STERLING & WILSON PRIVATE LIMITED Vs. JOINT COMMISSIONER, (STATE TAX) AND APPELLATE AUTHORITY (STATE TAX) COMMERCIAL TAX

JUDGEMENT

(1.) Heard Sri N. Govind Reddy, learned counsel appearing for the petitioner and learned Government Pleader for Commercial Tax, appearing for the respondents.

(2.) The petitioner, who is engaged in the business of setting up of Solar Power Plants, had been paying GST @ 5% of its turnover. As the rate of GST on the inputs, obtained by the petitioner, was higher than the GST rate of finished goods, the petitioner, invoking the provisions of Sec. 54 of the A.P. Goods and Services Tax Act, 2017 (for short 'the GST Act'), claimed refund of a sum of Rs.8,65,63,538.00, for the period January, 2018 to March, 2018,

(3.) This application was rejected and became the starting point of a fresh enquiry, for assessment of tax, for the period 30/11/2017 to 30/9/2018. The Assessing Authority issued a show cause notice, dtd. 17/9/2019, proposing to assess the turnover of the petitioner @ 18%, on the ground that the transactions undertaken by the petitioner are Works Contract, as defined under Sec. 2(119) of the GST Act. The petitioner objected to the same, on the ground that the activities of the petitioner would have to be treated as composite supply, as defined under Sec. 2(30) of the GST Act, attracting GST @ 5% on the turnover. This contention of the petitioner was rejected and the Assessing Authority assessed the turnover of the petitioner @18% and raised a tax demand for Rs.63,00,19,512.00 (CGST of Rs.31,50,09,756.00 and SGST of Rs.31,50,09,756.00) and a penalty of Rs.63,00,19,512.00.