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TMI Blog2023 (12) TMI 832X X X X Extracts X X X X X X X X Extracts X X X X ..... s would be entitled to avail of credit for the same - There is merit in the said contention that the direction to deposit GST with this Court on a monthly basis may give rise to further complications. Since the impugned circular has been set aside and it is clarified that the supplies mentioned in the impugned circular are bundled supplies and form an integral part of the supplies of distribution of electricity, the said supplies are not chargeable to GST. Consequently, the petitioners are also not entitled to collect such charges from their customers. In this view, we consider it apposite to direct that any GST collected by the petitioners after 08.11.2023, be refunded to customers from whom the said GST has been collected. Application disposed off. - HON'BLE MR. JUSTICE VIBHU BAKHRU AND HON'BLE MR. JUSTICE AMIT MAHAJAN For the Through: Mr. Arvind Datar, Sr. Adv. Mr. Tarun Gulati, Sr. Adv, Mr. Anupam Varma, Mr. Manish Mishra, Mr. Nikhil Sharma, Ms. Manu Tiwari, Mr. Aditya Dhingra Mr. Ankur Mittal, Advs. For the Respondent Through: Mr. Kamal Digpaul Ms. Ishita Pathak, Advs. for Mr. Ajay Digpaul, CGSC. Mr. Harpreet Singh, SSC with Ms. Suhani Mathur Mr. Gurpreet Singh Gulat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The petitioners are essentially aggrieved by the issuance of the circular being Circular No. 34/08/2018-GST dated 01.03.2018 (hereafter the impugned circular ). In particular, the petitioners are aggrieved by the clarification issued at serial No. 4 of the impugned circular. The same is extracted below: 4. (1) Whether the activities carried by DISCOMS against recovery of charges from consumers under State Electricity Act are exempt from GST? (2) Whether the guarantee provided by State Government to state owned companies against guarantee commission, is taxable under GST? (1) Service by way of transmission or distribution of electricity by an electricity transmission or distribution utility is exempt from GST under notification No. 12/2017- CT (R), Sl. No. 25. The other 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 DISCOMS to consumer are taxable. (2) The service provided by Central Government/State Government to an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Notification No. 12/2017- CT (R) serial No. 25: 4. (1) Whether the activities carried by DISCOMS against recovery of charges from consumers under State Electricity Act are exempt from GST? (1) Service by way of transmission or distribution of electricity by an electricity transmission or distribution utility is exempt from GST under notification No. 12/2017- CT (R), Sl. No. 25. The other services such as,- Application fee for releasing connection of electricity; Rental Charges against metering equipment; Testing fee for meters/ transformers, capacitors etc.; Labour charges from customers for shifting of meters or shifting of service lines; charges for duplicate bill; provided by DISCOMS to consumer are taxable. The impugned summons dated 28.3.2018 is hereby set aside to the extent the petitioners are called upon to produce the documents listed at serial No. 5 of the annexure thereto, except clause - (vi); income from shifting of HT lines received from MEGA. Consequently, the respondents shall drop the proceedings under the Finance Act, 1994 as well as under the CGST/SGST Acts sought to be initiated by virtue of the impugned summons to the extent the same is based upon item No. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re a part and parcel of the service of distribution of electricity, which is exempted from payment of GST. 4. The petitioner submits that the services such as application fee for releasing connection of electricity, rental charges, testing fee, labour charges for shifting meters, etc. are not chargeable to GST. 5. The petitioner also claims that prior to issuance of the impugned circular, the petitioner being an electricity distribution company, was not charging any GST in respect of the aforesaid services. However, the petitioner had been compelled to collect such charges from the consumers, and pay the same to the GST authorities, by virtue of the impugned circular. 6. Paragraph No. 4 of the impugned circular was set aside by the Gujarat High Court in Torrent Power Ltd. v. Union of India: R/ Special Civil Application No. 5343 of 2018, decided on 19.12.2018 . Since paragraph No. 4 of the impugned circular has been quashed, the requirement of the petitioner to collect GST from its consumers and deposit the same with the concerned GST authorities does not arise. 7. As noted above, the petitioner was neither collecting nor depositing GST, in respect of the services in question, prior ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t would further complicate the issues. He submits that certain industrial consumers are entitled to avail Input Tax Credit in respect of the GST paid to the petitioners. He further submits that in the circumstances, the GST authorities would not receive the tax collected by the petitioners and yet certain other customers would be entitled to avail of credit for the same. 16. There is merit in the said contention that the direction to deposit GST with this Court on a monthly basis may give rise to further complications. 17. Since the impugned circular has been set aside and it is clarified that the supplies mentioned in the impugned circular are bundled supplies and form an integral part of the supplies of distribution of electricity, the said supplies are not chargeable to GST. Consequently, the petitioners are also not entitled to collect such charges from their customers. In this view, we consider it apposite to direct that any GST collected by the petitioners after 08.11.2023, be refunded to customers from whom the said GST has been collected. 18. This Court considers it apposite to finally dispose of the present petition with the aforesaid directions. 19. We clarify that nothin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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