TaxTMI 
TaxTMI 
2026 (1) TMI 1213
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....T on the amount received by the petitioner as petition fee, ARR processing fee and license fee. It is the case of petitioner that said amount is received for discharging functions under Section 86 of the Electricity Act, 2003, which are judicial, quasi-judicial and inherently of statutory nature. 2. Learned counsel for petitioner submits that controversy involved in this writ petition is identical to one as had arisen before Delhi High Court in W.P (C) 10680 of 2024 titled as Central Electricity Regulatory Commission Versus The Additional Director Directorate General of GST Intelligence (DGGI) and another, decided on 15.01.2025 along with connected matter. 3. After considering the arguments on behalf of petitioner, stand of respondent....
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....ficance is the definition of "business" and "consideration" as it appears in the statute. Section 2(17) defines "business" as follows:- "2. Definitions. In this Act, unless the context otherwise requires xxxx xxxx xxxx (17) "business" includes- (a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit; (b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a); (c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction; (d) supply or acquisiti....
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....respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government: Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply;" 27. The definition clauses referred to above assume significance in light of the language employed in Section 7 and which speaks of the supply of goods, services or both provided by a person for consideration being in the course or furtherance of business. When we revert to Secti....
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....uncils and other authorities which may come to be constituted in terms of Articles 371, 371A, 371J or the Sixth Schedule to the Constitution. A Commission which is constituted under the Electricity Act would undisputedly not fall within the ken of such authorities. 29. The word "consideration", in our considered opinion, would necessarily have to draw colour and meaning from Section 2(31) and which speaks of payment made in respect of, in response to or for the inducement of a supply of goods. Suffice it to note that it was not even remotely sought to be contended by the respondents that the payments in the form of fee as received by Commissions were an outcome of an inducement to supply goods or services. 30. More importa....
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....le. 32. Of significance is the respondent observing "Therefore, anything other than goods, money and securities will also include the activities of "regulating the tariff of generating companies owned or controlled by the Central Government, regulating the inter-State transmission of electricity, to issue licenses to persons to function as transmission licensee and electricity trader with respect to their inter-State operations; to levy fees for the purposes of this Act" falls under the scope of "Supply of Services" in para 6.1 of the impugned SCN. 33. We find ourselves unable to accept, affirm or even fathom the conclusion that regulation of tariff, inter-State transmission of electricity or the issuance of license would ....