Case Law Details
Sterlite Power Transmission Ltd. Vs Union of India (Delhi High Court)
Delhi HC issued notice to decide on the taxability of providing corporate guarantee by holding company to a subsidiary
The Hon’ble Delhi High Court heard the case of Sterlite Power Transmission Ltd. v. Union of India [WP (C) 2966 of 2024] on February 28, 2024.
The Petitioner has filed a writ petition for declaration to the effect that the activity of the holding company providing a Corporate Guarantee to a subsidiary should not be considered as supply of services taxable under Section 9 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”).
The Counsel for the Petitioner relied upon the order dated March 17, 2023 passed by Hon’ble Supreme Court in the case of Commissioner of CGST & Central Excise v. Edelweiss Financial Services Ltd [Civil Appeal (Diary No). 5258/2023] wherein it was contended that, issuance of Corporate Guarantee to a group company without consideration would not fall within banking and other financial services and therefore, is a non-taxable service.
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