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TMI Blog2020 (4) TMI 869X X X X Extracts X X X X X X X X Extracts X X X X ..... ers are taxable. The facts of the judgment is narrated that the ancillary charges collected by Electricity Distribution Company towards application fee, meter rent, other pre and post connection charges for shifting of lines, etc are covered by entry 25 of exemption notification number 12/2017-Central Tax (Rate) dated 28-06-2017 relating to transmission and distribution of electricity. Hence the same would constitute composite supply as per section 8 of the GST Act. The issue of the exemption activities carried out by the applicant with reference to administration and Pre and Post connection charges towards supply of electricity is pending before Honorable Supreme Court of India vide UNION OF INDIA AND ORS. VERSUS TORRENT POWER LTD. AND ANR. [ 2019 (8) TMI 779 - SC ORDER ] - Since the matter is sub-judice therefore advance ruling on aforesaid issue cannot be given. X X X X Extracts X X X X X X X X Extracts X X X X ..... settlement of Power purchase bills in time from the power Generator like KPCL and other Power generators. 9. Rebates collected for in time payment of energy purchase bills dues Discount given by the Power supply company for in-time payment for energy bills We purchase Electricity from Power supply Company for distribution. If the payment to the Power Supply company is made within the due date for their energy bills, the Power Supply Company will give discount/ rebate for in-time payment. 10. Income accrued on account of energy savings Due to Power savings by the consumers, the Govt. will give certain incentives. A part of such Energy Savings will be passed on to CESC. The same is accounted under the head "Income accrued on account of energy saving" 11. Incentives Received Incentives received from the Power Corporation/State Govt. from time to time under various schemes. 12. Rebate on Power Purchase Bills Rebate received for settlement of Power purchase bills in time from the power Generator like KPCL and other Power generators. 13. Liquidated damages 1. Energy purchase bills 2. Others Miscellaneous recoveries/income Related to power purchase. Amount Recovered as Dam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce Excess provision for Interest and Finance charges on Borrowings etc for the next Financial Year made in the previous period is written back in current year. 23. Other Excess provision in Prior Periods Other Excess provision made earlier period (Pre-GST and after GST) is written back in current financial year. 24. Other income relating to prior periods Income if any relating to pre-GST period received if any is accounted in book of accounts after GST Implementation. 25. Security Deposits transfer to Income after 3year pre-GST Deposit Amounts like ISD, ASD, EMD, etc collected from the consumers for connection or contract works if not refunded due to non-traceability of consumer/contractors after 3 years the amount will be transferred to Misc Income of the company. (along with amount pertaining to pre-GST Transferred in GST Period). The amount will be paid back to the consumer when the consumer traced out or requested for refund 26. Rental from Staff Quarters Amount Collected form the Employee/ Officers of the CESC for lent out of the residential quarters. The HRA amount paid in the salary to the Employee will be recovered as the rent amount. 27. Part-time Sweepers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or consecutive three months, the Electricity supply will be disconnected. When consumer makes the payment of dues, Re-Connection Fee will be collected at the time of re-connection of Electricity supply. Further the amount is collected in the Power Bill itself and not collected separately from the consumers 39. Fee for Testing of Installation Fee collected from the consumers for the testing of authenticity or working condition of installation like meter, capacitor, etc for supply of Electricity 40. Installation Fee Collected towards Issue of NOC (No Objection Certificate) Fees Collected form consumer for Issuing No Objection Certificate (NOC) at the time change of ownership of the premises 41. Name Transfer Fee Name Transfer Fee will be collected from the consumers for change of name from existing consumer name at the time change of ownership of the premises by purchase or lease or rent 42. Service Line Charges Amount collected for giving connection through Service Line from point of supply to the premises of the consumer. 43. Additional load Fees Fee collected for Providing additional load of power in addition to existing load as per requirements requested by the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to distribution of electricity not specified in the above list 55. Changes of meter/replacement Charges collected for Changing Electro-mechanical Meters to EVM Meters request/ replacement of burnt Meter/fast gripping meters etc, at consumers or at complaint by Meter readers. 56. Line shifting Charges Chargers levied for shifting of Line/poles from one place to other at consumers request/ as per city requirements like widening/construction of roads etc 57. Delayed Payment Charges In case delay in payment of electricity Bill, by the consumers, delay payment charges are collected from the consumers at the rate of 1% per month calculated for the no of days delayed. Further the interest amount is added in next month Electricity Bill and collected as Electricity bill payment from the consumers 58. HT/LT Meter Testing Charge Charges collected for Technical Testing and Analysis of Meters to check the working condition of Meters like capacitors, current, reading constant etc. The testing can be made at consumer requests (at time of new connection and/or change of meter) or if complaint lodge at the time of reading of meter not working. 