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2021 (2) TMI 557 - HC - GSTExemption from GST - transmission or distribution of electricity - Through circular it was clarified that certain activities shall be taxable - Vires of para 4(1) of the impugned circular No.34/8/2018-GST dated 1.3.2018 contrary to the Notification No.12/2017-CT (R) - Section 8 of the CGST Act - HELD THAT:- A simple reading of Sl.No.25 of exemption Notification dated 28.06.2017 and the corresponding notification leaves no room for ambiguity that entire package of services namely transmission or distribution of electricity has been exempted - Whereas a perusal of impugned Circular dated 01.03.2018, particularly para No.4(1) reveals that the CGST Council has sought to bring in tax-net five services enumerated therein, regardless of the fact that complete bundle or package of services namely transmission and distribution of electricity by an electricity transmission or distribution utility have been exempted. Attempt of chipping out some of the services, out of the complete package and treating them to be taxable is not only arbitrary and unreasonable but such exercise is also violative of provisions of Section 8 of the CGST Act - A circular cannot seek to clarify provisions of statutory notification dated 28.06.2017, which is otherwise unequivocal. There is no room for ambiguity or doubt, for which the GST Counsil was required to issue the circular. Respondents have as a matter of fact, levied tax on some of the services by carving them out that too by way of a circular under the cloak of a clarification. The writ petition succeeds - para 4(1) of the impugned Circular dated 01.03.2018 is hereby quashed - Application disposed off.
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