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2015 (3) TMI 597 - AT - Service Tax


Issues:
1. Rejection of appeal due to non-payment of pre-deposit
2. Interpretation of Notification No.45/2010-ST regarding exemption for taxable services related to transmission and distribution of electricity

Issue 1: Rejection of appeal due to non-payment of pre-deposit
The appellant's appeal was rejected by the Tribunal on the basis that they did not make the required pre-deposit of 50% of the tax demanded. The appellant had been working as a subcontractor for a project involving the construction of electrical substations for a specific scheme. The demand amount was Rs. 22,25,116. The appellant had claimed the benefit of Notification No.45/2010-ST, which provides exemption for taxable services related to transmission and distribution of electricity. The original adjudicating authority had denied this claim, stating that the exemption was only for the service of transmission provided by the transmission company. However, the Tribunal found that the Notification actually exempts all taxable services related to transmission and distribution of electricity during the relevant period, not just those provided by the transmission company. Therefore, the Tribunal set aside the impugned order and remanded the matter to the Commissioner (A) to hear the appeal without insisting on any pre-deposit.

Issue 2: Interpretation of Notification No.45/2010-ST regarding exemption
The key point of contention in this issue was the interpretation of Notification No.45/2010-ST, which provides exemption for taxable services related to transmission and distribution of electricity. The original adjudicating authority had interpreted the notification to apply only to the taxable service of transmission provided by the transmission company. However, the Tribunal disagreed with this interpretation and held that the exemption covered all taxable services related to transmission and distribution of electricity during the relevant period. This interpretation allowed the appellant to be eligible for the benefit of the Notification and justified the setting aside of the impugned order that rejected the appeal due to non-payment of pre-deposit. The Tribunal's decision to remand the matter for a fresh hearing without insisting on pre-deposit was based on this revised interpretation of the Notification.

In conclusion, the Tribunal's judgment addressed the issues of rejection of the appeal due to non-payment of pre-deposit and the interpretation of Notification No.45/2010-ST regarding exemption for taxable services related to transmission and distribution of electricity. The Tribunal's decision to set aside the impugned order and remand the matter for a fresh hearing without pre-deposit was based on the finding that the appellant was eligible for the benefit of the Notification, contrary to the original adjudicating authority's interpretation.

 

 

 

 

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