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2024 (9) TMI 1009 - HC - GSTClarifications sought by the petitioner regarding GST applicability on Battery Energy Storage Systems (BESS) - HELD THAT - The petitioner s prayer that directions be issued to CBIC to clarify the applicability of GST cannot be acceded to. GST is chargeable by virtue of the Central Goods and Services Tax Act, 2017 (hereafter the CGST Act), the State Goods and Services Tax Act, 2017 (hereafter the SGST Act) and the Integrated Goods and Services Tax Act, 2017 (hereafter the IGST Act). Any contentious issue as to whether Central GST, State GST, or Integrated GST is leviable on services is required to be answered with reference to the said statutes and the rules made thereunder. There is no provision in the said statutes requiring the CBIC to entertain queries from taxpayers or to provide clarifications regarding the statutory provisions pursuant to queries posed by taxpayers. In terms of Section 168 of the CGST Act/ SGST Act, the CBIC, if it considers it expedient for the purpose of uniformity in the implementation of the CGST Act/SGST Act, may issue orders, instructions or directions to the Central Officers as it may deem fit. However, there is no provision where CBIC is required to issue clarifications on separate queries raised by taxpayers directly. There are merit in the respondents contention that the present petition is highly delayed. If the bidders had entertained any apprehension regarding the terms and conditions of RfS, the same were required to be clarified in the Pre-Bid Meeting held on 12.07.2024. Petition dismissed.
Issues:
1. Clarifications sought by the petitioner regarding GST applicability on Battery Energy Storage Systems (BESS). 2. Delay in seeking clarifications and approaching the court on the eve of bid opening. Analysis: The petitioner, an Association of Power Producers, filed a petition seeking directions for respondent no. 1 and respondent no. 2 to decide on clarifications regarding BESS and GST applicability. The petitioner raised concerns about the ambiguity created by clause 30.2 (III) (e) in the Request for Selection (RfS) issued by respondent no. 1, impacting bidders' input tax credit entitlement and bid values. The petitioner argued that the confusion arose due to the Draft 'Tariff based competitive bidding guidelines for procurement of storage capacity/stored energy from Pumped Storage Plants' issued by the Ministry of Power, making GST applicable to energy storage services. However, the court noted that the RfS clearly stated that bids would be evaluated exclusive of GST. The court rejected the petitioner's plea for directions to the Central Board of Indirect Taxes (CBIC) to clarify GST applicability, citing that GST is governed by specific statutes and rules, and CBIC is not obligated to provide clarifications on individual queries from taxpayers. The judgment emphasized that bidders must determine GST liability based on relevant statutes. Additionally, the court highlighted that respondent no. 1 cannot issue binding clarifications on tax chargeability for BESS services. The court also noted the delay in seeking clarifications, stating that any concerns should have been addressed during the pre-bid meeting. Ultimately, the court dismissed the petition, finding it untimely and lacking merit. The judgment underscored that the bid evaluation would proceed without GST consideration, as specified in the RfS. The court's decision was based on the petitioner's delayed approach and the absence of ambiguity in the RfS provisions. The application was disposed of, and the petition was dismissed, denying the petitioner's requested relief.
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