9911796707
TMI Blog2020 (1) TMI 1431X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd, Shakti Bhawan, 14-A, Ashok Marg, Lucknow, Uttar Pradesh (hereinafter referred to as the "appellant") against the Advance Ruling Order No. 37 dated 05.08.2019 issued by the Authority for Advance Ruling, Uttar Pradesh. At the outset, we would like to make it clear that the provisions of both the CGST Act and the UPGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act, 2017 would also mean a reference to the same provisions under the UPGST Act, 2017. Brief Facts of the Case 1) M/s Uttar Pradesh Power Transmission Corporation Limited, Shakti Bhawan, 14-A, Ashok Marg, Lucknow, Uttar Pradesh - 226020 (the appellant) is a registered as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iii. The exemption given under Entry No. 25 of the exemption notification for services by way of transmission or distribution of electricity by an electricity transmission or distribution utility will not be applicable on applicant. iv. The applicant is not eligible to claim input tax credit with regard to undertaking "Deposit Works" i.e. creating infrastructure for electricity transmission. 5) Being aggrieved with the Order no. 37 dated 05.08.2019, the appellant filed this appeal application before us. Grounds of appeal submitted by the appellant:- 6) The appellant made the following submissions: 6.1) The only reason cited in the impugned order is that such charges for deposit work are collected as non-tariff charges only from custo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se, it may be noted that merely because the department is contemplating to file an appeal to Supreme Court against an order of High Court or even if such appeal filed is pending before Supreme Court, the binding effect of the order of High Court does not lose its credence unless reversed by the Supreme Court. 6.7) The appellant understands that the Deposit Work undertaken by it is exempt from payment of GST vide the exemption given to transmission or distribution of electricity by an electricity transmission or distribution utility. To this extent, the Impugned Order passed by the Authority is not sustainable and the same is liable to be set aside. 7) The appellant was granted personal hearing on 9th January 2020 and 23rd January 2020. Mr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a. There should be two or more supplies, b. Supplies should be naturally bundled, c. Supplied in conjunction with each other in ordinary course of business. Here the Supply of Electricity is a continuous supply while the other service required for development of transmission facilities, supervision charges etc. are not continuous supplies. Supply of electricity can also be made without provisions of these services. These services are provided by the appellant on specific request of the customers and not provided in its normal course of business to all the consumers. Therefore, I am of the opinion that these services, referred as "Deposit work" by the appellant, are not naturally bundled with the supply of electricity. These are indepen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices of transmission or distribution of electricity and exemption given under Entry No. 25 of the exemption notification for services by way of transmission or distribution of electricity by an electricity transmission or distribution utility will not be applicable on applicant. 10) Further, the views of the Member (SGST) are as under:- 10.1) Sub Section 1 of Section 43 (Duty to supply on request) of the Electricity Act, 2003, defines that:- "Licensee, shall, on an application by the owner or occupier of any premises, give supply of electricity to such premises, within one month after receipt of the application requiring such supply. Provided that where such supply requires extension of distribution mains, or commissioning of new su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with transmission and distribution of electricity, the same is covered by the exemption for transmission and distribution of electricity, extended under the relevant notification". Further, Hon'ble High Court of Gujrat, in its Judgment dated 19th December 2018, in the case of M/s Torrent Power Ltd. Vs. Union of India, has already clarified that "The "Meaning of "Transmission and distribution of electricity" does not change either for the negative list regime or the GST regime. Accordingly, the services which stood included within the ambit of transmission and distribution of electricity during the pre-negative list regime cannot now be sought be excluded by merely issuing a clarificatory circular, that too, with retrospective effect". O ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
