [hc^{abovc judgcrxcrlt that thc spccial[1' clcsignccl} rransli)riltcrs Ibr WOtrG,^{which pcr'lbrrndual Iunctionof stcp downand stcp} Lrp, should bc tt'c^{rtcd as a part WOllG,is not lcgally tcnablc'}

¶94

t5 '['hc appcllant wc llrld l-ras rcliccl Llpoll lrany casc la\vs to sr.rbstarrLiatc his^r gUnrcnt, sonlc ol'which arc ils Llllclcr |t

¶95

inl l' Ltclll' LtcllLtcll

¶96

inl l' Ltclll' LtcllLtcll (i)Sonai linginc r-irrl lrlcctlonics Ltcl^' 1ⁱⁱ )^{I'}arr'y, I'ingirrc} (iii) l)rccicast I) -ttl & Wcstclrr^{l)rccicasl I'} Lttl & \l'M l.ttl} lcit.tLit'tr^rr'rt rncntioncd I (iv)C il{ Matrr,rl: :LLirinc. Indltstrics Ltcl I

¶97

-l hcsc arc judgr: ncnts pcr-tainirlg to thc Incomc 'l'ax Act. A barc rcacling would rcvcal tl et thc^{disputc in a rnajority ollhc cascs pcrlaincc] to} clcprccialion. I)c,rcciation^{not bcing an issuc in thc prcscnt appcal, wc do trol} Ilrrd thc casc lau^. applicablc^{as laI as thc prcscnt appcal is conccrned.In-l'act,} wc would likc tt sr:bstar-rtialc^{our linding, by quotingthc rclcvant cxtracls ol} thc^j uclgcn]cnr o^II hc^{I lon'blc SuplctncCourt in thc casc ol' l)ccpak l]a jai I W I)} ((lri )No. 711200 i, rvhct'citt it "r'as^{hclcl as lirllorls:}

¶98

' l0l.l (ti) Ia( ory (A -17915^(l'urrc)

¶99

' I ar Appcal^(10'1,'2012 , Lriirrirt I ligh^(bun

¶100

'^{l0I 6'l Lr(lorp( I) l} )⁽⁾ ra)I (llC I]onrbar')

¶101

,t [)agc o :l r;c$d/ >!t --

¶102

¶103

lt is well scttleLl lhLtl u lutlgmant of u^('ourt i.\ tlol to bc raud mcchunicolly us u liuc'lid.s lheorctn nor as if it was^(t.\lLtlule .

¶104

t. On lhe suhiect o/ precetlents l,ord llolsbu'.y, 1,.(1.,,suitl in Quinn^ys. Lealhent t901 /c 195:

¶105

" Nov ha/itre tliscu.ssing tlla cu:a o/ /lle n l/.;. l;lool ( l,\9il ) 1(' I uttl vltut vas tlctidctl lherein. lharc (rc lr'o olt:;arvtliott.: ol u gtncrol tlturtrt'lcr' vhich I^y i.;h to nrukc. utul onc i.\ to rcpaut thut I ltuyc rer'.t, ofian :uil ha/ira. lhul arar.t' jtdgmattt nttr:;t ltr raul u.s upplituhlt t() tlt( l)ut tiLlrlut' fLttts ltt^{ottior u.,;.;trtncl} trt^lta 1;rotL'Ll.^.t'irttt, the^{,tattt,rtrlit.t} of lh! t.\pt'a..\it)n.\ vltich tturt bc fitrtrul tlrur( (rc txtt intcntlctl to ht,a.rlxt.tition.s of tltc tholt lot. hut urc grtrarrrcd dnLl qtruli.fied h.t tltt lrurtitrrlur ftrtt.r of tht,t.trst in t,hich such crytrc.s.sion:; are to bc.fitund.^'l ltc otltcr is thul Lt tuse i: onl_t, urt oulhority.lbr^y'hctt it uctuulbt decidcs. I anliraly deny lhut il cun ba qurstatl /itr^{o proposition} thal^moy-seem to /itllou logicalll,/ntnt it. Sttch u nuttlc of reesoninN us.\unle.\ thctt tha latt is ncc'c.;surily u logicul^{('otlc. y} hcrcu,; e^yar.t. luvl,er n7yy1 uckrulrlatlgc thut thc luty is not ulvu.,s ktgitul ut ull."

