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2023 (10) TMI 317 - AT - Service TaxServices in relation to transmission or distribution of electricity - period 2005- 2009 - Exemption form service tax under N/N. 45/2010-ST dated 20/7/2010 or not - HELD THAT - Notification No. 45/2010 was issued by CBEC in order to put to rest all the litigations which were prevailing during the period 2005 to 2010. After this notification was issued, the Tribunals have been consistently holding that any service provided in relation to transmission or distribution of power shall be eligible for the exemption from service tax payment. This bench in the case of COMMISSIONER OF CENTRAL TAX VERSUS SRI SRINIVASA ELECTRICAL WORKS 2023 (7) TMI 1298 - CESTAT HYDERABAD has held Facts on the records were specifying that the services rendered by the respondent assessee are covered under scope of exemption granted vide Notification No. 45/2010-ST till the period 21.06.2010, in respect of service to distribution company and till 26.02.2010 in respect of transmission companies. Accordingly, the demand for the relevant period stands set aside. Appeal allowed.
Issues involved:
The issue involves the liability of the appellant to pay Service Tax for providing services of erection of electric distribution transformers to Power Transmission and Distribution Companies, and the applicability of Notification No. 45/2010 granting exemption from service tax for activities related to the distribution of electricity during the period in question. Summary: Liability to pay Service Tax: The appellant provided services of erection of electric distribution transformers to both Power Transmission and Distribution Companies and main contractors. A Show-Cause notice was issued demanding Service Tax, which the appellant partially paid. The Commissioner(Appeals) upheld the Order-in-Original, leading the appellant to appeal before the Tribunal. Applicability of Notification No. 45/2010: The appellant argued that their services are covered by Notification No. 45/2010, which exempts service tax for activities related to the distribution of electricity. Citing various case laws, the appellant contended that services provided during the period in question should not be subject to service tax. The appellant sought exemption based on this notification. CBEC Circular and Refund Eligibility: The learned AR referred to Circular No. 123 -5/2010 clarifying the scope of services in cable laying activities. Even if the appellant is eligible for exemption under Notification No. 45/2010, the AR argued that the appellant would not be entitled to a refund of any Service Tax paid earlier. Tribunal's Decision: After considering arguments from both sides and examining the documents, the Tribunal noted that Notification No. 45/2010 aimed to resolve litigations prevailing between 2005 to 2010 regarding service tax on activities related to power transmission and distribution. Citing a previous case, the Tribunal held that services provided in relation to transmission or distribution of power are eligible for exemption from service tax payment. Consequently, the Tribunal allowed the appeal filed by the appellant, following the precedent set in previous cases. Separate Judgment: No separate judgment was delivered by the judges in this case.
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