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TaxTMI 
TaxTMI 
TaxTMI 
2020 (2) TMI 549
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....ion of electrical energy to various licensees within the State of Uttar Pradesh. 3. The Applicant has submitted application for Advance Ruling dated 2-5-2019 enclosing duly filled Form ARA-01 (the application form for Advance Ruling) along with annexure and attachment. 4. The Applicant in his application sought clarification and Advance Ruling as follows :- (i) Whether the Deposit Work undertaken by Applicant is an integral part of supply of services of transmission or distribution of electricity? (ii) Whether the Deposit Work undertaken by Applicant is ancillary to the principal supply of transmission or distribution of electricity? (iii) Whether the exemption given under Entry....
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....d then, the distribution licensee is entitled to recover the cost from consumer for the same. The Applicant, on request of the distribution company, would lay down the required infrastructure and would recover the cost from the consumer directly. This activity of the Applicant has been referred as Deposit Work. The above cost is not made part of tariff charges or transmission charges for the sole reason that this relates to individual person or class of persons which can be easily identified and hence, this recovery is made directly from such persons or class of persons. In case such cost is considered while determining the tariff charges then, this will spread over to all the recipients which may not be appropriate for other consumers who ....
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....ves on behalf of applicant appeared for hearing. During the personal hearing they submitted a detailed written submission and stated that as per their understanding Non-tariff charges are integral part of transmission service provided by them. It was also submitted that the issue of Credit or Exemption may also be considered while taking the decision. Discussion and finding 8. We have gone through the submission made by the applicant and examined the detailed explanation submitted by them. We observe that the question sought by the applicant is - (a) Whether the Deposit Work undertaken by Applicant is an integral part of supply of services of transmission or distribution of electricity (b) Whethe....
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....id service and the said amount is recovered as non-tariff charge. This itself shows that the transmission of electricity is independent of depository work under taken by the appellant. 10. The applicant has placed reliance on the decision of Hon'ble Gujarat High Court in the case of Torrent Power Ltd. v. Union of India reported at 2018 (17) G.S.T.L. 183 (Guj.). In this regard we observe that the department is contemplating to file SLP before the Hon'ble Supreme Court of India against the said order. 11. Further, vide the Circular No. 34/8/2018-GST, dated 1-3-2018, issued vide F. No. 354/17/2018, as regard to the activities carried by the DISCOMS against recovery of charges from consumers under State Electricity Act....
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....frastructure for electricity transmission", we noticed that : (a) the Applicant, on request of the distribution company, would lay down the required infrastructure and would recover the cost from the consumer directly. (b) In the Annexure-Il i.e. "Statement containing applicant's interpretation of Law and/or facts, as the case may be, in respect of the question(s) on which advance ruling is required" the applicant has itself admitted that they does not qualify to be eligible to claim ITC, however in the submission made by the applicant at the time of personal hearing, they have submitted that the deposit work undertaken by them may qualify to be construction of immovable property, and the said constructed property will....