2012 (7) TMI 27 - AT - Service Tax

Applicability of Notification No.45/10 dated 20.07.2010 issued under section 11C - Held that - Powers conferred by section 11C R.W.S 83 of the said Finance Act the service tax payable on said taxable services relating to transmission and distribution of electricity provided by the service provider to the service receiver not being levied in accordance with the said practice during the period up to 26th day of February, 2010 for all taxable services relating to transmission of electricity and the period up to 21st day of June, 2010 for all taxable services relating to distribution of electricity - in favour of assessee.

Summary

Issues:
Waiver of pre-deposit of Service Tax, application of Notification No.45/2010 under section 11C of the Finance Act, 1994, sustainability of Commissioner's Order-in-Original.

Analysis:
The applicant sought a waiver of pre-deposit of Service Tax amounting to Rs.66,47,95,520 along with penalties imposed under the Finance Act, 1994. The Tribunal decided to dispose of the appeal without the pre-deposit requirement, indicating that the appeal itself could be resolved at that stage. The appellant contended that a Notification (No.45/2010) issued under section 11C and made applicable to the Finance Act, 1994, regarding the levy of service tax on transmission and distribution of electricity, should be considered. The Notification exempted the service tax on such services during specific periods if not levied according to prevailing practices. The Tribunal found the Commissioner's Order-in-Original unsustainable in law based on the Notification's applicability and set it aside, ultimately allowing the appeal and disposing of the stay petition as well.