¶106

fi'c cntirtl.t agraa tith tltc ulxtya obserwtlirtn.t

¶107

Wc colrcur with thc lindings ol'thc (;AAI{ ir.r para 3t1.3 ol'rhc irrpuencd ruling, so lar as it statcs that WOl,(i as Lrscd irr thc rroti llcation no. l/10I 7-C'l (ltatc), r6ir{ woLrld not inclr,rdc thc spccially clcsignccl translornrcr.. Iivcn othcrwisc, it's a tritc law thal cxcrnptir)n notillcations arc to bc inlcrprctcd strictly. Wc substantiatc this linding, by rclying on rhc judgcmcnr of'thc Cor.rstitution llcnch ol thc I Ion'blc Suprcrnc Court in thc casc oi t)ilip Kr-rrrar and Company [20]ti (.r61) t:.t.t 511 (sc)l whcrcin thc (loLrrt hclcl as ltrllorvs vL lrclcvant cxtracts J

¶108

llt :.trnt tr1t. \1( uti.\11(t lht rcft,rc'nta ltsltlittg rt.s ttttrlar

¶109

(l ) l'.rctrtlttiott tuttif ittttion :;hotrltl bc itlt(t.l)r?t((l ttriLtl.t.. tltr huftlc'n o/ ll^{ot'irtgLrltpliuthilit.tyottltl ba on lltt./..'c.!.\ca} to .thorl lltul^lti.: tLr.:( contrt.,; v'illtin the puronrclcr,\ of lha crcntption r:luuse or cympliotl notificutirsu. ()) fithcn there i,s tntbiguit.t,it1 (.(ntl)tiot1 notili(ution rrhich i.:.:trbjcct t0 slriLl inlarpr?lelion. the hanafit rsl .tuth umbiguit.l,tonnot hLt tluintttl h1'tha .\uhiecl/oss?s.\e c untl il ntu:st he intarlst'alcd in.lirt,oLtr tt/ llta t.ar(.nu(. (J) 'l'he rolio in ,\un lixport cusc (,ttr1st.u) i.t tlot Lotj.act untl trll thc decisions tthich took:;imilor viey,u:s in Sun lixport cusa (supro) stuntl.s oyc rru lecl.

¶110

Wc thcrclirrc, hold that thc spccially dcsigncd transfirrmcr.s 1irr WOI:(], rvl.rich pcrlorrn dual lirnctir)rl ol'stcp down ancl stcp rrp, sr-rpplicd by thc appcllant is not a part of wollG and hcncc it woulcl not bc cligiblc lirr thc bcncllt olSr. No. 234 ancl Sr' No. 20I A ol'cxcrlptir)n n()tillcation No. l/20I 7- C' I' ( t{atc ), as :lntcnclcd.

¶111

l) ol l() \

¶112

¶113

¶114

IU. ln icw o1' thc abovc tindings, wc rcjcct^{ll'rc appcal lilcd by} appcllant M/s. Suzlon lrncrgy Ltd., against thc^{Advaucc I{ulingNo.} (llJJ/CAAIr./l{/1 022116 datcd 12.4.2022, passcd by thc Gujarat Ar'rthority lirr' Advancc I{uling

¶115

l^
1 I{a icc{'l', pno )
lVl c rn bcr ( i(; s'r')

¶116

l'lacc: Al'mcdal^Lri I)atc:&.12.202

¶117

ffi
ri
(,r

¶118

EJr

¶119

(li V Siva Naga Kumari) Mcnrbcr (C(;S'l')

¶120

I'}agc l{) o1'l0