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2024 (3) TMI 559 - AT - Service Tax


Issues:
1. Taxability of services related to distribution of electricity to power distribution companies
2. Taxability of services provided to Educational Institutions, CPWD, and Railways
3. Invocation of extended period for demand
4. Imposition of penalties under Section 76, 77(2), and 78 of Finance Act, 1994

Taxability of services related to distribution of electricity to power distribution companies:
The Appellant, registered for taxable services, provided services including erection, commissioning of electrical sub-stations, construction of switch yards, and other related works to power distribution companies. A show cause notice was issued demanding service tax, which was confirmed by the Commissioner. The Appellant contended that the services are exempt under Notification No. 45/2010-ST. The Tribunal, after considering the submissions, set aside the demand of tax amounting to Rs.1,09,26,745 as the services were covered by the said notification.

Taxability of services provided to Educational Institutions, CPWD, and Railways:
The Appellant also provided services to Educational Institutions, CPWD, and Railways. The demand for these services was confirmed due to non-production of agreements. However, agreements produced later confirmed that the services were provided to non-commercial organizations, not intended for commerce or industry. The Tribunal set aside the demand amounting to Rs.10,04,292 for these services.

Invocation of extended period for demand:
The demand for taxes related to certain services was made by invoking the extended period of limitation. However, as the Tribunal found the services to be exempt or non-taxable, the demand was set aside.

Imposition of penalties under Section 76, 77(2), and 78 of Finance Act, 1994:
The Appellant argued against the imposition of penalties under Section 76 and 78, citing case laws to support their stance. The Tribunal considered the submissions and set aside the demand of interest and penalties under Section 76 and 78 of the Finance Act, 1994.

Conclusion:
After considering the submissions and case laws cited, the Tribunal allowed the appeal in part and set aside the impugned order. The demand for taxes on certain services was overturned based on exemptions and non-taxability, and the penalties under Section 76 and 78 were also set aside.

 

 

 

 

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