AI Drafter 
TaxTMI 
TaxTMI 
2022 (2) TMI 829
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.... 271019, iii. Currently, M/s. Dakshinanchal Vidyut Vitran Nigam Limited, Agra ('DVVNL') is the licensed electricity distribution company in the area of IOCL Mathura and hence, supplying the electricity to it through grid at 220KV Voltage level. iv. The Applicant applied for 72MW bulk power at 220KV voltage level vide letter dated 28.11.2017 to DVVNL, which was sanctioned vide letter dated 14.06.2018 from two different sources i.e. Math, Mathura and Pili Pokhar, Agra. It was informed that the demand would be fulfilled by erecting one 220/33 KV transmission line, 3*60 mvA GIS substation, double circuit line and two bays. v. Transmission function within the state of Uttar Pradesh is undertaken by M/s Uttar Pradesh Power Transmission Corporation Limited (for short 'UPPTCL'), incorporated in 2006, which is notified as the State Transmission Utility of Uttar Pradesh, vide Notification No. 122/U.N.N.P./24-07 dated 18.07.2007. vi. For an uninterrupted power supply at desired voltage sanctioned by DVVNL, it is required to have a transmission line and hybrid bay erected, before the supply of power at desired voltage level. vii. The entire ....
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....on the aspects covered under sub-clauses of Section 97(2), but can also be a question relating to such aspects. Reliance is placed on decision of Hon'ble Supreme Court in Union of India v. Vijay Chand Jain, AIR 1977 SC 1302, wherein it was held that the phrase 'in respect of' admits of a wide connotation and is used in the sense of being 'connected with'. (ii) It needs to be determined whether the services supplied by UPPTCL to the Applicant are exempt from payment of tax, in order to determine the eligibility of the Applicant to avail ITC of tax paid thereon, if any. Such question is specifically covered under Section 97(2)(d) of the UPGST Act and thus, an application seeking advance ruling on such question is maintainable. (iii) the Applicant and UPPTCL both are PSUs and the liability to deduct TDS under Section 51 arises only on payments made for taxable services. In such a case, thus, the liability of the Applicant to deduct TDS on payments made to UPPTCL can be determined, only if the GST is payable on the supplies made by UPPTCL. The question is specifically covered under Section 97(2)(b) of the UPGST Act, being in respect of applicabilit....
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.... utility". (xii) The Electricity Act defines the term 'Transmission Licensee' under Section 2(73) as under: "2(73) transmission licensee means a licensee authorized to establish or operate transmission lines". (xiii) The Electricity Act also defines the term 'Transmission Line' in the following manner: 2(72) transmission lines means all high pressure cables and overhead lines (not being an essential part of the distribution system of a licensee) transmitting electricity from a generating station to another generating station or a substation, together with any step-up and step-down transformers, switch-gear and other works necessary to and used for control of such cables or overhead lines, and such buildings or part thereof as may be required to accommodate such transformers, switch-gear and other works. (xiv) Further, Electricity Act defines 'Distribution Licensees' under Section 2(17) as under: "2(17) Distribution licensees means a licensee authorized to operate and maintain a distribution system for supplying electricity to the consumers in his area of supply". (xv) 'Distribution system' is defined under....
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....n company to recover the cost of service line, etc. and system loading charges as a cost of servicing an enhancement of load to the licensee. (xxi) It may also be noted that the construction and development of a transmission system within a state is a function entrusted to a transmission company or a state transmission utility. For this purpose, UPERC has prescribed UP Electricity Grid Code, 2007 and Uttar Pradesh Electricity Regulatory Commission (Grant of Connectivity to intra-state Transmission System) Regulations, 2010. (xxii) The said Regulations, provides that a distribution licensee, seeking connectivity for new/modified/augmented sub-station or generating station and/or electric line at voltage above 33 kV may make an application to transmission licensee. (xxiii) In light of the present transaction, the Applicant requires the enhanced load, for which certain infrastructure is required to be developed by UPPTCL. The statute governing the distribution and transmission of electricity in the State of Uttar Pradesh, authorizes UPPTCL to recover the costs for developing this additional infrastructure for the Applicant. Accordingly, the Deposit Wor....
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....y, unreasonable and being violative of provision of Section 8 of the CGST Act. (xxix) In understanding of the Applicant, if answer to Question No. 1 is in affirmative that the services supplied by UPPTCL to the Applicant are exempt from payment of GST, the Applicant shall not be eligible to avail any ITC thereon. (xxx) However, if the answer to Question No. 1 above is in negative, i.e. that the services supplied by UPPTCL to the Applicant are chargeable to GST and not exempt, the applicant is entitled to claim ITC of the tax charged on such Deposit Work as per the understanding of the Applicant as (a) Applicant has received a tax invoice; (b) returns in GSTR-1 are filed by the supplier; (c) service of deposit work is received by the Applicant; (d) tax charged by UPPTCL is paid to the Government; and (e) returns in GSTR-3B is filed by the Applicant. (xxxi) Further, the restrictions on claiming ITC, as specified under Section 17 of the UPGST Act, are not applicable to facts of the present case as the property in the infrastructure developed by UPPTCL is retained by UPPTCL only and is not transferred to the Applic....
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....No. 25 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. (vi) applicant is not eligible to claim ITC of the tax paid on supplies received from UPPTCL. (vii) a proviso was inserted to notification No. 50/2018-Central Tax dated 1309.2018 vide Notification No. 61/2018-Central Tax dated 05.11.2018 with effect from 01.10.20189 which provided that- "Provided further that nothing in this notification shall apply to the supply of goods or services or both from a public sector undertaking to another public sector undertaking, whether or not a distinct person, with effect from the 1st day of October, 2018." (regarding third question). (viii) the questions raised in application are not pending or decided in the applicants case. 7. The applicant was granted a personal hearing on 09.11.2021 which was attended by Shri S.K. Pathak, DGM Finance, Shri Mukul Jain, Sr. Finance Manager and Shri Narendra Singhvi, Advocate during which they reiterated the submissions made in the application of advance ruling and also furnished copies of following case laws- (1) State of Karnataka Vs Azad Coach Builders Pvt. Ltd-2010 (262) ELT 32(SC). ....
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....From the above definition of advance ruling, it is evident that an applicant can seek an Advance Ruling only in relation to supply of goods or services or both undertaken or proposed to be undertaken by them. In the instant case, the supply is being undertaken by UPPTCL and the applicant is the only recipient of supply. Accordingly, this question is not liable for admission before this authority and therefore not admitted for consideration on merits of the case. 12. We find that the in second question, the applicant have sought ruling as to whether the applicant is eligible to claim Input Tax Credit (ITC) of the tax paid on services received from UPPTCL and have used prefix 'subject to above' before the question. If an action or event is subject to something, it needs something to happen before it can take place. It means the second question is subject to answer of first question. If the services supplied by the UPPTCL to the applicant are exempt, then there is no question of input tax credit of the same. The question of input tax credit only arises, when the services supplied by the UPPTCL to the applicant are taxable. As we have not admitted the first question for the ....