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2016 (1) TMI 676 - AT - Service TaxRectification of Mistake - Revenue is of the view that the said Notification No. 45/2010-ST dated 20.07.2010 would apply only to the services provided in relation to transmission and distribution of electricity and not to those relating to power generation and supply of electricity - Held that - The application for Rectification of Mistake is devoid of merits as we find that by Notification No. 45/2010-S.T, Central Government had retrospectively exempted all the services rendered to the transmission and distribution of electricity provided for the period 26.02.2010 upto 21.06.2010. The words used in the Notification are for the services relating to transmission and distribution of electricity and undisputed facts are that NTPS Nashik are engaged in power generation and supply of electricity . The supply of electricity cannot take place except by way of transmission and distribution. In view of this, we find that there is no error in order. Accordingly the application for Rectification of Mistake is dismissed. - Decided against revenue
Issues involved:
Rectification of Mistake in a final order regarding service tax exemption for services provided to a power generation and supply company. Analysis: The issue in this case revolves around a Rectification of Mistake application filed by the Revenue concerning an error apparent in the final order dated 15.04.2014. The appeal pertains to the remission of service tax under "manpower recruitment and supply agency" services for recruiting and supplying manpower to a power generation and supply company. The Revenue argues that a specific Notification No. 45/2010-ST dated 20.07.2010, which provided an exemption for services related to the transmission and distribution of electricity, should not apply to services related to power generation and supply. The distinction between "Power Transmission and distribution" and "Power Generation" is crucial in this context. Upon hearing the arguments, the Tribunal analyzed the Notification and concluded that the Central Government had indeed exempted all services rendered to the transmission and distribution of electricity retrospectively for a specific period. The Tribunal noted that the wording of the Notification specifically mentioned services relating to transmission and distribution of electricity. Since the power generation and supply company in question was engaged in power generation and supply of electricity, which inherently involves transmission and distribution, the Tribunal found no error in the initial order. Consequently, the Rectification of Mistake application was dismissed, affirming the original decision. This judgment underscores the importance of interpreting legal provisions and notifications accurately in tax matters. It clarifies that exemptions and regulations must be applied diligently, considering the specific nature of services provided and the scope of relevant notifications. The Tribunal's analysis highlights the need for a comprehensive understanding of the legal framework governing tax exemptions to ensure fair and consistent application in similar cases.
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