Page 149 - GSTL_21st May 2020_Vol 36_Part 3

2020 ] IN RE : CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LTD. 395
payment of taxes as per Entry Number 25 of the notification number
12/2017-Central Tax (Rate), dated 28-6-2017.
(e) The applicant states that from the provisions of the CGST Act men-
tioned in Para 6 above, the service of transmission or distribution of
electricity by an electricity transmission or distribution utility is ex-
empt under said Notification. The applicant is being distribution li-
censee under the Electricity Act, 2003. Hence, the applicant would
clearly fall within the ambit of definition of the term ‘electricity
transmission or distribution utility’.
(f) The applicant states that the said Exemption Notification does not
define the terms ‘transmission or distribution of electricity’. Accord-
ingly, it is pertinent to analyze whether the other charges collected
by applicant would be treated as consideration for the activity of
‘transmission and distribution of electricity’ and thereby covered
under the said Entry of the Exemption Notification.
(g) The Applicant being the licensee holder for the Distribution and
transmission of electricity to end user has to develop and maintain
an efficient, coordinated and economical distribution system, hence
the applicant undertakes certain activities like Supervision, installa-
tion, repair and maintenance of meter, electric lines and other relat-
ed activities. These services are directly related to the “Distribution of
Electricity”. The detailed list of activities done by the applicant is
enumerated above.
(h) The applicant further states that as per Section 2(30) of the CGST
Act the said activities comes under purview of “composite supply”
means a supply made by a taxable person to a recipient consisting
of two or more taxable supplies of goods or services or both, or any
combination thereof, which are naturally bundled and supplied in
conjunction with each other in the ordinary course of business, one
of which is a principal supply. Where in principal supply is electric-
ity. From the above point of view the principal supply is distribu-
tion and transmission of electricity by licensee holder to the end-
user hence whatever ancillary charges associated with supply trans-
action is being exempted from GST.
4. The applicant has referred to the following judgements in support of
his contention :
4.1 In this regard the applicant has referred to the judgement rendered
by Honourable Supreme Court in the case of Doypack Systems (Pvt.) Ltd. v. Union
of India [1988 (36) E.L.T. 201 (S.C.)], in which the Hon’ble Apex Court has ana-
lyzed that -
Interpretation of Statute - Deeming provision - Intended to enlarge the
meaning of a particular word. Deeming provision is intended to enlarge the
meaning of a particular word or to include matters which otherwise may or
may not fall within the main provisions [para 64]. Interpretation of Statute -
Meaning to be given to words - Construction to be adopted. - And also referred
the judgment rendered by Honourable Apex Court in the case of Oswal
Agro Mills Ltd. v. Collector of Central Excise [1993 (66) E.L.T. 37 (S.C.)], the
Hon’ble Apex Court has held that :- it is very clear that the statute should
GST LAW TIMES  21st May 2020  149