2018 (5) TMI 1391 – GUJARAT HIGH COURT – 2018 (17) G. S. T. L. 183 (Guj.) – Levy of GST on Supply of electricity meters for hire – Applicability of circular issued during the service tax regime, to the GST regime when the main activity is exempt under both the regime – Summons issued for calling for information and documents – Exemption from service tax – transmission and distribution of electricity by an electricity transmission or distribution utility. – Applicability of new clarification dated 1.3.2018 over clarification dated 7.12.2010 – Demand can be raised w.e.f 1.3.2018 or w.e.f. 1.7.2017.
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HC granted interim relief – Till further orders, the petitioners shall not have to reply to such summons dated 28.3.2018. – R/Special Civil
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on and distribution of electricity, the same is covered by the exemption for transmission and distribution of electricity, extended under the relevant notifications . Thus the petitioners previously did not have to recover and pay service tax on transmission and distribution of electricity including the other incidental services provided by them. In the new GST regime also the exemption has been provided in similar terms, as earlier, under heading 9969 where the exemption is for the following service : Transmission or distribution of electricity by an electricity transmission or distribution utility However, for the incidental or connected services, the Government of India has now issued a clarification dated 1.3.2018 in which it is provide
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172018 besides other information. Counsel for the petitioner submitted that when the exemption granted to the electricity companies under the earlier service tax regime has been continued under GST regime, the Government's clarification in connection with the incidental services cannot be changed. In any case, the clarification cannot operate retrospectively and at any rate cannot apply to a period prior to introduction of GST. The action of the authority to call for information for the period as far back as the financial year 20122013 is therefore, wholly unjustified. Notice returnable on 3.5.2018. Till further orders, the petitioners shall not have to reply to such summons dated 28.3.2018. Direct service is permitted. – Case laws –
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