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Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
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AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
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Issues: Whether GST could be levied on fees received by an electricity regulatory commission for discharging statutory regulatory and quasi-judicial functions, and whether the impugned show cause notice was sustainable.
Analysis: The Court followed the binding view that the functions performed by an electricity regulatory commission are statutory, regulatory, and quasi-judicial in character, and are not activities in the nature of trade, commerce, profession, vocation, or any similar activity constituting business under the GST law. The receipts in the form of license fee, petition fee, and related charges were held not to be consideration for a supply made in the course or furtherance of business. The Court also relied on the exclusion for services rendered by a court or tribunal under Schedule III, and held that the mere description of such functions as support services could not override the statutory exemption. The impugned notice was therefore treated as unsustainable.
Conclusion: GST was not leviable on the fees received for discharge of the commission's statutory functions, and the show cause notice was quashed.
Final Conclusion: The writ petition succeeded and the challenged GST proceedings against the commission were set aside on the ground that the underlying activity was outside the taxable scope of supply.
Ratio Decidendi: Statutory regulatory and quasi-judicial functions performed by an electricity regulatory commission do not amount to supply in the course or furtherance of business, and fees received for such functions are not taxable under GST.
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