Page 167 - GSTL_14th May 2020_Vol 36_Part 2

2020 ] IN RE : GUJARAT ENERGY TRANSMISSION CORPN. LTD. 269
30th June, 2017. Thus, the entire value of the supply of service
of “Transmission of Electricity” by the Applicant which as
submitted in para (iii) above will include the aforesaid cost of
construction/erection in addition to the Transmission charg-
es, is exempt from GST and accordingly no GST is payable on
the said cost of construction/erection recovered from the
consumers to whom the supply of service of “Transmission
of Electricity” is made by the Applicant.
(v) Except the supply of service of “Transmission of Electricity”,
no other supply of any goods or service is made by the Ap-
plicant to the consumer. As submitted hereinabove, the
Bays/Sub-Stations, Overhead Lines and Cables which are
constructed/erected for the purpose of supply of service of
“Transmission of Electricity” vest in the Applicant and are
the property/assets of the Applicant. Thus, there is no supply
other than supply of service of “Transmission of Electricity”
to the consumer and the supply of service of “Transmission
of Electricity” is exempt from GST.
(vi) In the circumstances, no GST is payable by the Applicant.
3. Further, the Applicant, vide their letter Ref. No. GETCO/GM(F&A)/
Advance Ruling/379, dated 20-4-2018 submitted their written submission of the
personal hearing proceedings conducted on 12-4-2018 where arguments were
canvassed by their counsel namely Mr. Jaideep C. Patel, Advocate, as under :
(i) The Applicant is a Government Company and is notified as a State
Transmission Utility under Section 39(1) of the Electricity Act, 2003.
(ii) As a State Transmission Utility, it is the function of the Applicant
under Section 39(2)(d) of the Electricity Act, 2003 to provide non-
discriminatory open access to its transmission system to any licen-
see, generating company or consumer.
(iii) Accordingly, the Applicant supplies the service of “Transmission of
Electricity”.
(iv) To supply the service of “Transmission of Electricity” under ‘Non-
discriminatory open Access”, construction/erection of “Bays/Sub-
Stations, Overhead Lines, Underground cables, etc.” is required to
be carried out.
(v) Under the GERC (Terms and Conditions of Intra-State Open Ac-
cess) Regulations, 2011, the cost of such construction/erection has to
be borne by the consumer. However, under the Regulations, the
Bays/Sub-stations, Overhead Lines, etc. so constructed/erected vest
in the Applicant and are the property/assets of the Applicant, not-
withstanding that the cost thereof is borne by/recovered from the
consumer.
(vi) An option is provided to the consumers to themselves arrange for
having such construction/erection or part thereof carried out.
Where the consumers do not themselves arrange to have such con-
struction/erection or part thereof carried out, the Applicant gets the
same carried out by EPC Contractors who supply works contract
service to the Applicant.

GST LAW TIMES  14th May 2020  167