Disposed

Jaipur Vidyut Vitran Nigam Limited v. Additional Director

Rajasthan HC24 Apr 2024CW/9650/2019

Case brief

AI extract

What is this about?

This order disposes of filed writ petitions challenging a show cause notice regarding service tax on Wheeling Charges and Cross Subsidy Surcharges. The court modified an interim order to allow respondents to decide on the limitation issue, staying further proceedings if decided against the petitioner, while leaving other issues open.

What did the court decide?

Respondents permitted to decide issue of limitation; further proceedings stayed if limitation decided against petitioner.

Jaipur Vidyut Vitran Nigam Limited Vs Additional… — GST and Indirect Tax | Rajasthan HC (2024)

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[2024:RJ-JP:19208-DB]

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HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR

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D.B. Civil Writ Petition No. 9650/2019

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Jaipur Vidyut Vitran Nigam Limited, Having Its Registered Office At Vidyut Bhawan, Jyoti Nagar, Jaipur Through Its Chief Accounts Officer Shri Yogendra Singh Rathore R/o 68, Bhartendu Nagar, Khatipura, Jaipur 302012

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----Petitioner

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Versus

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Additional Director, Directorate General Of Gst Intelligence, Jaipur Zonal Unit, C-62, Sarogini Marg, C- Scheme, Jaipur-302001

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Additional Director General (Adjudication), Directorate General Of Gst Intelligence, West Block Viii, Wing No. Vi, 2Nd Floor, R. K. Puram, New Delhi

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Union Of India, Ministry Of Finance, Department Of Revenue (Tax Research Unit), Room No. 46, North Block, New Delhi - 110 001 Through Its Revenue Secretary

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Rajasthan Electricity Regulatory Commission, Vidhyut Viniyamak Bhawan, Sahakar Marg, Near State Motor Garage, Jaipur, Rajasthan 302001 Through Its Chairman

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----Respondents

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Connected With

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D.B. Civil Writ Petition No. 9908/2019

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Ajmer Vidyut Vitran Nigam Limited, Vidyut Bhawan, Panchsheel Nagar, Makarwali Road, Ajmer- 305004 Through Assistant Accounts Officer (Taxation) Shri Ashok Gupta Being Duly Authorized.

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----Petitioner

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Versus

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Additional Director, Director General Of Gst Intelligence, Jaipur Zonal Unit, C-62, Sarogini Marg, C-Cheme, Jaipur302001.

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Additional Director General (Adjudication), Directorate General Of Gst Intelligence, West Block Viii Wing No. Vi, 2Nd Floor, R.k. Puram, New Delhi.

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Union Of India, Ministry Of Finance, Department Of Revenue (Tax Research Unit), Room No. 46, North Block,

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(2 of 5)

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[2024:RJ-JP:19208-DB]

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[CW-9650/2019]

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New Delhi- 110001 Through Revenue Secretary.

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Rajasthan Electricity Regulation Commission, Vidhyut Viniyamak Bhawan, Sahkar Marg, Near State Motor Garage, Jaipur, Rajasthan - 302001 Through Chairman.

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----Respondents

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D.B. Civil Writ Petition No. 19710/2023

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Ajmer Vidyut Vitran Nigam Limited, Vidyut Bhawan, Panchsheel Nagar, Makarwali Road, Ajmer- 305004 Through Assistant Accounts Officer (Taxation) Shri Ashok Gupta Being Duly Authorized.

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----Petitioner

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Versus

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Joint Commissioner, Office Of The Commissioner, Central Goods And Service Tax Audit Commissionerate, Jaipur, N.c.r. Building, Statue Circle, C- Scheme, Jaipur- 302005

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The Additional/joint Commissioner, Central Goods And Service Tax, Commissionerate, Jaipur, New Central Building, Statue Circle, C-Scheme, Jaipur-302005 For Adjudication.

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The Deputy/assistant Commissioner, Central Goods And Service Tax Audit Circle-C, Ajmer, Cgst Audit Commissionerate Jaipur, N.c.r. Building, Statue Circle, C- Scheme, Jaipur- 302005 For Issuance Of Drc-01 Of Paras 1 Of Audit Report No. 132/2021-22 Dated 11.04.2023.

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The Deputy/assistant Commissioner (Tech), Central Goods And Service Tax Audit Commissionerate Jaipur N.c.r. Building, Statue Circle, C-Scheme, Jaipur- 302005 For Information.

