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2019 (3) TMI 917 - AAAR - GSTLevy of GST - valuation - order of AAR challenged - collection of delayed payment charges - cheque dishonor fee - tolerating the situation of dishonor of cheques - inclusion as payment of consideration for supply of electricity - Condonation of delay in filing appeal - Section 100(2) of the CGST Act - case of appellant is that the Taxation matter of the appellants are looked after by Mr. Kailash Mali. Since, Mr. Kailash Mali was busy in the Quarterly Audit, the Appeal against the impugned Advance Ruling could not be filed within the aforementioned time limit - Held that:- The delay is considered reasonable and is condoned. Levy of GST - delayed payment charges collected from the consumers for delay in payment of consideration for supply of electricity - Section 15(2) of the CGST Act, 2017 - Held that:- The value of supply is the consideration charged by the appellants from the consumers of electricity on account of consumption of electricity by them. Coming to the taxability of the supply of electricity, we find that electrical energy has been classified under tariff item No. 27160000 under Customs Tariff Act, 1975 and value of its supply has been exempted vide entry No.104 of the notification No. 02/2017- Central Tax (Rate) dated 28.06.2017 - As per Section 15(2) ibid, delayed payment charges should form part of the value of supply of electricity. When value of supply of electricity itself stands exempted by virtue of the above exemption notification dated 28.06.2017 incremental value (i.e. consideration for delalyed payment of the electricity bills as discussed above) would also remain exempted. Levy of GST - cheque dishonor fee collected by the appellants - Held that:- If any person tolerates any act or a situation and recovers a certain amount for such tolerance then it is supply of service. In the instant case, the appellants is tolerating the situation of dishonor of cheques, tendered by the consumers of electricity for payment of electricity bill, by charging certain amount from the consumers, hence, it is a supply of service in terms of the above clause 5(e). Needless to mention that Banks are also paying GST on the charges (by whatever name) received from customers when their cheques gets dishonoured - cheque dishonor charges, being a supply of service and not exempted anywhere, appropriate GST is chargeable on the value of its supply.
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