2018 (5) TMI 1136 - AT - Service Tax

Benefit of N/N. 45/10 and 11/2010 ST - commercial and industrial construction service - manpower recruitment or supply agency service - Held that - it is clear that all the services which are provided in relation to transmission of electricity are exempted. The transmission of electricity is carried out by the Maharashtra State Electricity Transmission Board and for transmission of electricity whatever services used, all those services are exempted under N/N. 45/10 and 11/10 - appeal dismissed - decided against Revenue.

Summary

Issues:
Interpretation of exemption notifications under Notification No. 45/10-ST and 11/10-ST for services related to transmission of electricity.

Analysis:
The case involved a dispute regarding the admissibility of exemption notifications under Notification No. 45/10-ST and 11/10-ST. The respondent provided commercial and industrial construction services, manpower recruitment, and supply agency services to the Maharashtra State Electricity Transmission Company Limited. The respondent claimed exemption from paying service tax under the aforementioned notifications. Both lower authorities accepted the claim, leading the Revenue to file an appeal challenging the decision.

The Revenue argued that the notifications were applicable only for transmission services and not for services like commercial construction or manpower recruitment. They contended that since the services provided were not directly related to the transmission of electricity, they should not be covered under the exemption notifications.

On the other hand, the respondent's counsel argued that the notifications exempted all services related to the transmission of electricity, not just the transmission service itself. They cited various judgments to support their claim, emphasizing that the services provided by the respondent fell within the ambit of the exemption notifications.

After considering the submissions from both sides and examining the records, the Tribunal analyzed the language of the exemption notifications. The notifications clearly stated that all services related to the transmission of electricity were exempted from service tax. The Tribunal noted that the transmission of electricity was carried out by the Maharashtra State Electricity Transmission Board, and any services used in the transmission process were covered under the exemption notifications.

The Tribunal referred to previous judgments cited by the respondent's counsel, which had already settled the issue in favor of interpreting the notifications broadly to include all services related to the transmission of electricity. Therefore, the Tribunal upheld the decisions of the lower authorities, ruling that the services provided by the respondent were indeed covered under the exemption notifications. As a result, the Tribunal dismissed the Revenue's appeals, affirming the legality of the lower authorities' decisions.

In conclusion, the Tribunal's judgment clarified the scope of the exemption notifications under Notification No. 45/10-ST and 11/10-ST, emphasizing that all services related to the transmission of electricity were exempted from service tax, regardless of the specific nature of the services provided.