2015 (3) TMI 1106 - AT - Service Tax

Transmission of electricity or distribution - Exemption under Notification No. 45/2010-ST dated 20.07.2010 till 2010 and subsequently under Notification No. 11/2010-ST dated 27.02.2010 - Held that - There is no contrary finding that manpower supply service has not been provided to a transmission and distribution company. There is no detail available as to how the service provided by the appellants has to be treated as the one provided prior to transmission and distribution of electricity. Notification No. 45/2010 exempts all the services rendered in relation to transmission and distribution of electricity and there is no distinction made prior to commencement of transmission or distribution subsequently. It is quite clear that in this case services are provided to M/s. APCPDCL which is engaged only in transmission of electricity and therefore services provided by them have to be considered as the one provided for transmission not distribution. Under these circumstances we consider that the appellants clearly are eligible for the benefit of Notification No. 45/2010. In view of the fact that the issue involved has been considered in detail and there is nothing left to look at, it would be appropriate to allow the appeal itself at this stage rather than keeping the matter pending for years before this Tribunal. - Decided in favour of assessee.

Summary

Issues:
Interpretation of service tax exemption notifications for services related to transmission and distribution of electricity.

Analysis:
The case involved a dispute regarding the applicability of service tax on services provided in relation to transmission and distribution of electricity. The appellant claimed exemption from service tax under Notification No. 45/2010-ST dated 20.07.2010 and subsequently under Notification No. 11/2010-ST dated 27.02.2010, which were held to be retrospective in effect. The original authority did not consider the liability of service tax as the appellant had deposited the entire amount and produced the challan. However, the Commissioner (Appeals) denied the benefit of the notification, stating that the services were provided prior to distribution and transmission of electricity without providing detailed reasoning for this conclusion. The Tribunal noted that there was no evidence to suggest that manpower supply service was not provided to a transmission and distribution company. The Tribunal emphasized that Notification No. 45/2010 exempts all services related to transmission and distribution of electricity without making a distinction based on the timing of service provision. It was established that the services were provided to a company engaged solely in transmission of electricity, indicating that the services were for transmission, not distribution. Therefore, the Tribunal concluded that the appellants were eligible for the exemption under Notification No. 45/2010 and allowed the appeal, setting aside the impugned order and providing consequential relief to the appellant. The stay application was also disposed of in light of the decision.