Subject: Legal Notice Regarding Illegal Levy of GST and Retrospective Billing of HVAC Charges

[Satyvan Dagar]

Dear Team VCAOA,

This notice is issued with reference to your Circular No. 29-05-2025#14-05 titled “Implementation of Sovereign Charges” for Vatika City, Sector-49.

You have stated that HVAC water is circulated through pumps and, citing electricity consumption, you have increased the HVAC water pumping charges from ₹147.08 to ₹508. Further, these charges have been imposed retrospectively w.e.f. 01.01.2025, and GST has been levied on the same.

The above actions are prima facie illegal, arbitrary, and contrary to established legal provisions, for the following reasons:

1. Illegal Retrospective Billing:

   As per your own circular, the said charges were approved in the GBM dated 04.05.2025. Imposing charges retrospectively from 01.01.2025 is arbitrary and without authority of law. Such retrospective recovery, without prior consent and notice, is unsustainable and violative of basic principles of natural justice.

2. Unlawful Levy of GST:

   • As per Schedule III of the CGST Act, 2017, electricity is treated as neither a supply of goods nor a supply of services, and hence is not subject to GST.

   • Further, as per established GST principles, any charge that is intrinsically linked to electricity distribution/consumption forms part of a non-taxable supply.

   • In absence of a valid classification under the CGST Act, the levy of GST on HVAC water pumping charges (being directly linked to electricity usage) is illegal and without jurisdiction.

3. Violation of Statutory Provisions:

   The unauthorized collection of GST without legal backing may attract penal provisions under:

   • Section 76 of the CGST Act, 2017 (tax collected but not payable), and

   • Other applicable provisions relating to wrongful collection and misrepresentation of tax liability.

4. Unlawful Enrichment:

   The collection of such charges, including GST, without lawful authority amounts to unjust enrichment and is liable to be refunded along with applicable interest.

In view of the above, you are hereby called upon to:

• Provide the specific legal provisions under which:

  • Retrospective billing has been applied, and

  • GST has been levied on HVAC water pumping charges.

• Immediately withdraw the illegal GST component and retrospective charges.

• Refund/adjust the amount already collected under these heads along with applicable interest.

Please take notice that if a satisfactory reply is not received within 7 days from the receipt of this notice, I shall be constrained to initiate appropriate legal proceedings before the competent authorities, including but not limited to the GST Department and Registrar of Societies, at your entire risk as to cost and consequences.

This may be treated as a final notice.

Regards,

Satyavan Dagar

Flat No 103,

Sovereign-2.

M No 9910927027