Composite GST notices, mandatory limitation, and same-subject bar: HC upheld valid notices but quashed overlapping proceedings and unauthorised withho...
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GST levy on supply of free power questioned - whether free power supplied as compensation to States for distress caused by hydro power projects can be considered "consideration" for services rendered by States to attract GST. Held: Petitioner's contentions have force that free electricity may not constitute "consideration" but "compensation", raising doubt on leviability of GST. Respondents cannot treat free electricity as consideration for alleged services by State as supplier. Interim stay granted on further proceedings pursuant to Annexure P-1 dated 14.06.2024 considering petitioner is government company and huge liability imposed despite contrary view by Central Excise Department. Matter listed on 18.11.2024.
GST levy on supply of free power questioned - whether free power supplied as compensation to States for distress caused by hydro power projects can be considered "consideration" for services rendered by States to attract GST. Held: Petitioner's contentions have force that free electricity may not constitute "consideration" but "compensation", raising doubt on leviability of GST. Respondents cannot treat free electricity as consideration for alleged services by State as supplier. Interim stay granted on further proceedings pursuant to Annexure P-1 dated 14.06.2024 considering petitioner is government company and huge liability imposed despite contrary view by Central Excise Department. Matter listed on 18.11.2024.
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