2014 (7) TMI 936 - AT - Service Tax

Erection of electricity transmission tower - Notification No.45/2010-ST dt. 20.7.2010 - Held that - By Notification No.45/2010-ST dt. 20.7.2010 issued under Section 11C of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1944, the Central Government directed that the service tax payable on the taxable services relating to transmission and distribution of electricity provided by the service provider to the service recipient, which was not being levied in accordance with the said practice, shall not be required to be paid during the period upto 26.2.2010 for all taxable services relating to transmission of electricity and the period upto 21.6.2010 for all taxable services relating to distribution of electricity - demand of tax is for the period May 2006 to May 2007 relating to transmission of electricity - Therefore, demand not sustainable - Decided in favour of assessee.

Summary

Issues:
1. Whether the demand of tax for the period May 2006 to May 2007 relating to transmission of electricity is sustainable in light of Notification No.45/2010-ST.

Analysis:
The Appellate Tribunal CESTAT CHENNAI, comprising of P K Das and R Periasami, JJ., heard the matter where the appellant had entered into a contract with Tamil Nadu Electricity Board (TNEB) for civil structure to facilitate the erection of electricity transmission tower. The impugned show cause notice revealed that the demand of tax was for the period May 2006 to May 2007 concerning the transmission of electricity. The Central Government had issued Notification No.45/2010-ST directing that service tax relating to transmission and distribution of electricity need not be paid for specific periods. The Tribunal noted that the demand of tax for the mentioned period was not sustainable due to the notification's provisions. Therefore, the impugned order was set aside, and the appeal was allowed with consequential relief. The stay application was also disposed of during the proceedings.

This judgment highlights the significance of statutory notifications in tax matters and how they can impact the sustainability of tax demands. The Tribunal's decision was based on a careful analysis of the relevant notification and its applicability to the specific period in question. By setting aside the demand of tax based on the notification's provisions, the Tribunal ensured that the appellant was not unfairly burdened with tax liabilities that were not required to be paid as per the government directive. The judgment showcases the importance of legal provisions and their proper interpretation in adjudicating tax disputes effectively.