Bharuch Dahej Railway Company Limited vs. Union Of INDIA & Ors.
Facts
The petitioners, including Kutch Railway Company Limited, Adani Tracks Management Services Limited, Bharuch Dahej Railway Company Limited, Angul Sukinda Railway Limited, and Haridaspur Paradip Railway Company Ltd., filed writ petitions challenging communications from the Railways. These communications asserted that Goods and Services Tax (GST) was leviable on activities undertaken by project-specific Special Purpose Vehicles (SPVs) for the Railways, and vice-versa. The dispute concerned the taxability of these inter-entity transactions under GST. The petitions were heard together by the Delhi High Court.
Held
The Court noted that the parties were in agreement that a Notification dated 12.07.2024 and a subsequent clarification dated 15.07.2024 had been issued. These documents provided an exemption from GST for services rendered by SPVs to the Ministry of Railways, as well as for maintenance services provided by the Ministry of Railways to SPVs. The counsel for the Railways confirmed that these exemptions meant the impugned communications would not be applied to the petitioners. Consequently, the Court found no further orders to be necessary. The petitions were disposed of based on these submissions and the documents placed on record.
Key Issues
1. Whether GST is leviable on activities undertaken by Special Purpose Vehicles (SPVs) for the Ministry of Railways, and vice-versa, based on the prevailing GST laws and notifications. The petitioners contended that the impugned communications from the Railways were erroneous in asserting GST levy on their activities. They relied on subsequent developments that provided relief. The revenue, represented by the Union of India and its authorities, initially issued the communications asserting the levy. However, during the proceedings, the revenue conceded that the impugned communications would not be applied to the petitioners. This concession was based on a Notification dated 12.07.2024 and a Clarification dated 15.07.2024, which exempted services provided by SPVs to the Ministry of Railways and maintenance services supplied by the Ministry of Railways to SPVs from GST.
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Heard together (5 matters)
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W.P.(C) 655/2024 & Connected matters versus UNION OF INDIA & ORS. .....Respondents Appearance:- Mr. Vivek Sharma & Ms. Saumya Mehrotra, Advocates for Petitioners in Item Nos. 48, 50 to 52. Mr. Rishi Agarwala, Mr. Manu Krishnan, Mr. Jimut Mohopaha & Mr. Yash Jain, Advocates for Petitioners in Item Nos.
Mr. Akshay Am
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