59. Calibration Charges Charges colle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ower recorded as Power factor penalty 68. Meter Burnt-out Cost Amount collected towards Burnt out meter (for various reasons like short circuit, overload) Pending decision Subjected to Finding fault from either party. Refund Subjected to the condition fault Found on Distribution side. If the fault is from consumer the amount account as income PRE CONNECTION- FEES/AMOUNT COLLECED FOR PRE SERVICE CONNECTION OF ELELCTRCITY RELATED SUPPLY 69. Application Fee Application Fee collected from the consumers for initial connection of Electricity supply to their premises as per KERC regulations. 70. Collection of Registration Fee on HT/LT/ Temporary Application on supply of Electricity Registration Fee collected from the consumers for Temporary connection of Electricity supply KERC regulations. 71. Facilitation fee towards Solar Roof Top system (SRTPV) After installation of Solar Roof Top system (SRTPV) in the consumer's premises, facilitation fee is collected from the consumers for the Supervision Services provided by CESC from time to time. 72. Registration fee towards Solar Roof Top system (SRTPV) Registration fee collected from consumers for new connection of Solar Roo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction to the consumers for e.g. from LT to HT or from 10KVA to 20KVA, Augmentation Charge is collected. 84. Amount Collected towards Self-Execution Works Amount collected for goods/ services given for self-execution of Electrical Works in relation to connection of Electricity for new Layouts. 85. Development Charges Nominal Amount collected from the consumers for development of infrastructure to give supply of Electricity to a specific place. 86. Service connection charges (Supervision charges) Amount collected towards supervision charges for initial service connection to the consumers relating to supply of Electricity. 87. Amount Collected towards Deposit Contribution Works (DCW) Amount collected from Consumers for execution of Deposit Contribution Works in relation to the Electricity connection at Layouts. The amount is the cost collected against the purchase of goods and labour cost for the estimated work subsequently paid to the contractors upon completion of work. 88. One time maintenance cost of New Layouts For Power connections at the time of formation of new layouts, one time maintenance cost will be collected from the consumers. 89. Fee Collected towards I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibution licensee under the Electricity Act, 2003. Hence, the applicant would clearly fall within the ambit of definition of the term 'electricity transmission or distribution utility'. f. The applicant states that the said Exemption Notification does not define the terms 'transmission or distribution of electricity'. Accordingly, it is pertinent to analyze whether the other charges collected by applicant would be treated as consideration for the activity of 'transmission and distribution of electricity' and thereby covered under the said Entry of the Exemption Notification. g. The Applicant being the licensee holder for the Distribution transmission of electricity to end user has to develop and maintain an efficient, coordinated and economical distribution system. hence the applicant undertakes certain activities like Supervision, installation, repair and maintenance of meter, electric lines and other related activities. These services are directly related to the "Distribution of Electricity". The detailed list of activities done by the applicant is enumerated above. h. The applicant further states that as per section 2(30) of the CGST Act the said act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation fee, meter rent, testing fee, labour charges for shifting meters and shifting of service line, etc.. PERSONAL HEARING / PROCEEDINGS HELD ON 21.11.2019. 5. Sri B.0 Bhatt Advocate and duly authorised representative of the applicant company appeared for personal hearing proceedings held on 21.11.2019 & reiterated the facts narrated in their application. And representative took one month time to furnish the required documents. 6. FINDINGS & DISCUSSION: 6.1 We have considered the submissions made by the applicant in their application for advance ruling as well as the submissions made by Sri B.C. Bhatt, Advocate of the applicant during the personal hearing. We have also considered the issues involved, on which advance ruling is sought by the applicant, and relevant facts. 6.2 At the outset, we would like to make it clear that the provisions of both the Central Goods and Services Tax Act, 2017 and the Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act, 2017 and KGST Act, 2017) are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a refer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s Torrent Power Limited of, Gujarat High Court vide Special Civil Application NO. 5343 of 2018 dated 05-04-2018 = 2018 (5) TMI 1391 - GUJARAT HIGH COURT stating that Vide Circular No. 34/8/2018-GST dated 01.03.2018 was quashed. 6.8 The facts of the judgment is narrated that the ancillary charges collected by Electricity Distribution Company towards application fee, meter rent, other pre and post connection charges for shifting of lines, etc are covered by entry 25 of exemption notification number 12/2017-Central Tax (Rate) dated 28-06-2017 relating to transmission and distribution of electricity. Hence the same would constitute composite supply as per section 8 of the GST Act. 6.9 It is pertinent to note that the department has filed special leave petition vide Diary No(s). 24733/2019 dated 09-08-2019 = 2019 (8) TMI 779 - SC ORDER in the Honourable Supreme Court against the order passed by Honourable High court of Karnataka in the case of M/s Torrent Power Limited of, Gujarat High Court vide Special Civil Application NO. 5343 of 2018 dated 05-04-2018 = 2018 (5) TMI 1391 - GUJARAT HIGH COURT is at present pending for the decision 7. In view of the foregoing, we pass the followin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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