TaxTMI 
TaxTMI 
2021 (2) TMI 557
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....petitioner, the services of distribution and supply of electricity fall in negative list of the services as declared by the Central Government vide Notification No.12/2017 dated 28.06.2017. Relevant entry reads thus : 25 Heading 9969 Transmission or distribution of electricity by an electricity transmission or distribution utility. Nil Nil 3. The petitioner has challenged Circular dated 01.03.2018, particularly Clause 4(1) thereof, which was issued by the Department of Revenue on the basis of recommendations of GST Council made in its meeting held on 9th, 10th and 13th January, 2018. It is to be noted that by way of this clarification following services provided by the DISCOMS have been held to be taxable:- (i) ap....
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....d. Vs. Union of India, has struck down para 4(1) of the impugned circular No.34/8/2018-GST dated 1.3.2018 being contrary to the Notification No.12/2017-CT (R) and ultra vires the provisions of Section 8 of the CGST Act. 7. Mr. Rajvendra Saraswat, learned counsel for the respondents, on the other hand, argued that the services mentioned in para No.4(1) of Circular dated 01.03.2018 cannot be said to be services relating to transmission or distribution of electricity and thus, the petitioner is liable to pay tax on such services. 8. He informed that against the judgment of Gujarat High Court in Torrent Power Ltd. (Supra), a SLP has been filed by the Union of India and leave has been granted by Hon'ble the Supreme Court. 9. Heard. 1....
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.... - As per the circular dated 7th December, 2010, the reason for saying that supply of electricity meters for hire to consumers is covered by the exemption notification is that such service is an essential activity having direct and close nexus with transmission and distribution of electricity. This circular only provides an interpretation of when a service would stand included in another service, namely, when such service is an essential activity having direct and close nexus with the exempted activity. Therefore, the fact that the exemption notifications came to be rescinded has no relevance inasmuch as all that the circular clarifies is what according to the Government of India would stand included in another service. Such interpret....
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....pliance or any part thereof used for, or connected with, the generation, transmission, distribution or supply of electricity, except for electric meter and any electrical equipment, apparatus or appliance under the control of a consumer. Sub-section (2) of section 43 of the Electricity Act casts a duty upon the licensee to provide, if required, electric plant or electric line for giving electric supply to the premises. Therefore, providing electric line and electric plant are elements of service which are naturally bundled in the ordinary course of business, with the single service of transmission and distribution of electricity which gives the bundle its essential character. The only related service which does not fall within the ambit of ....
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....the bundle its essential character and where the services are not naturally bundled in the ordinary course of business, the same is required to be treated as provision of the single service which results in highest liability of service tax. Accordingly, where the services are naturally bundled in the ordinary course of business and the single service which gives such bundle its essential character is exempt from tax, the entire bundle will have to be treated as provision of such single service. - In respect of the period falling under the negative list regime, the services in question would fall within the ambit of bundled services as contemplated under subsection (3) of section 66F of the Act, and would have to be treated in the s....
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....l.No.25. The other services such as.- i. Application fee for releasing connection or electricity; ii. Rental Charges against metering equiptment ; p iii. Testing fee for meters/transformers, capacitors etc.; iv. Labour charges from customers from shifting meters or shifting of service lines; v. charges for duplicate bill; provided by DISCOMS to consumer are taxable. The impugned summons dated 28.3.2018 is hereby set aside to the extent the petitioners are called upon to produce the documents listed at serial No. 5 of the annexure thereto, except clause - (vi); income from shifting of HT lines received from MEGA. Consequently, the respondents shall drop the proceedings under the Finance Act, 1994 as well as under the CGST/S....