Jodhpur Vidyut Vitran Nigam Ltd Vs Union of India (Rajasthan High Court)
Rajasthan High Court relied on Gujarat High Court judgment dated 19.12.2018 in case of Torrent Power Ltd. Vs. Union of India, and restrained GST department from raising any demand and/or taking any coercive measures to recover any tax on the basis of impugned circular No. 34/8/2018-GST dated 1.3.2018 which sought to levy GST on (i) application fee for releasing connection of electricity; (ii) Rental Charges against metering equipment; (iii) Testing fee for meters/ transformers, capacitors etc.; (iv) Labour charges from customers for shifting of meters or shifting of service lines; and (v) charges for duplicate bill.
It was also held that A circular cannot seek to clarify provisions of statutory notification dated 28.06.2017, which is otherwise unequivocal. There is no room for ambiguity or doubt, for which the GST Counsil was required to issue the circular. Respondents have as a matter of fact, levied tax on some of the services by carving them out that too by way of a circular under the cloak of a clarification.
FULL TEXT OF THE HIGH COURT JUDGMENT
1. The petitioner is a Public Sector Undertaking engaged in distribution and supply of electricity in various Districts of Rajasthan.
2. According to the petitioner, the services of distribution and supply of electricity fall in negative list of the services as declared by the Central Government vide Notification No.12/2017 dated 28.06.2017. Relevant entry reads thus :
