Vibhu Bakhru, J. (Oral)

1. The petitioners have filed the present petition, inter alia, praying as under:

"(a) Quash and set aside the clarification issued in para 4(1) of the Circular No. 34/8/2018-GST dated 01.03.2018 by the Government of India.

(b) Declare that in terms of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, all the activities undertaken by a distribution utility/licensee in accordance with the provisions of the Electricity Act, 2003 are exempt from levy of tax under the Central Goods and Services Tax Act, 2017 and Delhi Goods and Services Tax Act, 2017.

(c) In the alternative, declare that declare the charges such as application fee, meter rent, testing fee, etc collected by the Petitioners are part of composite supply of which principal supply is the actual distribution of electricity and therefore the entire composite supply is exempt from tax under Entry 25 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 and Notification No. 12/2017-State Tax (Rate) dated 30.06.2017;

(d) In the alternative, declare that the Clarification issued in para 4(1) of the Circular No. 34/8/2018-GST dated 01.03.2018 by the Government of India would be applicable prospectively.

(e) Pass such further orders as may be deemed fit and proper in the facts and circumstances of the present case."

2. The Central Government in exercise of its powers under Section 11 of the Central Goods and Services Tax Act, 2017 (hereafter `the CGST Act'), had issued a notification being Notification No.12/2017 Central Tax (Rate) dated 28.06.2017. In terms of the said notification, the intra-State supply of services (transmission or distribution of electricity by an electricity transmission or distribution utility) is exempted from the Goods and Services Tax (GST). Serial No. 25 of the said notification is extracted below:

S. No. Chapter, Section Heading, Group or Service Code (Tariff) Description of servicesRate (per cent) Condition25 Heading 9969Transmission or distribution of electricity by an electricity transmission or distribution utility. NilNil

3. It is stated by the petitioners that in terms of the said notification, the petitioners being electricity distribution utilities, were neither collecting GST from its customers for the supplies nor depositing the same with the GST authorities.

4. The petitioners are essentially aggrieved by the issuance of the circular being Circular No. 34/08/2018-GST dated 01.03.2018 (hereafter `the impugned circular'). In particular, the petitioners are aggrieved by the clarification issued at serial No. 4 of the impugned circular. The same is extracted below:

4. (1) Whether the activities carried by DISCOMS against recovery of charges from consumers under State Electricity Act are exempt from GST?
(2) Whether the guarantee provided by State Government to state owned companies against guarantee commission, is taxable under GST? (1) Service by way of transmission or distribution of electricity by an electricity transmission or distribution utility is exempt from GST under notification No. 12/2017 CT (R), Sl. No. 25. The other services such as:
i. Application fee for releasing connection of electricity;
ii. Rental Charges against metering equipment;
iii. Testing fee for meters/ transformers, capacitors etc.;
iv. Labour charges from customers for shifting of meters or shifting of service lines;
v. charges for duplicate bill;
provided by DISCOMS to consumer are taxable.
(2) The service provided by Central Government/State Government to any business entity including PSUs by way of guaranteeing the loans taken by them from financial institutions against consideration in any form including Guarantee Commission is taxable.

5. In terms of the impugned circular, it is clarified that the certain charges collected by the petitioners are not covered under the notification No.12/2017-Central Tax (Rate) dated 28.06.2017.

6. According to the petitioners, the charges as referred above are included in the charges for p