CHENNAI: The Madras High Court on Wednesday stayed the notice issued by the Directorate General of Goods and Services Tax Intelligence (DGGSTI) demanding Rs 6.97 crore tax for various services offered by the Tamil Nadu Electricity Regulatory Commission (TNERC).
Justice J Sathya Narayana Prasad granted the relief after hearing a petition filed by the TNERC and posted the matter to July 1. Saying the services offered by TNERC would fall within the ambit of supply, the DGGSTI issued the demand notice on May 6. It sought the TNERC to pay the amount of Rs 9.67 crore tax along with applicable interest and also proposed to impose penalty.
Senior advocate P Wilson submitted that the commission was set up to perform judicial and legislative functions; trappings of a court are judicial.