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TMI Blog2018 (11) TMI 1758X X X X Extracts X X X X X X X X Extracts X X X X ..... 97 of the Act, ibid advance ruling can be sought by an applicant in respect of : (a) Classification of any goods or services or both, (b) Applicability of a notification issued under the provisions of this Act, (c) Determination of time and value of supply of goods or services or both, (d) Admissibility of input tax credit of tax paid or deemed to have been paid, (e) Determination of the liability to pay tax on any goods or services or both, (f) Whether the applicant is required to be registered? (g) Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both within the meaning of that term? 4. In the present case applicant has sought advance ruling on classification and applicability of GST rate on the services rendered while supply/ distribution of electric energy. Therefore, in terms of said Section 97(2)(a) & (e) of CGST/SGST Act, 2017, the present application is hereby admitted. 5. The Assistant Commissioner, SGST, Khand-5 Dehradun vide letter dated 29-9-2018 submitted the report in this regard as under : ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ircular 34/8/2018-GST, dated 1-4-2018 12. Assessment against theft and unauthorized use of electricity Chapter-5 of the UERC (The Electricity Supply Code) Regulations, 2007. NA 13. Service line charges and overhead line charges for release of new LT connection and for enhancement/ reduction in sanctioned load. UERC (Release of New LT Connections, Enhancement and Reduction of Loads) Regulations, 2013. Exempted Service code-996912 14. Security deposits at the time of release of new LT connection and for enhancement in sanctioned load. UERC (Release of New LT Connections, Enhancement and Reduction of Loads) Regulations, 2013. NA 15. Recovery of cost of burnt meter from the Consumer Regulation 3.1.5 of UERC (Release of New LT Connections, Enhancement and Reduction of Loads) Regulations, 2013. Taxable @ 12% in 'terms of HSN 9028 (Schedule-II) 16. Registration-cum-processing fee. Regulation-4(2) of the UERC (Release of new HT & EHT Connections, Enhancement and Reduction of Loads) Regulations, 2008. Taxable @ 18% in terms of Circular 34/8/2018-GST, dated 1-3-2018 17. Works charges for release of new HT/EHT connection and for enhancement/ r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which attract GST at "nil" rate. Further transmission or distribution of electricity by an electricity transmission or distribution utility is exempted vide Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017. But vide Circular 34/8/2018-GST, dated 1-3-2018 certain services rendered during supply/ distribution of electricity to the customers made taxable. 7.2 On going through the documents we find that it is an undisputed fact that the party is engaged in transmission or distribution of electricity and the same shall be treated as supply of service. The applicant claimed that said supply of service is exempted from GST in terms of Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017. To know the genuineness of the claim, the relevant portion of the said Notification is reproduced as under : Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017 G.S.R.. ....(E). - In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest, so to do, on the recommendations of the Council, hereby exempts t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice lined) (v) charges for duplicate bill; provided by DISCOMS to consumer are taxable. On perusal of the said circular I observe that the other support services such as, (i) Application fee for releasing connection of electricity; (ii) Rental Charges against metering equipment; (iii) Testing fee for meters/ transformers, capacitors etc.; (iv) Labour charges from customers for shifting of meters or shifting of service lines; (v) charges for duplicate bill provided by distribution companies to consumer are taxable and for rendering the said services the applicant is required to pay GST @ 18%. Further the services mentioned in Annexure-B of the application filed by the applicant, I observe that all the services are taxable & attract GST @ 18% except for services mentioned at Serial No. 1, 2, 12, 14 and 18 of the said Annexure-B. Hence, in my view, the issue is no more res integra. (b) [Ruling per : Amit Gupta, Member] - Respectfully I have gone through the views expressed by Hon'ble member Shri Vipin Chandra. I differ with the views of other respectful member and as regard to services mentioned in Annexure-B of the application filed by the applicant, I observe that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n to distribution of electrical energy are exempt from the liability to GST inasmuch as all such ancillary activities having a direct and proximal nexus with distribution of electrical energy shall be covered under transmission or distribution of electricity. To further strengthen my view I rely on following case laws : Noida Power Co. Ltd. v. Commissioner of C, Ex., Noida [2014 (33) S.T.R. 383 (Tri. - Del.)] "for the purpose of billing the consumer for electricity consumed it is essential to install the electricity meter having capacity to withstand the load provided to the customer; any activity or service like erection, commissioning and installation of transmission towers and meters as also technical testing and analysis would constitute the activity of transmission and distribution by the service provider to the service receiver; and such service would be squarely covered under exemption provided under this Notification." Paschimanchal Vidyut Vitran Nigam Ltd. v. Commissioner of Central Excise, Meerut [2012 (28) S.T.R. 412 (Tri. - Del.)] On careful reading of the aforesaid Notification we find that this Notification exempts the services relating to transmission a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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