2024 (6) TMI 605

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....Act of the Tamil Nadu Legislature for the provision of water supply and sewerage in the Greater Chennai area. Pursuant to an inspection, summons was issued to the petitioner in September 2021. The petitioner replied thereto. On account of not being satisfied with such reply, a show cause notice was issued to the petitioner on 27.09.2023. Such show cause notice was replied to on 27.10.2023. Eventually, the order impugned herein was issued on 22.12.2023. 2. Learned counsel for the petitioner invited my attention to Notification No.12/2017 - Central Tax (Rate) dated 28.06.2017 (Notification No.12/2017). He pointed out that Notification No.12/2017 provides for an exemption as regards services provided by a governmental authority, including a....

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....nkers at commercial and dynamic rates to commercial establishments and large industrial units. Therefore, he contends that the impugned order contains no infirmity in as much as the petitioner is engaged in a composite supply and the respondent correctly identified the principal supply from and out of such composite supply. By referring to Notification No.11/2017 - Central Tax (Rate) dated 28.06.2017, learned senior standing counsel contends that the distribution of water is subject to GST since it falls under "Heading 9969". He submits that the respondent concluded that the petitioner was supplying purified water, and that such factual determination cannot be interfered with in course of these proceedings. 4. On perusal of the impugned ....

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....t the conclusion that the principal supply is through mobile units at commercial rates. As a corollary to the above conclusion, the adjudicating authority further concluded that the supply does not fall within the scope of the exemption notification. Since such conclusion was arrived at without differentiating between the services provided by the petitioner, the matter requires re-consideration. 6. Although a remand is warranted to enable reconsideration of both the applicability of exemption notifications and the conclusion regarding principal supply, it is also necessary to balance the interest of CMWSSB and revenue interest. Upon considering all relevant factors, I am of the view that the petitioner should remit a sum of Rs. 3 Crore. ....