Union of India & Anr. Vs Torrent Power Ltd. (Supreme Court of India)
In recent case of UNION OF INDIA & ANR. Vs TORRENT POWER LTD. Supreme Court held that, court are not allowed to invent the new modality which is not contemplated by the provision of Law nor rules. Court directed to credit the amount refundable to Consumer Welfare Fund.
Background
Taxpayer (respondent) is a generator and distributor of power in the State of Gujarat. And collected from its consumers the amounts payable towards IGST on ocean freight (Notification No. 10/2017-Integrated Tax (Rate), dated 28.06.2017). However said levy is held unconstitutional by the High Court of Gujrat and confirmed by Supreme Court.
Respondent has collected the tax and hence incidence of Tax is passed on to the consumers. However respondent-company submitted affidavit, stating that it would open a separate designated bank account in a scheduled bank and the refunded and would be transferred to the said account.
The respondent- company undertook that it would not utilize the amount credited in the said account and would offer the same as revenue for the purpose of determination of tariff by the Gujarat Electricity Regulatory Commission under the Electricity Act, 2003. Same is allowed by high court
