TaxTMI 
TaxTMI 
TaxTMI 
2019 (3) TMI 1955
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.... for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the UKGST Act. BRIEF FACTS OF THE CASE 1. In the instant case the Party, M/s Uttarakhand Power Corporation Ltd., vide their application under sub-section (1) of Section 97 of the CGST/SGST Act, 2017 sought an Advance Ruling on the question of classification and rate of GST on various receipts received by the applicant on the count of distribution of electricity (as per Annexure-B of their application dated 23.08.2018 (received in the office of the Advance Ruling Authority for the State of Uttarakhand on 27.08.2018), the details of which are as under: TABLE-I S.No. Nature of Sums Collected/ Receipt Basis for Collection/ Receipt 1. Charges for distribution and supply of electricity such as fixed charge, demand charge, energy charge, fuel charge adjustment, excess load demand charge, low power factor surcharge, low voltage surcharge/ high voltage rebate, wheeling charge, cross subsidy surcharge and additional surcharge etc. Rate Schedule annexed with tariff order dated 21-03-2018. 2. Del....
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....in sanctioned load. UERC (Release of new HT & EHT Connections, Enhancement and Reduction of Loads) Regulations, 2008. 19. Charges for shifting of service lines and meters etc. Sometimes consumers request for these services. 20. Recovery of damage to material and dismantling charges on expiry of temporary connection. Regulation 2.2 (8) of the UERC (The Electricity supply Code-) Regulations, 2007. 21. Replacement of Meters - Installation of meter and its subsequent removal in case of Temporary Connections Schedule of Miscellaneous charges as annexed with tariff order dated 21-03-2018 22. Supervision charges Regulation 7 of UERC (Release of New LT Connections, Enhancement and Reduction of Loads) Regulations, 2013. Therefore, in terms of said Section 97(2)(a) & (e) of CGST/SGST Act, 2017, the said application was admitted. 2. Following the personal hearing given to the applicant on 30.10.2018, On perusal of Notification No.12/2017-Central Tax (Rate) dated 28th June, the Authority observed that intra state transmission or distribution of electricity by an electric transmission or distribution utility is covered under service code 9969 and attracts GST @ "nil". Howeve....
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....ces were taxable. He further observed that the said services were support services to transmission or distribution of electricity and should be treated as an incidental to transmission and distribution of electricity and the same shall be covered under composite supply. To bolster his point further he took reference from the following judgments: (a) NOIDA POWER CO. LTD. vs COMMISSIONER OF C. EX., NOIDA [2014 (033) STR 0383 (Tri. - Del.)] "for the purpose of billing the consumer for electricity consumed it is essential to install the electricity meter having capacity to withstand the load provided to the customer; any activity or service like erection, commissioning and installation of transmission towers and meters as also technical testing and analysis would constitute the activity of transmission and distribution by the service provider to the service receiver; and such service would be squarely covered under exemption provided under this notification." (b) Paschimanchal Vidyut Vitran Nigam Ltd. Versus Commissioner of Central Excise, Meerut [2012 (028) ST 0412 (Tri. - Del.)] On careful reading of the aforesaid notification we find that this notification exempts the servic....
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....ervices rendered by the applicant as detailed in Annexure-B, with both the members holding divergent views on the issues other than SI. No. 1, 2, 12, 14 & 18 of Annexure-B, a ruling has been made, whereby, in terms of Section 98(5) of the Act ibid, a reference to the Appellate Authority for hearing and decision on said issue has been made. PERSONAL HEARING An opportunity for personal hearing was granted to the applicant on 28-03-2019 which was attended by Shri Rajesh Gupta (FCA/LLB) on behalf of Uttarakhand Power Corporation Ltd. In addition to reiteration of the points covered in the grounds of appeal, he filed written submissions. He further stated that all activities undertaken by them are ancillary to the distribution of electricity and hence exempted from payment of GST. In the pre GST era also, they were not paying any taxes. He also stated that the Board's circular dated 01-03-2018, has been struck down by the High Court of Gujarat. He therefore prayed that all the activities undertaken by them should be held non taxable. DISCUSSION AND FINDINGS We have gone through the ruling dated 20.11.2018, all the relevant records and submissions made by the applicant during per....