Summary / Headnotes
Held - Found no ground to interfere with the High Court's judgment holding that the Central Electricity Regulatory Commission (CERC) and the Delhi Electricity Regulatory Commission (DERC) discharge statutory and quasi-judicial functions as Tribunals, and that activities such as tariff regulation, regulation of inter-State transmission of electricity, and grant of licences are not undertaken in the course or furtherance of business. Consequently, the show cause notices seeking to levy GST on the fees collected by the Commissions in discharge of their regulatory functions were rightly quashed. Accordingly, the Special Leave Petitions were dismissed. (Para 2).
SLP dismissed/In favour of assessee
AI Summary of the Case
Question Answered
Issue 1: Whether the functions discharged by the Central and State Electricity Regulatory Commissions constitute activities in the course or furtherance of business so as to attract GST on the fees collected in discharge of their statutory regulatory functions.
Views: The Supreme Court declined to interfere with the High Court's view that Electricity Regulatory Commissions act as tribunals and that regulation of tariff, inter-State transmission of electricity and grant of licences are statutory regulatory functions, not activities undertaken in the course or furtherance of business. Consequently, the show cause notices seeking to levy GST on the fees collected for such functions were unsustainable. (Para 2)
Issue 2: Whether the show cause notices proposing levy of GST on the fees received by Electricity Regulatory Commissions for discharge of their regulatory functions were sustainable.
Views: The Supreme Court found no ground to entertain the Special Leave Petitions and upheld the High Court's decision quashing the show cause notices, thereby dismissing the Revenue's challenge. (Para 2)
Judgment
IN THE SUPREME COURT OF INDIA
before the bench of
mr. J. B. PARDIWALA and
mr. R. Mahadevan, JJ.
Additional Director Directorate General of GST Intelligence (DGGI)
Versus
Central Electricity Regulatory Commission
SLP (Civil) Diary No. 32626 of 2025, decided on 21-7-2025
REPRESENTED BY:
Shri Rupesh Kumar, Sr. Adv.,
Shri Piyush Beriwal,
Ms. Agrima Singh,
Shri Rajat Vaishnaw,
Shri S. Vijay Adithya,
Shri Mudit B.,
Shri Abhyudey,
Shri Mukesh Verma - A, Advs.,
Shri Gurmeet Singh Makker, AOR and
Shri S. Dwarakanath, A.S.G., for the Petitioner
Shri Ajay Vohra, Sr. Adv.,
Shri Shammi Kapoor,
Shri Vishal Kumar, Advs. and
Shri Anant Mann, AOR, for the Respondent
[Order]. - Delay condoned.
2. We do not find any good ground to entertain these Special Leave Petitions. The Special Leave Petitions are, accordingly, dismissed.
3. Pending application(s), if any, stands disposed of.