Association of Power Producers Vs Solar Energy Corporation of India Limited & Ors. (Delhi High Court)
CBIC is not obligated to issue clarifications on GST issues raised by way of representation or otherwise: Delhi HC
Summary: The Delhi High Court, in Association of Power Producers v. Solar Energy Corporation of India Ltd., ruled that the Central Board of Indirect Taxes (CBIC) is not obligated to provide clarifications on taxpayer queries regarding GST applicability. The case involved a petition by the Association of Power Producers requesting the CBIC to clarify whether GST applies to Battery Energy Storage Systems (BESS). The petitioners argued that ambiguity in government guidelines had created confusion among bidders participating in a tender issued by the Solar Energy Corporation of India Limited (SECI). The court, however, held that GST liability must be determined by referring to statutory provisions rather than seeking direct clarifications from CBIC. The court cited Section 168 of the CGST Act, which grants CBIC the authority to issue general directions for uniform implementation but does not mandate responses to specific taxpayer queries. The judgment emphasized that the proper route for resolving GST-related uncertainties is through statutory interpretation or the Advance Ruling mechanism. The court also dismissed the petition due to its late filing, noting that any concerns should have been raised during the pre-bid meeting. This ruling reinforces the principle that taxpayers must rely on GST laws and structured dispute resolution mechanisms rather than expecting regulatory bodies to issue case-specific clarifications.
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