Reverse-charge GST on request-specific road restoration applies, while public-function exemptions and cross-State refund sanctions provide no relief.
Request-specific road restoration performed by a public works department for a business pipeline network constitutes a taxable supply where charges reflect reciprocal restoration work, rather than compensation for breach or damage. Routine road maintenance as a public function does not extend non-supply or exemption treatment to customised services supplied to a business entity. Under reverse charge, the recipient bears GST liability for taxable government services; an unsubstantiated double-taxation plea or refund sanction granted to other State registrations does not establish refund entitlement. Electronically authenticated GST proceedings remain valid where the notice states the factual and legal basis, the recipient responds substantively, and no prejudice arises from absence of a physical DIN.
Issues: (i) Whether charges paid to the PWD for restoring roads cut for the appellant's pipeline network are consideration for a taxable supply rather than compensatory damages? (ii) Whether such road-restoration services are excluded as non-supplies or exempt as activities relating to functions entrusted to Panchayats or Municipalities? (iii) Whether the recipient was liable to GST under reverse charge and could claim refund on an allegation of double taxation? (iv) Whether refund orders issued to other registrations in different States bind the Tribunal or establish entitlement to refund? (v) Whether the show-cause notice and refund adjudication were invalid because of vagueness, absence of DIN, or breach of natural justice?
Issue (i): Whether charges paid to the PWD for restoring roads cut for the appellant's pipeline network are consideration for a taxable supply rather than compensatory damages?
Analysis: The payment arose from a voluntary, pre-arranged request for permission to cut public roads and for their subsequent physical restoration. The charges were computed according to the restoration work required, establishing reciprocal performance and consideration within Section 2(31) for a supply of services under Section 7(1). The transaction was not a payment for breach, liquidated damages, or unilateral compensation for injury or loss.
Conclusion: The charges are consideration for a taxable supply of road-restoration service, in favour of Revenue and against the assessee.
Issue (ii): Whether such road-restoration services are excluded as non-supplies or exempt as activities relating to functions entrusted to Panchayats or Municipalities?
Analysis: Routine maintenance of public roads may be a public function under Articles 243G and 243W, but the restoration was a customised, request-driven service performed for a business entity to facilitate its commercial pipeline activity. The expression "in relation to" cannot override the statutory exclusions applicable to government services supplied to business entities. Strict construction of exemption notifications precluded treating this commercial service as a non-supply or public-utility exemption.
Conclusion: The road-restoration service is neither excluded as a non-supply nor exempt under the relied-upon notifications, in favour of Revenue and against the assessee.
Issue (iii): Whether the recipient was liable to GST under reverse charge and could claim refund on an allegation of double taxation?
Analysis: Notification No. 13/2017-Central Tax (Rate) places the liability for taxable services supplied by government authorities to a business entity on the recipient under the Reverse Charge Mechanism. No clear evidence established that tax had been separately paid by the supplier under forward charge for the specific transaction; in any event, the statutory reverse-charge liability could not be displaced by a general plea of double taxation or revenue neutrality.
Conclusion: GST was validly payable by the recipient under reverse charge and no refund was due, in favour of Revenue and against the assessee.
Issue (iv): Whether refund orders issued to other registrations in different States bind the Tribunal or establish entitlement to refund?
Analysis: A refund sanction issued by a proper officer in another State does not operate as a binding precedent or res judicata against an independent appellate determination. An administrative order that does not conform to the applicable statutory requirements cannot create a binding entitlement in another jurisdiction.
Conclusion: Refund sanctions in other States do not bind the Tribunal or establish refund entitlement, in favour of Revenue and against the assessee.
Issue (v): Whether the show-cause notice and refund adjudication were invalid because of vagueness, absence of DIN, or breach of natural justice?
Analysis: The notice identified the factual and legal basis for denying the claimed exemption, and the detailed point-wise response demonstrated that the appellant had adequate notice and suffered no prejudice. The proceedings, including the notice, replies and orders, were processed through the authenticated electronic GST portal; consequently, the absence of a physical DIN did not impair the documents' authenticity or violate principles of natural justice.
Conclusion: The notice and adjudication were valid and were not vitiated by vagueness, absence of DIN, or breach of natural justice, in favour of Revenue and against the assessee.
Final Conclusion: The tax paid under the statutory reverse-charge scheme remains valid, and the claimed refund is unavailable.
Ratio Decidendi: Charges for government-performed, request-specific road restoration for a business entity constitute consideration for a taxable service; public-function non-supply and exemption provisions do not apply, and tax is payable by the recipient under reverse charge.