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

[Satyvan Dagar]

Dear Team VCAOA

You increased the HVAC water pumping cost from ₹147.08 to ₹508. (Copy attached for your reference )

You told residents that circulating water through the pump requires more electricity, so you increased the HVAC water pumping cost from ₹147.08 to ₹508.
HVAC water pumping costs are billed by VCAOA and have nothing to do with the Enviro.

You issued bills with a retrospective date, January 1, 2025, and charged GST on all those bills, which continues to apply today.

You know very well that GST is generally not applicable on energy charges.
When the government is not charging you GST on electricity, on what basis are you charging residents GST? The GST you charged is illegal.

I am a resident of Vatika City and pay all my bills on time. If I find something wrong, it is my right to inquire about it. Asking this question does not hinder any of the RWA's work.

RWA members are elected representatives of the residents, and as such, it is your moral responsibility to listen to the residents and resolve their issues, but you do the complete opposite.

If you knowingly create illegal bills, charge incorrect GST, or continue to deduct money from my prepaid meter at will, I have every right to take legal action against you.

Stop misleading residents by claiming that raising your voice for your rights is legal threats.

If you truly care even a little about the residents' well-being, stop harassing them and do something for their benefit.

Regards,

Satyavan Dagar

Flat No 103,

Sovereign-2.

M No 9910927027

On Mon, 23 Mar 2026 at 12:09 PM, VCAOA <vcaoa....@gmail.com> wrote:

Mr. Dagar,

We have again checked up with M/S Enviro for the applicability of GST on chilled water services supplied by them to Sovereign Towers of Vatika City. They have submitted their response (Enviro's mail is attached herewith), which is very logical to us. We have also confirmed the same from our GST portal that this GST has been deposited by Enviro for the said services. 

We have issued circulars explaining the issue in detail many times to all Sovereign residents, as a result of which most residents have already cleared all their dues. 

I hope you will stop issuing legal threats over trivial matters and let the RWA function in all residents' best interests.

Thanks,

Team VCAOA

---------- Forwarded message ----------
From: Vatika Business Park BH <vati...@enviroindia.in>
To: VCAOA <vcaoa....@gmail.com>, shveta paul <shvetapa...@gmail.com>, Pawan Kumar Singh <pawan...@gmail.com>, Praveen Arora <pravee...@gmail.com>
Cc: Rajesh Kumar <rajes...@enviroindia.in>, Seema Das Patra <seemad...@enviroindia.in>
Bcc: 
Date: Fri, 20 Mar 2026 09:07:08 +0000
Subject: VCAOA - GST Explanatory note

To,

 

M/s Vatika City Apartment Owner Association

Sec-49, Sohna Road , GGN

 

 

Explanatory NOTE on GST

Enviro Integrated Facility Services Private Limited, (Service Provider) is engaged in providing chilled water supply for AC services to Vatika City Apartments Owners Association (Vatika City) for which the agreed sum will be charged. For the purposes of the services, the Service provider is chilling the water in the chiller plant located at the premises of Vatika City and supplying the chilled water to the sovereign apartments of Vatika City through pipelines. However, the onus of operations and maintenance of the chiller water plant is on the service provider. Therefore, the service provider is performing an activity to supply chilled water for cooling purposes to Sovereign Apartments of Vatika City. The period of service will be 8 months per season in a year with effect from 15th March 2023 to 15th November 2032 for 9 years. The service provider is raising an invoice on monthly basis in respect of the service of chilling water, which is subsequently supplied to Vatika City.

In this regard, a reference can be made to Section 7 read with Section 9 of the CGST Act, which interalia provides that supply of services will be levied a tax at the rate as may be prescribed by virtue of a Notification issued by the Government.

It is pertinent to note that SAC heading 9969 covers the activity of Electricity, gas, water and other distribution services. Further, sub-heading 996922 covers distribution of steam, hot water and air-conditioning supply through mains. In this regard, a reference can be made to SAC Explanatory notes which interalia provides that the distribution of chilled water for cooling purposes will be covered under Sub-heading 996922. The relevant extract of the explanatory notes is reproduced below for the sake of ready reference:

 

With regards to the applicable rate of GST, it may be noted that S. No. 13 of Notification No. 11/2017-CTR dated 28.06.2017 covers Heading 9969 which includes supply of electricity, gas, water and other distribution services and the applicable rate of GST will be at the rate of 18%.

