Page 151 - GSTL_21st May 2020_Vol 36_Part 3

2020 ] IN RE : CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LTD. 397
(iv) Labour charges from customers for shifting of meters or shifting of
service lines; Circular No. 34/8/2018-GST
(v) charges for duplicate bill;
Further it is was clarified in the circular that the other services such as meter rent,
application fees, testing fees for meters etc. provided by these companies to their
consumers are taxable.
6.6 The same contentions was upheld by AAR Rajasthan issued ruling
in the matter of M/s. TP Ajmer Distribution Limited vide RAJ/AAR/2018-19/AR-
02, dated 11-5-2018 [2018 (14) G.S.T.L. 309 (A.A.R. - GST)] and relying upon the
Circular No. 34/8/2018-GST issued on 1st March 2018 also held that transmis-
sion/distribution of electricity alone shall be exempt in terms of Notification No.
12/2017-Central Tax (Rate) and non-tariff charges which is recovered from cus-
tomer with respect to provision of the following service as mentioned below is
taxable
(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 meters or shifting of
service lines
(v) charges for duplicate bill
6.7 Subsequently vide Judgment rendered by the Honourable High
Court of Gujarat in the case of M/s. Torrent Power Limited of Gujarat High Court
vide Special Civil Application No. 5343 of 2018, dated 5-4-2018 [2018 (17) G.S.T.L.
183 (Guj.)] stating that Vide Circular No. 34/8/2018-GST, dated 1-3-2018 was
quashed.
6.8 The facts of the judgment is narrated that the ancillary charges col-
lected by Electricity Distribution Company towards application fee, meter rent,
other pre and post connection charges for shifting of lines, etc. are covered by
entry 25 of exemption Notification Number 12/2017-Central Tax (Rate), dated
28-6-2017 relating to transmission and distribution of electricity. Hence the same
would constitute composite supply as per section 8 of the GST Act.
6.9 It is pertinent to note that the department has filed Special Leave
Petition vide Diary No(s). 24733/2019, dated 9-8-2019 [2020 (34) G.S.T.L. J137
(S.C.)] in the Honourable Supreme Court against the order passed by Honoura-
ble High Court of Karnataka in the case of M/s. Torrent Power Limited of Gujarat
High Court vide Special Civil Application No. 5343 of 2018, dated 5-4-2018 [2018
(17) G.S.T.L. 183 (Guj.)] is at present pending for the decision.
7. In view of the foregoing, we pass the following.
RULING
8. The issue of the exemption activities carried out by the applicant
with reference to administration and Pre and Post-connection charges towards
supply of electricity is pending before Honorable Supreme Court of India vide
SLP Diary No. 24733/2019, dated 9-8-2019 [2020 (34) G.S.T.L. J137 (S.C.)]. Since
the matter is sub-judice therefore advance ruling on aforesaid issue cannot be
given.

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GST LAW TIMES  21st May 2020  151