JUDGMENT :

LISA GILL , J.

1. Prayer in this writ petition is for quashing Show Cause Notice No.79 dated 28.06.2024 (Annexure P-11), whereby respondent No.2 has levied GST on the amount received by the petitioner as petition fee, ARR processing fee and license fee. It is the case of petitioner that said amount is received for discharging functions under Section 86 of the Electricity Act, 2003, which are judicial, quasi-judicial and inherently of statutory nature.

2. Learned counsel for petitioner submits that controversy involved in this writ petition is identical to one as had arisen before Delhi High Court in W.P (C) 10680 of 2024 titled as Central Electricity Regulatory Commission Versus The Additional Director Directorate General of GST Intelligence (DGGI) and another, decided on 15.01.2025 along with connected matter.

3. After considering the arguments on behalf of petitioner, stand of respondents in aforesaid matter and scrutinizing applicable provisions of law, it has been held by Delhi High Court that regulation of tariff, inter-State Transport transmission of Electricity or issuance of licence cannot be construed as activities undertaken or functions discharging furtherance of business but they are in extention of statutory obligation placed upon a Commission to regulate these subjects. Relevant portion of the decision dated 15.01.2025 reads as under:-

“24. It becomes pertinent to note that the CGST Act not only deals with the supply of goods or services per se, it also brings within its ambit composite and mixed supplies in terms of Section 8. Composite supplies are those which are spelt out and enumerated in serial 6 of Schedule II. The supply of services generically is dealt with in serial 5. Undisputedly, the regulatory function discharged by Commissions can neither be said to be akin to renting of immovable property, construction of a complex or building, temporary transfer or permissive use or enjoyment of an intellectual property right, development, design of software, transfer of the right to use goods and which are subjects enumerated in serial 5 of Schedule II. The regulatory power which is wielded by Commissions under the provisions of the Electricity Act would also not fall within the ambit of clause (e) of serial 5 and which speaks of an obligation to refrain from doing an act or toleration of an act or situation.

25. Of equal significance is the definition of "business" and "consideration" as it appears in the statute. Section 2(17) defines "business" as follows: -

"2. Definitions. In this Act, unless the context otherwise requires-

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(17) "business" includes-

(a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit;

(b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a);

(c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction;

(d) supply or acquisition of goods including capital goods and services in connection with commencement or closure of business;

(e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members;

(f) admission, for a consideration, of persons to any premises;

(g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation;

(h) activities of a race club including by way of totalisator or a license to book maker or activities of a licensed book maker in such club; and;

(i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities;"

26. The expression "consideration" is found in Section 2(31) which reads thus: -

"2. Definitions. In this Act, unless the context otherwise requires.-

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