Tamil Nadu AAR rules that Applicant is not entitled to claim ITC on the goods/services used in installation of Solar Power Panels for generation of electricity; AAR notes that, Applicant procured, erected and commissioned Solar Power Panels for generation of electricity at their additional place of business and executed an “Energy Wheeling Agreement for Solar power plant” agreement with Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) for wheeling the Solar energy generated from its solar plant through TANGEDCO’s transmission and distribution network; Applicant procured electricity from TNEB which includes electricity generated by solar power panels installed at additional place of business and wheeled by TNEB for captive use at the principal place of business; AAR observes that, Lease Deed between Owners as Lessor and Tenants as Lessee, provides that, Lessors have provided adequate power supply to the building including 100% power backup through Generator; Separately, the Maintenance Agreement stipulates that Applicant shall pay upfront, common electricity charges supported by bills issued by Tamil Nadu Electricity Board and the Tenants shall pay/reimburse such payments to the Applicant including transmission loss; Observing that, Applicant has paid for net units consumed after deducting energy units generated by Solar Power Plant however, it recovered amount through separate invoice, for the gross energy units consumed by the tenants in the building at the rate charged by TNEB, AAR derives that, energy generated by Solar Power Plant are sold by Applicant to the tenants on their own account; AAR elaborates that, since Electrical Energy is exempted vide Notification No.02/2017 dated June 28, 2017, therefore, electrical energy generated by Solar Panel installed by the Applicant is exempted goods supplied to tenants and consequently, input tax paid on Solar Panels is ineligible; Distinguishes AAR rulings rendered in case of Nirmal Industries, Kesav Cement & Infra and Kumaran Oil Mill: AAR TN