AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (4) TMI 869
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....17. The applicant has sought advance ruling in respect of administration and Pre connection and Post Connection service of 91 services as shown below. S.N. Amount Collected by CESC for providing Various Services Description of Service ADMINSTRATION- FEES/AMOUNT COLLECED FOR ADMINSTRTIONN RELATED SUPPLY 1. RTI Application Fee Application Fee Collected from Information seekers as Prescribed by the Govt. for giving information to the applicant seeking Information under RTI Act. 2. Amount Collected towards providing information under RTI Act. Amount Collected from the Applicant seeking Information. as Prescribed by the Govt. for providing additional information under RTI Act. 3. Departmental Exam fees collected form employees of CESC/ KPTCL Exam fees collected form employees for appearing to the Exams conducted by department (CESC/KPTCL) for promotions as per departmental norms. 4. E.M.D-Earnest money Deposit Earnest money Deposit received (cash, cheque, BG) against tender notification as. As per terms and condition of the Tender, Deposit paid to company by vendors for applying for tender for various work contracted for improvement and en....
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....rt. The items will be given free of cost to the Contractor by CESC. Subsequently item will be replenished by the Contractor to CESC 15. Replacement of Assets during the Guarantee Period (Using Delivery Challan) The defective items like Transformers etc, are replace by the supplier of Goods under Delivery Challan without making any invoice. No additional payment is made as the asset is replaced within Guarantee period 16. Profit on sale of Stores Purchased Goods (Stores) are Accounted in Books of A/c under Written Down Value (WDV). When it is scrap materials sold, Invoice is prepared and applicable GST is paid. Sale proceeds shown separately. Where the Scraps are sold at a higher price than the WDV, the difference is accounted as profit in Books of Account under the Profit on Sale of Stores a/c head. It is only Book Adjustment 17. Depreciation withdrawn from Contribution / subsidies as per AS-12 In respect of Purchase of Capital goods like Transformers, Poles, Cables etc. the depreciation accounted earlier is reversed. This is only reversal entry. 18. Write-back of Interest Interest accounted/demanded earlier if found to be accounted incorrectly, ....
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....als 30. Advance on sale of scraps Advance paid to the company by the vendors before finalization of sale of scrap pending confirmation of sale. If the sale is not finalized the same amount will refunded to the vendors 31. Penalty recovered from supplier Bills Penalty recovered during payment of the suppliers bill for delay in work & delay in delivery of Goods/ under performance/supply of damaged Goods / Services as per terms and condition of contract/ work award 32. Stale Cheque If amount paid through Cheque by CESC as payment is not enchased or presented to bank by the vendor/ supplier/contractors/deposit refund/ service provider within due dates the cheque is cancelled or treated as stale cheque and amount is accounted as income if the same amount is not paid to the vendor/supplier/ contractors/ deposit refund/ service provider. 33. Transformer Rent Charges collected on Lending Transformer on temporary Basis to the consumers. 34. Rental From others Rent collected for using of CESC property like store yard/Buildings/ Poles for cable connection etc., from customers. 35. Sale of Scrap Amount collected for Sale of Burnt Meters, Da....
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....sconnection of Power supply services due to non-payment of Electricity charges within stipulated time as per KERC Regulations. 46. Reconnection Fee Amount collected from the consumers for Re-connection of Power when it is disconnected. Further the amount is collected in the Power Bill itself and not collected separately from the consumers 47. Disconnection / Reconnection Fees It is the Reconnection charges collected for non-payment of electricity bills for the earlier period. It is not Fees as mentioned earlier. Further the amount is collected in the Power Bill itself and not collected separately from the consumers 48. Tariff Change Fee Fee collected for Change of Higher Tariff to lower Tariff and vice-versa due to Change of purpose of usage of Electricity supply as per request from consumer. 49. Ledger Abstract Fee Amount collected for providing Ledger Extract of the installations power usage, billing, payment and other information for a specific period of time of consumer account as per consumer request. 50. CT Testing Fees (Current Transformer) Fees collected for testing of working conditions of current transformers at the time instal....
