Regulatory commissions are exempt from GST as their functions do not constitute taxable supply of goods or services under the CGST Act.

ORDER :

S.R.KRISHNA KUMAR, J.

1. In this petition, petitioner seeks the following reliefs.

"a) Issue a writ of certiorari or writ in the nature of certiorari or any other appropriate writ, direction or order for quashing the impugned order bearing No.78/2024- 2025/GST/JC dated 15.01.2025(Annexure B) which was ordered by the Joint Commissioner, CGST, Bangalore North Commissionerate Respondent No.1 demanding GST amounting to Rs.13,42,66,423/- (CGST-Rs.6,71,33,423/- and SGST-Rs.6,71,33,423/-) as the same is illegal, without jurisdiction, violative of principles of natural justice as also violative of Articles 14 and 265 of the Construction of India.

b) Issue a writ of certiorari or writ in the nature of certiorari or any other appropriate writ, direction or order for quashing the show cause notice dated 02.08.2024 (Annexure A) bearing No.SGN No.86/24-25 which was issued by the Office of the Commissioner of Central Tax, Bangalore North Commissionerate proposing to demand GST amounting to Rs.13,42,66,423/- (CGST- Rs.6,71,33,423/- and SGST - Rs.6,71,33,423/-) as the same is illegal, without jurisdiction, violative of principles of natural justice as also violative of Articles 14 and 265 of the Constitution of India and/or pass such order/orders as this Court may deem fit and proper in the circumstances of the case;

c) Issue any writ or order or direction which deemed which this Hon'ble Court deems fit in the circumstances of the case, in the interest of justice and equity."

2. Heard the learned counsel for the petitioner and learned counsel for respondents.

3. A perusal of the material on record will indicate that the petitioner herein is the Karnataka Electricity Regulatory Commission (KERC), who is aggrieved by the impugned order at Annexure B dated 15.01.2025, demanding GST sum of Rs.13,42,66,423/- from the petitioner/KERC.

4. Under identical circumstances, in relation to the Central Electricity Regulatory Commission (CERC) and Delhi Electricity Regulatory Commission (DERC) in W.P.(C) No.10680/2024 & CM Appl.43919/2024, on 15.01.2025, the Division Bench of Delhi High Court has held as under:

"17. It becomes pertinent to note that the CGST Act imposes a tax on an inter-state supply of goods or services or both by virtue of Section 9 which reads as follows:-

"9. Levy and collection.--(1) Subject to the provisions of sub- section (2), there shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption and un-denatured extra neutral alcohol or rectified spirit used for manufacture of alcoholic liquor, for human consumption, on the value determined under Section 15 and at such rates, not exceeding twenty per cent, as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person.

(2) The central tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel shall be levied with effect from such date as may be notified by the Government on the recommendations of the Council.

(3) The Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.

(4) The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregiste