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TMI Blog2024 (8) TMI 634X X X X Extracts X X X X X X X X Extracts X X X X ..... ted position that the petitioner is a distribution licensee within the meaning of the Indian Electricity Act, 2003 and it is otherwise entitled to the benefit of the notification dated 28th June, 2017. It would appear from the said notification that the same had been issued in terms of Section 11 (1) of the said Act whereunder the Central Government has exempted the intra-State supply of service of description specified in column (3) of the Table to the said circular and under serial number 25, column 3, transmission or distribution of electricity by an electricity transmission or distribution utility had been notified. The exemption granted in favour of the transmission or distribution licensee, though had been recognised, other services a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inter alia, challenging the show cause dated 28th March 2024 issued under Section 74 of the CGST Act, 2017 (hereinafter referred to as the said Act ). 2. The petitioner is engaged with the business of generation, transmission and distribution of electricity in the State of West Bengal and claims to be exempted from payment of Central Tax in respect of intra state supply of services of description as specified in serial no.25 of column 3 of the table in respect of the notification no. 12/2017-Central Tax (Rate) dated 28th June, 2017 issued by the Central Government, by power conferred under Section 11 (1) of the said Act, leviable under Section 9(1) of the said Act. 3. Mr. Majumder, learned senior advocate appearing for the petitioner, submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he distribution of electricity being the principal service/supply since the ancillary service cannot be rendered in isolation or independent of the principal service, the respondents could not have treated any of the services offered by the petitioner as a mixed supply, for the purpose of levy of tax on the ancillary services. 5. By placing reliance on a judgment delivered by the Hon ble High Court of Gujarat in the case of Torrent Power Ltd. v. Union of India (2019) 101 Taxmann.com 303 (Gujarat), it is submitted that the aforesaid circular has already been struck down by the Hon ble Gujarat High Court. The same view has been followed by the Hon ble Rajasthan High Court in the case of Jodhpur Vidyut Vitran Nigam Ltd. v. Union of India (2022 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he petitioner is a distribution licensee within the meaning of the Indian Electricity Act, 2003 and it is otherwise entitled to the benefit of the notification dated 28th June, 2017. It would appear from the said notification that the same had been issued in terms of Section 11 (1) of the said Act whereunder the Central Government has exempted the intra-State supply of service of description specified in column (3) of the Table to the said circular and under serial number 25, column 3, transmission or distribution of electricity by an electricity transmission or distribution utility had been notified. From the aforesaid show cause it would appear that the respondents had proceeded to invoke the extended period of limitation by placing relia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... annot be treated to be a clarification of the notification issued under Section 11 (1) of the said Act, since the circular is an independent document and has not been introduced by way of an explanation to exemption notification issued under Section 11 (1) of the said Act. Apart from the fact that the aforesaid clarification has not been issued in conformity with Section 11 (3) of the said Act, it would also appear from Section 8 of the said Act that tax liability on composite or mixed supply shall be determined in the manner provided in the said Act. As per the petitioner s contention the supply of service of distribution of electricity is covered by clause (a) of Section 8 of the said Act, in as much the ancillary works/supplies are subor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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