TaxTMI 
TaxTMI 
2022 (4) TMI 822
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....rit applicant herein preferred the Special Civil Application No.5343 of 2018 before this High Court and prayed for the following reliefs: "A. This Hon'ble Court may be pleased to issue a writ striking down and declaring the clarification issued in para 4 (1) of the impugned Circular No.34/8/2018-GST dated 1.3.2018 (annexed at Annexure A) by the Government of India as ultra vires the provisions of the GST Acts as well as the notifications issued thereunder: B. This Hon'ble Court may be pleased to declare that charges such as application fee, meter rent, testing fee, etc collected by the Petitioners towards activities directly and closely connected with the transmission or distribution for electricity are exempt from tax und....
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....he 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 Therefore, the fact that the exemption notifications came to be rescinded has no relevance inasmuch as all that the circular clarifies is what according to the Government of India would stand included in another service.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 interpretation would not c....
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.... any part thereof used for, or connected with, the generation, transmission, distribution or supply of electricity, except for electric meter and any electrical equipment, apparat-us 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 the defin....
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....e 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 sub-section (3) of section 66F of the Act, and would have to be treated in the same mann....
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....iling the Special Leave to Appeal No.24733 of 2019. The Supreme Court granted leave to appeal vide order dated 09.08.2019. The issue is now at large before the Supreme Court. 6. We take notice of the fact that the judgment of this High Court has not been stayed from its operation. It further appears that since the judgment delivered by this High Court is now a subject matter of challenge before the Supreme Court and the Supreme Court has granted leave to appeal, the writ applicant as of abundant caution started obtaining undertaking from the consumers as regards the service tax and GST. The writ applicant is of the view that in the event, if the Union succeeds before the Supreme Court then it will have to deduct service tax and/or GST an....
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....mplainant in para-6 of his submission dated 30/03/2021, cannot be allowed as the recovery and refund of GST are subject to the GST Act and rules framed thereunder. Moreover, considering the aspect that that no other legal or other complications may arise in the future as well as to avoid the non-compliance of the order passed by the Hon'ble Gujarat High Court, the Forum believes that it is fair and reasonable for the respondent company to obtain the undertaking only without recovering the amount of GST at present." 8. The matter thereafter, was carried further by the very same complainant before the Ombudsman of the Gujarat Electricity Regulatory Commission. The Ombudsman of the Commission has passed an order dated 20.12.2021 taking ....