Haridaspur Paradip Railway Company LTD. vs. Union Of INDIA & Ors.
Facts
The petitioners, 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 before the Delhi High Court. The petitions challenged communications issued by the Railways asserting that Goods and Services Tax (GST) was leviable on activities undertaken by the petitioners for the Railways through project-specific Special Purpose Vehicles (SPVs), and vice-versa. The core of the dispute revolved around the taxability of these inter-entity transactions under GST.
Held
The Court noted that learned counsel for the parties were in agreement that a Notification dated 12.07.2024 and a clarification dated 15.07.2024 had been issued. These documents exempted services provided by SPVs to the Ministry of Railways and maintenance services supplied by the Ministry of Railways to SPVs from the levy of GST. Consequently, the learned counsel for the Railways stated that the impugned communications, which asserted the levy of GST, would not be applied to the petitioners. The Court took on record the copies of the notification and clarification. In light of these submissions and the issued exemption, the Court found no further orders to be required in the writ petitions.
Key Issues
1. Whether GST is leviable on activities undertaken by the petitioners for the Railways through project-specific SPVs and vice-versa, considering the nature of these transactions. The petitioners contended that such activities should not be subject to GST. The Revenue argued for the levy of GST on these transactions. The parties were ad idem that subsequent to the issuance of the impugned communications, a Notification dated 12.07.2024 and a clarification dated 15.07.2024 were issued. These official pronouncements exempted services provided by SPVs to the Ministry of Railways and maintenance services supplied by the Ministry of Railways to SPVs from the levy of GST.
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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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