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....alysis of Meters to check the working condition of Meters. The testing can be made at consumer requests or if meter readers complaint of not working/ slow reading/ fast gripping etc at the time of billing. 61. Duplicate Bill Charges Chargers levied on issue of Duplicate Bill at consumer's request. i.e., if the original bill is lost by consumers, they can apply/ask for duplicate bill for any previous month. Charges is applied for every month Duplicate bill issued 62. Rebate- for collection of Electricity Tax Electricity Tax levied at the time of electricity billing and the same is paid to the Govt. If the Electricity taxes are paid to government within stipulated time CESC receives rebate on such Electricity Tax paid and account under the head as "Rebate for payment of Electricity Tax." in the Books of A/c 63. Cross subsidy charges Amount received from Govt. as subsidy for supply of power to certain Tariffs like Bhagya Jyothi, Power-looms, etc installations as stipulated by the Govt. 64. Any amount transferred to Misc. Revenue Ex:- Deposits, ACC, ISD, ASD, MSD, MBC. Deposit Amounts like ISD, ASD, EMD, etc collected from the consumers for conne....
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....er installation of Solar Roof Top system (SRTPV) in the consumer's premises, facilitation fee is collected from the consumers for Supervision Services provided by CESC from time to time. 74. Regularization of the un-authorized IP SET Infrastructures Charges Charges collected from Consumers for new connection/ regularization (Infrastructures Charges) of connection for providing Electricity supply to Irrigation Pump set. 75. Vendor Approval Fee Amount collected for providing approval of vendor for supply of Goods/Services for CESC who is qualified as per terms and conditions of the tender 76. Tender Application Fee Application Fee collected for applying quotations of tenders by the Vendors/Service Providers for supply Goods/Services to CESC. 77. Vendor Approval Fees Amount collected for providing approval of vendor for supply of Goods/Services for CESC who is qualified as per terms and conditions of the tender 78. Tender Application Fees Application Fee collected for applying quotations of tenders by the Vendors/Service Providers for supply Goods/Services to CESC. 79. Initial Security Deposit Initial Security Deposit collected....
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....of Installation Fee collected from the consumers for the physical Inspection of Installations like meter, capacitor, etc for supply of Electricity. 90. Rating / Re-Rating Charges Amount collected from Supplier/ Consumer for Rating/Re-Rating of Installation of Meter at the consumers request to verify the working condition of the Meter / meter rating 91. Supervision Charge Supervision charges collected from the consumers for supervising the execution of the Electrical works as Self execution work/DCW work. A 10% supervision charges collected on total estimate cost of the work. 3. The applicant company furnishes some facts relevant to the stated activity: a. The applicant company is a limited and engaged in distribution of electricity. In turn they procure the electricity from various power suppliers such as KPTCL, KPCL, NTPC, KAOGA, JSW, PTCL, PGCIL etc. In addition to that, the applicant buys power from industries and individuals and also by the Solar Power generators. b. The Company supplies and distributes the powers to the various consumers, such as Companies, Industries, Commercial Shops, Hospitals, Farmers Irrigation pumps, Individuals,....
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.... states that as per section 2(30) of the CGST Act the said activities comes under purview of "composite supply" means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply. Where in principal supply is electricity. From the above point of view the principal supply is distribution and transmission of electricity by licensee holder to the end-user hence whatever ancillary charges associated with supply transaction is being exempted from GST. 4. The applicant has referred to the following judgements in support of his contention: 4.1 In this regard the applicant has referred to the judgement rendered by Honourable Supreme court in the case of Doypack Systems (Pvt) Ltd. Vs. Union of India [1988 (36) ELT 201 (SC)] = 1988 (2) TMI 61 - SUPREME COURT, in which the Hon'ble Apex Court has analyzed that- Interpretation of Statute - Deeming provision - Intended to enlarge the meaning of a particular word. Deeming provision is intended to enl....
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....ally made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the corresponding similar provisions under the KGST Act. 6.3 On 19th December 2019 the applicant company has furnished classified status document in respect of administration and Pre and Post connection charges towards supply and distribution of electricity as enumerated above. 6.4 The applicant will fix and recover non-tariff charges as per provisions of the Karnataka Electricity Act 2003 and regulations of the KERC and Karnataka Electricity Regulatory Commission (KERC) 1999. 6.5 As per Circular no. 34/8/2018-GST dated 1st March, 2018 issued by Ministry of Finance, Government of India, it was clarified that the services by way of transmission or distribution of electricity by an electricity transmission or distribution utility is only exempted as per entry number 25 of notification No. 12/2017- CT (R) dated 28.06.2017 and other services provided by the applicant to consumer are taxable as under, - i. Application fee for releasing connection of electricity; ii. Rental Charges against metering equipment; iii. Testing fee for meters/ transformers, ca....