TaxTMI 
TaxTMI 
2023 (12) TMI 832
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....ion utility/licensee in accordance with the provisions of the Electricity Act, 2003 are exempt from levy of tax under the Central Goods and Services Tax Act, 2017 and Delhi Goods and Services Tax Act, 2017. (c) In the alternative, declare that declare the charges such as application fee, meter rent, testing fee, etc collected by the Petitioners are part of composite supply of which principal supply is the actual distribution of electricity and therefore the entire composite supply is exempt from tax under Entry 25 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 and Notification No. 12/2017-State Tax (Rate) dated 30.06.2017; (d) In the alternative, declare that the Clarification issued in para 4(1) of the Circular No. 34/8/2018-GST dated 01.03.2018 by the Government of India would be applicable prospectively. (e) Pass such further orders as may be deemed fit and proper in the facts and circumstances of the present case." 2. The Central Government in exercise of its powers under Section 11 of the Central Goods and Services Tax Act, 2017 (hereafter 'the CGST Act'), had issued a notification being Notification No.12/2017-Central Tax (Rate) ....
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....r the notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. 6. According to the petitioners, the charges as referred above are included in the charges for provision of services. It is contended that charges for metering equipment, testing fee for meter, labour charges from customers for shifting of meters, charges for bills and application for releasing connection of electricity are all integral part of services of distribution of electricity. 7. The learned counsel relies on the decision of the Division Bench of the Gujarat High Court in Torrent Power Ltd. v. Union of India: R/Special Civil Application No.5343 of 2018. In that case, the Court had considered a similar challenge and had set aside the impugned circular. 8. In the said case, the court had examined the contention that the services which were sought to be excluded from the cover of the "transmission or distribution of electricity by an electricity transmission or distribution utility", which were exempted from levy of GST by virtue of the notification dated 28.06.2017, were an integral part of the said services. The court, inter alia, concluded as under: "The services provided by the petitioner....
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....th the decision of the Gujarat High Court. 11. The learned counsel appearing for the Respondent Nos. 2 & 3, who has joined the present proceedings through video conferencing, concedes that the issue stands concluded in favour of the petitioners in view of the aforesaid decision in Torrent Power Ltd. v. Union of India (supra), and submits that the present petition may be disposed of in the terms of the said decision. He, however, submits that the Revenue has preferred an appeal against the said decision, which is pending consideration before the Hon'ble Supreme Court, and his submission may not be construed as foreclosing the rights of the Revenue to pursue the aforesaid remedies. 12. The present petition was listed on 08.11.2023 and this Court had passed the following order: 1. The petitioner has filed the present petition impugning paragraph No. 4 of a circular dated 01.03.2018, being Circular No. 34/8/2018- GST (hereafter 'impugned circular'). 2. Paragraph No. 4 of the said circular is set out below: 4. (1) Whether the activities carried by DISCOMS against recovery of charges from consumers under State Electricity Act are exempt from GST? (2) Whether....
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....cular. However, notwithstanding that paragraph No. 4 of the circular was quashed by the Gujarat High Court, the petitioner has continued to collect GST from its consumers and deposit the same with the GST authorities. Resultantly, the consumers are now burdened with the liability to pay GST in respect of services, which according to the petitioner are exempt from the levy of GST. 8. We find it difficult to accept that the petitioner could collect any GST from its consumers after paragraph 4 of the impugned circular had been set aside. 9. Mr. Gulati, learned Senior Counsel appearing for the petitioner, submits that the petitioner's Transfer Petition (Civil) No.2665/2019 is pending before the Hon'ble Supreme Court and is tagged with a batch of other matters, including the Civil Appeal No. 6278/2019 arising from the decision of the Gujarat High Court, and the Supreme Court is seisin of this issue. 10. In view of the above, we consider it apposite to defer the consideration of the present petition. 11. However, we direct that any GST collected by the petitioner hereafter, in respect of the services in question, shall be deposited in this Court on a m....