2015 (6) TMI 746 - AT - Central Excise

Benefit of Notification No.45/2010-ST dated 20/07/2010 - Applicant executed Civil Construction Foundation Work and Erection of Power Transmission and Sub-Station for Tamil Nadu Electricity Board - Held that - Tribunal in the case of K. Shanmugavelu Vs Commissioner of Central Excise reported in 2014 (7) TMI 936 - CESTAT, Chennai set aside the demand of tax for the period May,-06 to May,-07 relating to civil structure to facilitate transmission of electricity. In the present appeal, we do not find any clear finding on the construction of sub-station of Tamil Nadu Electricity Board. Hence, it is appropriate, the matter should be examined by the Adjudicating authority in the light of the Exemption Notification. Accordingly, we set aside the impugned orders. Matter is remanded back to the Adjudicating authority - Decided in favour of assessee.

Summary

Issues involved: Exemption notification applicability to construction work for Tamil Nadu Electricity Board.

Analysis:

The judgment by the Appellate Tribunal CESTAT Chennai, delivered by Shri Pradip Kumar Das, addresses the issue of exemption notification applicability to construction work carried out for the Tamil Nadu Electricity Board. The Tribunal, after disposing of the stay application, proceeded to decide the appeal. It was noted that the applicant had executed Civil Construction Foundation Work and Erection of Power Transmission and Sub-Station for the Tamil Nadu Electricity Board. The applicant argued that a specific notification exempted the demand of tax related to transmission and distribution of electricity till certain dates. The Tribunal referred to a previous case where a demand of tax related to civil structures for electricity transmission was set aside. However, in the present appeal, the Tribunal found no clear finding on the construction of the sub-station for the Tamil Nadu Electricity Board. Therefore, the Tribunal remanded the matter back to the Adjudicating authority for a fresh decision considering the Exemption Notification and relevant case laws. The appeal was allowed by way of remand, and the stay application was disposed of. The judgment emphasizes the importance of a thorough examination of the exemption notification and relevant legal precedents in determining the tax liability for construction work related to electricity transmission and distribution.