CBIC Has No Obligation to Issue Clarifications on Queries Regarding Taxability of Services Under GST | Delhi HC

Case Details: Association of Power Producers v. Solar Energy Corporation of India Ltd. - [2024] 166 taxmann.com 539 (Delhi)

Judiciary and Counsel Details

• Vibhu Bakhru & Sachin Datta, JJ.
• Shri Venkatesh, Ashutosh K. Srivastava & Aashwyn Singh, Advs. for the Petitioner.
• Shikha Ohri, Ms. Ritika Singh, Kartik Sharma, Advs., Ravi Prakash, CGSC, A. Khandelwal, Ms. Isha Kanth, Rishabh Kashyap, Sanad Dobwal, Advs., Anurag Ojha, Sr. SC & Subham Kumar, Advs. for the Respondent.

Facts of the Case

The petitioner is an Association of Power Producers and it filed a writ petition on behalf of its members. It was prayed that an appropriate writ or order or directions be issued to Solar Energy Corporation of India Limited (SECI) and Ministry of Power to decide on the clarifications sought by the petitioner in a time bound manner. It was also prayed that directions be issued to the Central Board of Indirect Taxes (CBIC) to clarify the applicability of GST on Battery Energy Storage Systems (BESS).

High Court Held

The Honorable High Court noted that the petitioner approached the Court on the eve of the opening of the bids which was scheduled for next day. However, there is no provision in the said statutes requiring CBIC to entertain queries from taxpayers or to provide clarifications regarding statutory provisions pursuant to queries posed by taxpayers. In the instant case, the CBIC is not required to clarify applicability of GST on BESS since the bidders have to ascertain whether GST is payable in reference to the relevant GST statutes. Therefore, the Court held that the petition was highly delayed and liable to be dismissed.