2025 (9) TMI 1595

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....0.06.2025 passed by the Appellate Joint Commissioner (ST), Hyderabad Rural Division, Hyderabad (Annexure P1). The order-in-original (Annexure P3) concerning the financial year 2019-2020 passed under Section 73 of the Telangana Goods and Services Tax Act, 2017 (hereinafter referred to as, "the Act"), imposed tax, interest and penalty under Section 73(9) of the Act and confirmed the demand. 3. Along with its appeal, the petitioner, a Concessionaire with the National Highways Authority of India (NHAI), had submitted service concession agreement, balance sheet for the year 2019-2020, GSTR-9 and GSTR-9C for the same year, GSTR-3B and GSTR-1 and the agreement entered with the KNR Constructions to execute the work. The petitioner had taken a pl....

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.... Financial Statements and the GST returns. This led to the issuance of show cause notice in Form DRC-01 from the Deputy Commissioner - Enforcement Wing, dated 23.02.2024. The adjudicating authority proposed to disallow the turnover reported as exempt in the GST returns filed by the petitioner for the financial year 2019-2020 and proposed to levy tax on the exempted turnover reported by the petitioner. The petitioner in its response explained as to why the differential amount of turnover (inadvertently reported as exempted turnover) was not subject to taxation during the financial year 2019-2020. The petitioner also got an opportunity to attend personal hearings. The petitioner, inter alia, contended that the adjudicating authority has state....

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....founded and without merit, since the petitioner had entered into a concession agreement under the HAM and not BOT annuity model. Moreover, the petitioner has not, at any point, either in its replies or otherwise, claimed GST exemption on annuity payments by categorizing the annuities under SAC 9967. The petitioner had neither made such a submission nor had it classified annuity payments under SAC 9967. The pre-commercial operation date was achieved in October, 2021. Subsequent to the COD, from the financial year 2021-2022 onwards, the petitioner has been receiving annuity payments from NHAI and has appropriately paid tax on these payments, classifying them under SAC 9954, which are verifiable through the copies of GSTR-1 and GSTR-3B post CO....

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....on 2(33) of the Act, the time of supply is determined by either the date of issuance of invoice or the receipt of payment, whichever is earlier, provided that the invoice is issued within the prescribed period or upon the completion of an event as specified in the contract. If the invoice is not issued as required, the time of supply then defaults to the date on which the service was provided or the payment was received, whichever is earlier. Therefore, according to the petitioner, the services in question fall under the scope of continuous supply of service and that the invoicing and time of supply should be regulated by the stipulations in Sections 31(5) and 13(2) of the Act. However, the adjudicating authority held that the time of suppl....