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TMI Blog2019 (3) TMI 1955X X X X Extracts X X X X X X X X Extracts X X X X ..... cum processing fee - Works charges for release of new HT/EHT connection and for enhancement / reduction in sanctioned load - Security deposits at the time of release of new HT/ EHT connection and for enhancement in sanctioned load - Charges for shifting of service lines and meters etc. - Recovery of damage to material and dismantling charges on expiry of temporary connection - Replacement of Meters, Installation of meter and its subsequent removal in case of Temporary Connections - Supervision charges. HELD THAT:- The issue is squarely covered by Board s Circular 34/8/2018-GST dated 01.03.2018, para 4 of which fully exempts Service by way of transmission or distribution of electricity by an electricity transmission or distribution utility. However, it has also specifically excluded from this exemption, certain other ancillary services which are not directly or closely related to the said service. Thus to determine the taxability of the issues enumerated in the Table-I above, we will be guided by the referred Board s circular. In short, all services which are directly or closely related to generation and distribution of electricity will be completely exempted and any other ancillar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to as "the CGST Act and UKGST Act"), vide Ruling No-/2018-19 dated 20.11.2018 passed against application made by M/s Uttarakhand Power Corporation Ltd. At the outset, we would like to make it clear that the provisions of both the CGST Act and the UKGST Act 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 reference to the same provisions under the UKGST Act. BRIEF FACTS OF THE CASE 1. In the instant case the Party, M/s Uttarakhand Power Corporation Ltd., vide their application under sub-section (1) of Section 97 of the CGST/SGST Act, 2017 sought an Advance Ruling on the question of classification and rate of GST on various receipts received by the applicant on the count of distribution of electricity (as per Annexure-B of their application dated 23.08.2018 (received in the office of the Advance Ruling Authority for the State of Uttarakhand on 27.08.2018), the details of which are as under: TABLE-I S.No. Nature of Sums Collected/ Receipt Basis for Collection/ Receipt 1. Charges for distribution and supply of electricity such as fixed charge, demand charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... release of new HT/EHT connection and for enhancement / reduction in sanctioned load. UERC (Release of new HT & EHT Connections, Enhancement and Reduction of Loads) Regulations, 2008. 18. Security deposits at the time of release of new HT/ EHT connection and for enhancement in sanctioned load. UERC (Release of new HT & EHT Connections, Enhancement and Reduction of Loads) Regulations, 2008. 19. Charges for shifting of service lines and meters etc. Sometimes consumers request for these services. 20. Recovery of damage to material and dismantling charges on expiry of temporary connection. Regulation 2.2 (8) of the UERC (The Electricity supply Code-) Regulations, 2007. 21. Replacement of Meters - Installation of meter and its subsequent removal in case of Temporary Connections Schedule of Miscellaneous charges as annexed with tariff order dated 21-03-2018 22. Supervision charges Regulation 7 of UERC (Release of New LT Connections, Enhancement and Reduction of Loads) Regulations, 2013. Therefore, in terms of said Section 97(2)(a) & (e) of CGST/SGST Act, 2017, the said application was admitted. 2. Following the personal hearing given to the applicant on 30.10.2018, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcept 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) Per Shri Amit Gupta -as regard to services mentioned in Annexure-B of the application filed by the applicant, all the services were taxable. He further observed that the said services were support services to transmission or distribution of electricity and should be treated as an incidental to transmission and distribution of electricity and the same shall be covered under composite supply. To bolster his point further he took reference from the following judgments: (a) NOIDA POWER CO. LTD. vs COMMISSIONER OF C. EX., NOIDA [2014 (033) STR 0383 (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 exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed use of electricity; 4. Security deposits at the time of release of new LT connection and for enhancement in sanctioned load; 5. Security deposits at the time of release of new HT/ EHT connection and for enhancement in sanctioned load; But as regard to other services rendered by the applicant as detailed in Annexure-B, with both the members holding divergent views on the issues other than SI. No. 1, 2, 12, 14 & 18 of Annexure-B, a ruling has been made, whereby, in terms of Section 98(5) of the Act ibid, a reference to the Appellate Authority for hearing and decision on said issue has been made. PERSONAL HEARING An opportunity for personal hearing was granted to the applicant on 28-03-2019 which was attended by Shri Rajesh Gupta (FCA/LLB) on behalf of Uttarakhand Power Corporation Ltd. In addition to reiteration of the points covered in the grounds of appeal, he filed written submissions. He further stated that all activities undertaken by them are ancillary to the distribution of electricity and hence exempted from payment of GST. In the pre GST era also, they were not paying any taxes. He also stated that the Board's circular dated 01-03-2018, has been struck down by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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