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2023 (12) TMI 832 - DELHI HIGH COURTExemption from GST - Validity of clarification issued in para 4(1) of the Circular No. 34/8/2018-GST dated 01.03.2018 by the Government of India - charges for metering equipment, testing fee for meter, labour charges from customers for shifting of meters, charges for bills - activities undertaken by a distribution utility/licensee in accordance with the provisions of the Electricity Act, 2003 are exempt from levy of tax or not - HELD THAT:- The petitioners have not deposited any amount with the Registry of this Court. Mr. Arvind Datar, learned Senior Counsel appearing the petitioners, submits that depositing the tax in this Court would further complicate the issues. He submits that certain industrial consumers are entitled to avail Input Tax Credit in respect of the GST paid to the petitioners. He further submits that in the circumstances, the GST authorities would not receive the tax collected by the petitioners and yet certain other customers would be entitled to avail of credit for the same - There is merit in the said contention that the direction to deposit GST with this Court on a monthly basis may give rise to further complications. Since the impugned circular has been set aside and it is clarified that the supplies mentioned in the impugned circular are bundled supplies and form an integral part of the supplies of distribution of electricity, the said supplies are not chargeable to GST. Consequently, the petitioners are also not entitled to collect such charges from their customers. In this view, we consider it apposite to direct that any GST collected by the petitioners after 08.11.2023, be refunded to customers from whom the said GST has been collected. Application disposed off.
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