Water recovered, which is de-mineralized water for Industrial use is classifiable under CTH 2201 as waters and taxable @18%
Authority for Advance Ruling — Effluent Plant – The applicant are an effluent treatment plant promoted by the dyeing units. They plan to buy the effluents from the dyeing units. The effluent will be processed at the plant and the resulting products will be sold at market rates. The delivery will be made either through pipelines/ lorry. The applicant sought an Advance Ruling as to whether the classification of the supply of outputs as sale of goods is correct; whether classification of water sold as Water (other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container) under Heading 2201 is correct; whether classification of effluent purchased from dyeing as other wastes from chemical or allied industries (3825 69 00) is correct; whether the method of arriving value for effluent using the net realization price method is correct as there are no comparable products and cost cannot be worked out.
Held that:- The Hon’ble Authority for Advance Ruling held that the proposed Modus of purchase of Raw effluent, treat it on own account and supply the outputs at market rates, the classification of supply of outputs as sale of goods is correct. The classification of Water recovered, which is de-mineralized water for Industrial use is classifiable under CTH 2201 as Waters described under S.no.24 of Annexure-Ill of Notification No. 01/2017-CTR dated 28.06.2017. The ruling sought on the classification of the ‘Raw effluent’ and the value to be adopted for purchase of ‘Raw effluent’ are not admitted as these questions are raised as recipient of the goods and not supplier of such goods.
Water recovered, which is de-mineralized water for Industrial use is classifiable under CTH 2201 as waters and taxable @18%
Authority for Advance Ruling — Effluent Plant – The applicant are an effluent treatment plant promoted by the dyeing units. They plan to buy the effluents from the dyeing units. The effluent will be processed at the plant and the resulting products will be sold at market rates. The delivery will be made either through pipelines/ lorry. The applicant sought an Advance Ruling as to whether the classification of the supply of outputs as sale of goods is correct; whether classification of water sold as Water (other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container) under Heading 2201 is correct; whether classification of effluent purchased from dyeing as other wastes from chemical or allied industries (3825 69 00) is correct; whether the method of arriving value for effluent using the net realization price method is correct as there are no comparable products and cost cannot be worked out.
Held that:- The Hon’ble Authority for Advance Ruling held that the proposed Modus of purchase of Raw effluent, treat it on own account and supply the outputs at market rates, the classification of supply of outputs as sale of goods is correct. The classification of Water recovered, which is de-mineralized water for Industrial use is classifiable under CTH 2201 as Waters described under S.no.24 of Annexure-Ill of Notification No. 01/2017-CTR dated 28.06.2017. The ruling sought on the classification of the ‘Raw effluent’ and the value to be adopted for purchase of ‘Raw effluent’ are not admitted as these questions are raised as recipient of the goods and not supplier of such goods.