https://www.taxtmi.com/caselaws?id=404065 Services naturally bundled with an exempt supply of transmission or distribution of electricity retain the character of that principal exempt supply. The Rajasthan HC held that a circular could not isolate connection fee, meter rental, testing charges, shifting charges, duplicate bill charges and similar related services for taxation when they formed part of the composite exempt activity. A clarificatory circular cannot override an unequivocal exemption notification, and selective taxation of constituent services in a naturally bundled supply is arbitrary and unreasonable. Para 4(1) of the circular was therefore ultra vires and quashed, and tax recovery on its basis was restrained. en-us Fri, 05 Feb 2021 00:00:00 +0530 Mon, 24 Mar 2025 10:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=404065 Services naturally bundled with an exempt supply of transmission or distribution of electricity retain the character of that principal exempt supply. The Rajasthan HC held that a circular could not isolate connection fee, meter rental, testing charges, shifting charges, duplicate bill charges and similar related services for taxation when they formed part of the composite exempt activity. A clarificatory circular cannot override an unequivocal exemption notification, and selective taxation of constituent services in a naturally bundled supply is arbitrary and unreasonable. Para 4(1) of the circular was therefore ultra vires and quashed, and tax recovery on its basis was restrained. Case-Laws GST Fri, 05 Feb 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=404065