Case Details: Mytrah Energy India (P.) Ltd. vs. Union of India [2026] 185 taxmann.com 547 (Andhra Pradesh)
Judiciary and Counsel Details
- R Rashunandan Rao & T.C.D. Sekhar, JJ.
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Sai Sundeep Manchikalapudi, Adv. for the Petitioner.
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Suresh Kumar Routhu, Sr. SC for the Respondent.
Facts of the Case
The petitioner, a solar EPC supplier, was assessed in respect of supplies of solar power generating systems, and the assessment order passed during the pendency of the writ petition was challenged. It submitted that its supplies constituted a composite supply and contended that the explanation inserted by Notification No. 24/2018-Central Tax (Rate), dated 31-12-2018 providing for a 70:30 split of goods and services was optional and operative only from 01-01-2019. It was further contended that such split to the pre-01-01-2019 period was erroneous, particularly when the nature of supply had not been examined. It submitted that no determination had been made as to whether the supply resulted in immovable property or involved installation of movable goods, and thus the proper tax treatment was not ascertained. The matter was accordingly placed before the High Court.
High Court Held
The High Court held that Circular No. 163/19/2021-GST, dated 06-10-2021 did not mandate retrospective application of the explanation inserted by the Notification No. 24/2018-Central Tax (Rate), dated 31-12-2018, but merely permitted its application at the option of the taxpayer. It held that the 70:30 split was applied mechanically without examining the nature of the supply or the applicability of Section 8 of the CGST Act. The assessment also ignored pre-01.01.2019 turnover and wrongly assumed retrospective effect of the explanation. Accordingly, the assessment order was held unsustainable and the matter was remanded for fresh determination.
List of Cases Referred to
- Sterling and Wilson (P.) Ltd. v. Joint Commissioner [2025] 170 taxmann.com 539/108 GST 567/95 GSTL 402 (Andhra Pradesh) (para 8)
- Siemens Gamesa Renewable Power (P.) Ltd. v. Asstt. Commissioner ST [Writ Petition No. 4799 of 2022, dated 3-12-2025] (para 8)
- Arka Green Power (P.) Ltd. v. State of Andhra Pradesh [Writ Petition No. 11989 of 2022, dated 24-12-2025] (para 8).
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