Tata Power Renewable Energies Limited vs. Union Of INDIA
Held
The High Court held that the explanations in Notification No.1/2017 and No.11/2017 created a legal fiction for the 70:30 mechanism for composite supply of solar power generating systems, irrespective of separate invoicing. The Court found the 3rd respondent's view incorrect and set aside the assessment order to the extent of the differential tax levy, directing consequential orders.
Facts
The petitioner, engaged in supplying solar power generating systems and services, paid GST based on a 70:30 split for goods and services (effective 8.9%) as per amended Notifications No.1/2017 and No.11/2017. The 3rd respondent issued a show cause notice under Section 74 of the CGST Act, proposing 18% tax on the entire supply, arguing that separate invoices for goods and services rendered the 70:30 mechanism inapplicable, and subsequently passed an assessment order demanding differential tax, penalty, and interest.
Key Issues
The key legal issues were the applicability of the 70:30 tax mechanism for composite supply of solar power generating systems and services, and whether the issuance of separate invoices precluded the benefit of this mechanism, thereby challenging the validity of the assessment order.
Sections Cited
Section 74, Section 74(9)
AI-generated summary — verify with the full judgment below
APHC010201652025
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3529] WEDNESDAY,THE TWENTY NINETH DAY OF APRIL TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR WRIT PETITION NO: 10314/2025 Between:
TATA POWER RENEWABLE ENERGIES LIMITED,, (FORMERLY, TATA POWER SOLAR SYSTEMS LIMITED)
A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956. HAVING ADDRESS AT D. NO. 12/4593 KOTA STREET, PRODDATUR, YSR DISTRICT, ANDHRA PRADESH - 516360. REP BY ITS AUTHORIZED SIGNATORY MR. SURESH GOENKA
...PETITIONER AND 1. UNION OF INDIA, REP BY ITS REVENUE SECRETARY, MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI.
STATE OF ANDHRA PRADESH, THROUGH ITS PRINCIPAL SECRETARY, REVENUE DEPARTMENT (COMMERCIAL TAX) A.P. SECRETARIAT, VELAGAPUDI, GUNTUR DISTRICT, ANDHRA PRADESH.
THE DEPUTY COMMISSIONER ST, SPECIAL CIRCLE KADAPA DIVISION, 1/499, OPP YSR GUEST HOUSE, SMITH ROAD, NEAR ZILLA PARISHAD, KADAPA 516 001, YSR DISTRICT, ANDHRA PRADESH.
...RESPONDENT(S):
The judgment continues below.
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