2018 (4) TMI 113 - AT - Service Tax

Benefit of N/N. 45/2010-ST dated 20.07.2010 - appellant had provided Consultant Engineering Services to M/s.Power Grid Corporation ltd. and that from Power Grid Corporation appellant has totally received ₹ 2,01,89,673 for the period from September 2007 to November 2008 - Held that - in exercise of the powers conferred by section 11 C of the Central Excise Act, 1944, read with section 83 of the said Finance Act, the Central Government hereby directs that the service tax payable on said taxable services relating to transmission and distribution of electricity provided by the service provider to the service receiver, which was not being levied in accordance with the said practice, shall not be required to be paid in respect of the said taxable services relating to transmission and distribution of electricity during the aforesaid period, It is very clear from the exemption granted through the said notification that all services which were taxable and were relating to transmission and distribution of electricity were retrospective exempted through the said Notification dated 20.07.2010 - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Claiming relief under Notification 45/2010-ST
2. Demand of Service Tax on Consultant Engineering Services
3. Exemption under Notification 45/2010-ST for services related to transmission and distribution of electricity

Analysis:
1. The appellant did not claim relief under Notification 45/2010-ST when filing the appeal. However, they later filed a miscellaneous application to add this ground, stating that the appeal is covered by the said notification. The Revenue had no objection to this, and the application was allowed. The appeal was then taken up for final hearing with the consent of the Revenue.

2. The appellant was alleged to have provided "Consultant Engineering Services" to a company and received a specific amount for the services. A show cause notice was issued demanding Service Tax on the consideration received. The demand was confirmed in the order-in-original, leading the appellant to appeal before the Commissioner(Appeals) and subsequently before the Tribunal.

3. The appellant's counsel argued that all taxable services related to the transmission and distribution of electricity were exempted up to specific dates under Notification 45/2010-ST. It was undisputed that the Consulting Engineering Service provided was in relation to transmission and distribution of electricity. The Revenue's representative agreed that the issue fell within the purview of the said notification.

4. Upon considering the submissions and examining the records along with Notification 45/2010-ST, the Tribunal found that the exemption granted through the notification covered all taxable services related to transmission and distribution of electricity retrospectively. Consequently, the Tribunal allowed the appeal, setting aside the impugned order-in-appeal and granting the appellants consequential relief as per law.