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Not too long ago, the central electrical energy regulatory company (CERC) ordered SECI or Maharashtra State Electrical energy Distribution Firm Restricted (MSEDCL) to compensate Photo voltaic Edge and Vitality Ltd for the extra value incurred due the imposition of Items & Providers Tax (GST), on an annuity foundation.
From a complete of 450MW of tender capability, SECI granted 130MW of photo voltaic capability to Photo voltaic Edge and Vitality Ltd on June 2016. By a request for choice (RFS) beneath the Nationwide Photo voltaic Mission Section-II, Tranche III in Maharashtra, the overall capability of 450MW was supplied. Afterwards, Photo voltaic Edge and SECI signed three separate PPAs, with two tasks every of 50MW and the rest of 30MW, respectively. Scheduled commissioning date (SCOD) for the overall 130MW was 23.12.2017. Subsequently, energy sale settlement (PSA) between SECI and the off-taker i.e. MSEDCL, was signed.
In the meantime, on 1st July, 2017, GST was launched in India. In consequence, the petitioner, Photo voltaic Edge, incurred enormous extra value by way of venture value escalation and elevated O&M carrying value. To evaluate the extent of extra value born by the developer, SECI and the petitioner reconciled their respective change in legislation declare attributable to GST imposition earlier than the SCOD. Additionally, SECI forwarded the reconciled declare to MSEDCL, which was neither objected or commented.
Estimated Declare Element
|P2B4T3- SEPEPL-B- 5MH-1V||50 MW||8,27,44,271||8,04,84,959||8,06,65,967.5|
|P2B4T3- SEPEPL-B- 5MH-2V||50 MW||8,53,42,814||8,24,90,777||8,23,33,544.7|
|P2B4T3- SEPEPL-B- 5MH-3V||30 MW||5,06,74,955||4,87,82,531||4,85,20,801.5|
The distinction in SECI’s and MSEDCL’s evaluations of petitioner’s GST claims got here out to Rs.1,81,000.088 for the 50MW Parli Venture, Rs.1,57.232 for the 50MW Muktainagar Venture, and Rs. 2,61,729 within the case of the 30MW Parli.
After analyzing all inputs from petitioners and respondent, the fee noticed that the imposition of GST rule earlier than the SCOD of the venture will cowl beneath the ‘Change in Legislation’ clause of signed PPA. Fee additionally noticed the estimated declare ready by SECI, which was forwarded to MSEDCL , was neither objected or commented by the off-taker.
Thus after analyzing all remark, the fee approve the declare of GST compensation to the photo voltaic developer. It additionally ordered, the compensation should be paid on an month-to-month annuity cost foundation, which should be began earlier than 60 days after the issuing of this order. On account of any non cost after 60 days timeline, the SECI/MSEDCL can be liable to pay a penalty as late cost surcharge.