TaxTMI 
TaxTMI 
2018 (6) TMI 1196
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....or managing the billing and collections in the said areas. 1.2 They are engaged in the activity of distribution of electricity. For the aforesaid service, distribution charges are recovered from the customers. In order to distribute electricity, TPADL carries out various activities and makes separate recoveries from its customers. The list of various recoveries made are provided below: Type of Charges Description of Charges Application fees New consumer who applies for a new connection is required to pay an application fee. Re-connection charges For any reason if the line is dis-connected and the consumer wishes to re-connect, then re-connection charges are recovered Connection Transfer Fee In case of transfer of connection, a fee is charged from the consumer. Transfer means transfer to a new location or transfer of name Charges to be recovered for releasing temporary Connections Charges are recovered for releasing of temporary connections. The charges include advance against electricity consumption, security and application fees and service line charges. Charges for duplicate bill In case of duplicate bill required by consumer, charges are recovered Additional....
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....fting of service line In case of shifting of the service line from the pole to the home, charges for alteration/ shifting are recovered. Such charges may also be recovered in case of shifting of lines within the premises. Moreover, if there is pole near the consumer's home, the consumer may want the same to be shifted on account of safety issues or any alteration or extension of his house. Cheque dishonour fee In case the cheque given by the consumer is dishonoured, charges are recovered Delayed payment Charges In case of delay in payment by the consumers of the electricity bill, delay payment charges is collected from the consumers 1.3 They submitted that, the aforesaid non-tariff charges are fixed and recovered from the customers in accordance with the provisions of Electricity Act, 2003 and the regulations made in this behalf by the Rajasthan Electricity Regulatory Commission (State Commission) ('RERC'). RERC has prescribed various regulations in terms of powers granted to it under the Electricity Act, 2003 for determination of the tariff and non-tariff charges, specify the obligations of a licensee etc. 1.4 The applicant has also submitted that under the GST ....
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....tively. 3.4 Further, services by way of transmission or distribution of electricity by an electricity transmission or distribution utility have been exempted vide the Exemption Notification. The relevant extract of the Exemption Notification is reproduced hereunder: ''Transmission or distribution of electricity by an electricity transmission or distribution utility " 3.5 Serial No. 2(z) of the Exemption Notification defines electricity transmission or distribution utility as under: "electricity transmission or distribution utility" means the Central Electricity Authority; a State Electricity Board; the Central Transmission Utility or a State Transmission Utility notified under the Electricity Act, 2003 (36 of 2003); or a distribution or transmission licensee under the said Act, or any other entity entrusted with such function by the Central Government or, as the case may be, the State Government ". 3.6 Further, some of the relevant terms as defined under the Exemption Notification are provided below: * Serial No. 2(q) - "Central Transmission Utility" shall have the same meaning as assigned to it in clause (10) of section 2 of the Electricity Act, 2003 (36 of2003)....
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.... certain activities like installation, repair and maintenance of meter, electric lines/plant and other related activities. The detailed list of activities undertaken by TPADL are enumerated under para 3 above. The expenses incurred by TPADL for providing the aforesaid services are as a part and parcel of the activity of distribution of electricity as TPADL has to incur these expenses in order to provide the service of distribution of electricity. (D) Personal Hearing (PH) 5. In the matter personal hearing was given to applicant. Shri Varun Sharma, FCA , appeared as Authorised Representative of applicant for personal hearing on 05.05.2018. During the PH he reiterated the submission already made in application submitted on 12.02.2018 . Further during personal hearing the clarification issued under Circular no. 34/8/2018-GST dated 01.03.2018 issued vide F.No. 354/17/ 2018 was brought to the applicant's notice and issues raised in application for Advance Ruling were discussed in light of the provisions of clarification in detail . He argued that issues relating to Security deposits against electricity consumption and meters, cheque dishonour fees and delayed payment charges are....
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....tricity by an electricity transmission or distribution utility is exempt from GST under notificationNo.12/2017-CT (R), SI. No.25. The other services such as, - i. Application fee for releasing connection of electricity; ii. Rental Charges against metering equipment; iii. Testing fee for meters/ transformers, capacitors etc.; iv. Labour charges from customers for shifting of meters or shifting of service lines v. charges for duplicate bill; provided by DISCOMS to consumer are taxable. 7.3 REFUNDABLE SECURITY DEPOSITS - As per Section 2 (31) of the CGST Act, 2017 "consideration" in relation to the supply of goods or services or both includes- (a) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government: (b) the monetary value of any act or forbearance, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by....