Valuation of supply— Section 15 of CGST Act— In the instant case, the applicant is seeking advance ruling on the following question:

Whether the water and electricity charges as well as the notional rent of the land, provided free of charge by BHEL CFFP to the applicant, shall form part of the value of supply of oxygen gas by the applicant.

The applicant in their application has illustrated in detail the procedure of manufacturing the 'Oxygen gas'. This authority has no doubt that Oxygen gas is emerged out as a new product by extracting it from the atmospheric air with the help of refrigerator, compressors, separators etc. and during this process electricity and water is constantly used. The question before this authority is whether the water and electricity charges as well as the notional rent of the land, provided free of charge by BHEL CFFP to the applicant, shall form part the value of supply of oxygen gas by the applicant.

Held that— The water and electricity charges as well as the notional rent of the land, provided free of charge by BHEL CFFP to the applicant, shall form part of the value of supply of oxygen gas by the applicant in view of Section 15 of the CGST Act, 2017.