Facts of the Case

This is primarily an electricity-law dispute, not a GST dispute, even though the order does touch GST as one line item in a billing estimate. The petitioner, Hi Lead Infotech (Pvt.) Limited, through its Director Sunil Kumar, approached the Allahabad High Court against the State of U.P. and five others, aggrieved by an estimate prepared by the Executive Engineer, Electricity Urban Distribution Division-III, Paschimanchal Vidyut Vitran Nigam Limited (PVVNL), Gautam Budh Nagar, under Clause 4.6 of the Electricity Supply Code, 2005. The petitioner's case was that this estimate, dated 22.12.2022, had been prepared on the instructions of the Superintendent Engineer, who was the authority that had sanctioned the load in the first place. The petitioner also objected to GST being included as part of this estimate on supplies it had itself purchased. The petitioner claimed to have already filed an objection before the Chief Engineer, PVVNL, Gautam Budh Nagar, though that objection was not placed on the record of the writ petition.

Issues Involved

  1. Whether the petitioner had an efficacious alternative remedy against the Executive Engineer's load estimate under Clause 4.6 of the Electricity Supply Code, 2005.
  2. Whether the imposition of GST as part of the estimate could be examined by the writ court, or whether it too should go before the Chief Engineer along with the main objection.

Petitioner's Arguments

  • The estimate prepared by the Executive Engineer was effectively directed by the Superintendent Engineer, who was the competent authority for sanctioning the load.
  • An objection against the estimate had already been filed before the Chief Engineer, PVVNL, Gautam Budh Nagar (though not annexed to the writ petition).
  • The imposition of GST in the estimate, on supplies purchased by the petitioner itself, was separately objectionable and required examination.

Respondent's Arguments

  • No detailed opposition is recorded; the order proceeds essentially on the remedy available to the petitioner under the Electricity Supply Code rather than on a contest of facts.

Court Order / Findings

  • The Court did not go into the merits of either the load estimate or the GST component; it treated both as matters for the departmental authority.
  • The petitioner was permitted to file fresh objections before the Chief Engineer, PVVNL, Gautam Budh Nagar, within two weeks, against the Executive Engineer's estimate dated 22.12.2022.
  • The Chief Engineer was directed to decide these objections within two months, and in any event by 15 August 2023.
  • The Chief Engineer was specifically directed to also decide the petitioner's objection regarding the imposition of GST in the estimate, since it formed part of the same estimate.
  • With these observations, the writ petition was disposed of — no finding was recorded either way on whether the GST charge or the estimate itself was correct.

Important Clarification

This order is a reminder that a GST-linked billing dispute embedded inside a utility or departmental estimate does not automatically become a matter for GST law or for the writ court to decide on merits. Where a statutory forum (here, the Chief Engineer under the Electricity Supply Code) exists to examine the estimate as a whole, courts will typically relegate even the tax component of that estimate to the same forum rather than carve it out for separate adjudication.

Sections Involved

  • Clause 4.6, Electricity Supply Code, 2005 (Uttar Pradesh) — objection mechanism against DISCOM estimates.
  • Article 226, Constitution of India, 1950 — writ jurisdiction invoked by the petitioner.

Decision – In Favour of

The petition was disposed of without any decision on the merits of either the electricity estimate or the GST amount included in it. The matter now stands remitted to the Chief Engineer, PVVNL, Gautam Budh Nagar, for a reasoned decision on both aspects.

Case Details

  • Court: High Court of Judicature at Allahabad
  • Case No.: WRIT-C No. 18537 of 2023
  • Neutral Citation: 2023:AHC:119830-DB
  • Coram: Hon'ble Salil Kumar Rai, J. and Hon'ble Arun Kumar Singh Deshwal, J.
  • Date of Order: 29 May 2023

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