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The Deputy/assistant Commissioner, Central Goods And Service Tax Division-J, Ajmer, Cgst Commissionerate Jaipur N.c.r. Building, Statue Circle, C- Scheme, Jaipur302005

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The Superintendent, Central Goods And Service Tax Range- Xlvi, Division-J, Ajmer, Cgst Commissionerate Jaipur- N.c.r. Building, Statue Circle, C- Scheme, Jaipur302005.

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Union Of India, Ministry Of Finance, Department Of Revenue (Tax Research Unit), Room No.46, North Block,

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(3 of 5)

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[2024:RJ-JP:19208-DB]

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[CW-9650/2019]

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New Delhi- 110001 Through Revenue Secretary.

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Rajasthan Electricity Regulation Commission, Vidhyut Viniyamak Bhawan, Sahkar Marg, Near State Motor Garage, Jaipur, Rajasthan- 302001 Through Chairman.

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State Of Rajasthan, Through The Secretary, Finance Department, Government Secretariat, Jaipur-302005

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----Respondents

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For Petitioner(s)	: Mr.Sanjay Jhanwar, Sr. Counsel with Ms.Shreya Jhanwar & Mr.Wilson Joy
	Mr.Gunjan Pathak with Mr.Kanishk Singhal & Mr.Aditya Bohra
For Respondent(s)	: Mr.Anand Sharma, Mr.Ajay Shukla &
	Ms.Upasna Singh for Mr.Umang Gupta

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HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MR. JUSTICE BHUWAN GOYAL

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Order

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24/04/2024

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These petitions are being decided by this order as the facts and issues involved are common. For convenience, the facts are being taken from D.B. Civil Writ Petition No.9650/2019.

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These petitions are filed challenging show cause notices issued by the Directorate General of Goods and Service Tax Intelligence, Jaipur Zonal Unit, Jaipur.

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The petitioner is a public undertaking engaged in distribution and supply of electricity in Rajasthan. The respondents issued impugned notice dated 18.03.2019 to show cause as to why service tax should not be charged on ‘Wheeling Charges’ and ‘Cross Subsidy Surcharges’.

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[2024:RJ-JP:19208-DB]

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[CW-9650/2019]

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(4 of 5)

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The inter-alia ground for challenging the show cause notice is that it was not a case of fraud and extended period of limitation could not have been invoked by the respondents for issuance of show cause notice.

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On 29.05.2019, while issuing notice of motion, proceedings pursuant to the impugned show cause notice were permitted to be continued, however passing of the final order was stayed.

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On 12.03.2024, the interim protection was modified by passing following order:-

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“1. These petitions are filed challenging impugned show cause notice issued on the ground as to whether wheeling charges are to be subjected to service tax or not. One of the legal issues raised by the petitioners is that in the facts and circumstances of the case the extended period of limitation can be invoked?

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Counsel for the petitioner submits that albeit the reply was filed to show cause notice raising the issue that extended period of limitation cannot be invoked but the respondents have chosen not to decide it.

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Counsel for the respondent submits that vide order dated 29.05.2019 though the respondents were permitted to proceed with the matter but passing of the final order was stayed.

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The interim order is modified to the extent that the respondents shall be at liberty to decide the issue of limitation for initiation of proceedings and if issue is decided against the petitioner shall not proceed further to frame assessment.

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Put up on 23.04.2024.”

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Learned counsel for the respondents submits that in pursuance to directions of this Court vide order dated 12.03.2024,

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[2024:RJ-JP:19208-DB]

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[CW-9650/2019]

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(5 of 5)

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objection of the petitioner with regard to limitation is being considered and would be decided after providing an opportunity of hearing to the petitioner.

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In view of the above, the writ petitions are disposed of at this stage as the decision on the objection of limitation would have ramification on the challenge to the show cause notice. The other issues raised in this petition are kept open.

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The petitioners shall be at liberty to avail remedy in accordance with law including approaching this Court by way of writ petition (if maintainable) in case aggrieved of the decision and for redressal of surviving grievance.

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It is clarified that the respondents shall not proceed in pursuance to the impugned show cause notice without first communicating the order passed.

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(BHUWAN GOYAL),J

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(AVNEESH JHINGAN),J

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Monika/Sudeepak/47-49

Jaipur Vidyut Vitran Nigam Limited v. Additional Director

Case brief

What is this about?

What did the court decide?

Jaipur Vidyut Vitran Nigam Limited v. Additional Director

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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