Delhi High Court Exempts Electricity Commissions Fee Collections from GST
- Case Name: CERC v. Additional Director Directorate General of GST Intelligence
- Judge(s): Justices Yashwant Varma and Dharmesh Sharma
The Delhi High Court ruled that fees collected by the Central Electricity Regulatory Commission (CERC) and Delhi Electricity Regulatory Commission (DERC) are exempted from GST.
A Division Bench quashed Show Cause Notices (SCNs) issued by GST authorities, alleging these fees constituted taxable services.
The Court held that commissions, as quasi-judicial tribunals performing regulatory and adjudicatory functions under the Electricity Act, 2003, are exempt under Schedule III of the GST Acts.
It emphasized that their fee collection is part of statutory duties, not business activities, making the SCNs arbitrary and unsustainable.
Business Standard / 1 year, 2 months ago
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