In view of the foregoing, it can be said that the service provider is supplying chilled water for cooling purpose to Vatika City, and such supply constitutes a taxable service under GST. Accordingly, the said supply shall attract GST at the rate of 18%.

If you require any clarification, please free to contact with us. 

Thanking you,

 

(Enviro Integrated Facility Services Pvt Ltd.)

[Satyvan Dagar]

                                                                                      Last Reminder

Dear Team VCAOA,

I have already addressed this issue in my previous two emails; however, it is evident that the matter is being deliberately avoided rather than resolved.

You are continuing to levy GST charges which are not legally applicable. Despite repeated requests, no corrective action has been taken so far.

Please treat this communication as my final notice. In the event that the issue is not resolved immediately, I will be constrained to initiate appropriate action by filing formal complaints with the GST Department, HERC, and other competent authorities, including the police.

Please note that any consequences arising therefrom—including but not limited to investigations, penalties, financial liabilities, or any other adverse action—shall be solely attributable to Team VCAOA due to your continued non-compliance and failure to address the issue despite prior intimation.

I expect your immediate action in this matter.

Regards,

Satyavan Dagar

Flat No 103,

Sovereign-2.

M No 9910927027

[Satyvan Dagar]

Dear Team VCAOA,

Your replies continue to be misleading, evasive, and non-responsive to the specific issues repeatedly raised.

At the outset, it is pertinent to note that GST is not applicable on electricity/energy supply. When the Electricity Board itself has not levied GST, your unilateral imposition of GST lacks any apparent legal basis. You are requested to clearly specify the statutory provision under which such GST is being charged.

Further, you have failed to explain why, if GST was indeed applicable, it was not levied on monthly invoices issued from March 2015 to November 2025. This clearly reflects inconsistency, arbitrariness, and an attempt to impose retrospective charges without justification.

It is also relevant to highlight that the cooling infrastructure across the society operates on a similar model:

• The cooling plant for Sovereign Towers is installed in VBP, supplying chilled water to the towers.
• Similarly, the cooling plant for Vatika City Market is installed in the basement of IXIA Tower, from where chilled water is supplied.

In light of the above, the billing treatment must necessarily be uniform. If GST is being levied on Sovereign Towers, the same should have been applied to Vatika City Market as well. Kindly confirm whether GST has been levied on Vatika City Market billing. Your continued silence on this critical issue raises serious concerns regarding selective and arbitrary application of charges.

Despite repeated communications, you have failed to provide any clear or reasoned response and are instead raising demands that appear to be unjustified and legally untenable.

Further, in response to my non-payment of this disputed and unsubstantiated demand, the air-conditioning supply to my residence was disconnected on 16 April. Electricity and air-conditioning services constitute essential utilities, and their disconnection under such circumstances is unlawful, arbitrary, and amounts to harassment.

Even today, you have issued a communication threatening further disconnection in case of non-payment of the alleged GST arrears. Such coercive and high-handed actions are unacceptable and contrary to law.

In view of the above, I am constrained to state that I will be compelled to initiate appropriate proceedings before the competent authorities, including the GST Department, for necessary action. Any financial, legal, or reputational consequences arising therefrom shall be solely attributable to your conduct.

Without prejudice to my rights and contentions, and strictly under protest, I am depositing the demanded GST amount.

You are hereby called upon to provide a clear, specific, and point-wise response to all the issues raised above at the earliest.

Regards,

Satyavan Dagar

Flat No 103,

Sovereign-2.

M No 9910927027

On Sat, 18 Apr 2026 at 2:08 PM, VCAOA <vcaoa....@gmail.com> wrote:

  Mr. Dagar,

We reiterate that  M/S Enviro for the applicability of GST on chilled water services supplied by them to Sovereign Towers of Vatika City. They have submitted their response, which is very logical to us. We have also confirmed the same from our GST portal that this GST has been deposited by Enviro for the said services. 

We have issued circulars explaining the issue in detail many times to all Sovereign residents, as a result of which 90% of the residents have already cleared all their dues. We request you to kindly clear all your dues, as we have to make the payments to Enviro accordingly. 

Thanks,

Team VCAOA