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2019 (3) TMI 1955 - AAAR - GSTClassification and rate of GST - receipts received by the applicant on the count of distribution of electricity - Checking and testing of meters - Subsequent testing and installation other than initial testing - Disconnection and Reconnection of supply on consumers request or non-payment of bill - Replacement of Meters, Changing of position of meter board at the consumer's request - Checking of Capacitors (other than initial checking) on consumer's request - Charge for providing copy of MRI summary report - Maintenance charge for public lamps - Advance deposit by consumer with application for temporary LT / HT connection - Charge for special meter reading on the request of the Consumer - Service line charges and overhead line charges for release of new LT connection and for enhancement /reduction in sanctioned load - Recovery of cost of burnt meter from the Consumer - Registration cum processing fee - Works charges for release of new HT/EHT connection and for enhancement / reduction in sanctioned load - Security deposits at the time of release of new HT/ EHT connection and for enhancement in sanctioned load - Charges for shifting of service lines and meters etc. - Recovery of damage to material and dismantling charges on expiry of temporary connection - Replacement of Meters, Installation of meter and its subsequent removal in case of Temporary Connections - Supervision charges. HELD THAT:- The issue is squarely covered by Board's Circular 34/8/2018-GST dated 01.03.2018, para 4 of which fully exempts Service by way of transmission or distribution of electricity by an electricity transmission or distribution utility. However, it has also specifically excluded from this exemption, certain other ancillary services which are not directly or closely related to the said service. Thus to determine the taxability of the issues enumerated in the Table-I above, we will be guided by the referred Board's circular. In short, all services which are directly or closely related to generation and distribution of electricity will be completely exempted and any other ancillary service (akin to the ones included in the exclusion clause of the said para 4 of the Board's referred circular, will be taxed at the appropriate prevailing rate. The said clause of the circular has been struck down by Hon'ble Gujarat High Court, in an identical issue in the matter of TORRENT POWER LTD. VERSUS UNION OF INDIA [2019 (1) TMI 1092 - GUJARAT HIGH COURT]. However, it has been ascertained that the order has not been accepted by the concerned Commissionerate and a proposal for filing an appeal has already been forwarded to the Board. Accordingly, the said decision of the Hon'ble High Court cannot be cited as a precedent in the present case since the issue has not reached finality. Further, Charges for distribution and supply of electricity such as fixed charge, demand charge, energy charge, fuel charge adjustment, excess load demand charge, low power factor surcharge, low voltage surcharge/ high voltage rebate, wheeling charge, cross subsidy surcharge and additional surcharge etc., Delayed Payment Surcharge, Assessment against theft and unauthorized use of electricity, Security deposits at the time of release of new LT connection and for enhancement in sanctioned load, Security deposits at the time of release of new HT/ EHT connection and for enhancement in sanctioned load, Checking and testing of meters, Advance deposit by consumer with application for temporary LT / HT connection, Service line charges and overhead line charges for release of new LT connection and for enhancement /reduction in sanctioned load, Works charges for release of new HT/EHT connection and for enhancement / reduction in sanctioned load and Replacement of Meters, Installation of meter and its subsequent removal in case of Temporary Connections are exempt from tax.
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