Karnataka Electricity Regulatory Commission Vs Joint Commissioner Central Tax (Karnataka High Court)
Karnataka High Court quashes demand of GST against Karnataka Electricity Regulatory Commission by concluding that regulatory function discharged by commission doesn’t qualify as taxable supply. Accordingly, order and notice quashed.
Facts- The petitioner is the Karnataka Electricity Regulatory Commission. The present petition has been preferred by the petitioner. The petitioner is aggrieved by the impugned order dated 15.01.2025 demanding GST sum of Rs. 13,42,66,423/- from the petitioner.
Conclusion- In Narinder Chand Hem Raj v. Lt. Governor, H.P. [(1971) 2 SCC 747] this Court has held that power to tax is a legislative power which can be exercised by the legislature directly or subject to certain conditions. The legislature can delegate that power to some other authority. But the exercise of that power, whether by the legislature or by the delegate will be an exercise of legislative power. The fact that the power can be delegated will not make it an administrative power or adjudicatory power. In the said judgment, it has been further held that no court can direct a subordinate legislative body or the legislature to enact a law or to modify the existing law and if courts cannot so direct, much less the tribunal, unless power to annul or modify is expressly given to it.
