1. Home

SGST High Court Cases

GST – Section 7 & Schedule III of the CGST Act, 2017 - Scope of Supply, Regulatory Functions, Business – Challenge to levy of GST on fees received by the in the course of discharge of regulatory functions under the Electricity Act, 2003 – Department of the view that the regulatory functions of petitioner, except for their adjudicatory functions, would constitute a "supply of services" under the GST law and hence be liable to GST - Whether the regulatory functions discharged by CERC and DERC would constitute a "supply of services" exigible to GST under the CGST Act - HELD - The Section 7 of the CGST Act defines "supply" to include activities undertaken in the course or furtherance of "business", which in turn is defined to include trade, commerce, manufacture, profession, vocation, etc. The regulatory powers vested in CERC and DERC under the Electricity Act cannot be equated with any of the activities covered under the definition of "business" - The Schedule III of the CGST Act expressly excludes services rendered by a Court or Tribunal from the scope of taxable supply. The CERC and DERC, being quasi-judicial bodies, would fall within the ambit of this exclusion - the regulatory functions discharged by CERC and DERC cannot be construed as a "supply of services" under the CGST Act and the fees received by CERC and DERC in the course of discharging their regulatory functions are not exigible to GST – The regulation of tariff, inter-State transmission of electricity or the issuance of license is clearly not in furtherance of business or trade but in extension of the statutory obligation placed upon a Commission to regulate those subjects - the respondents' attempt to draw a distinction between the adjudicatory and regulatory functions of CERC and DERC is untenable. The Electricity Act does not make any such distinction and vests both regulatory and adjudicatory powers in these statutory bodies – Further, even though Section 2(102) of the CGST Act defines the expression “services” to mean “anything other than goods”, the expansive reach of that definition would have to be read alongside Schedule III, which exempt the functions discharged by a Court or Tribunal from the levy of a tax under the CGST - The exclusion under Schedule III of the CGST Act for services rendered by a Court or Tribunal would apply to the entire gamut of functions discharged by CERC and DERC, without any bifurcation - the impugned show cause notices are quashed and set aside – the writ petitions are allowed
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

GST Video

Decisions of 55th GST Council Meeting
By Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?