2019 (2) TMI 580 - AT - Service Tax

Erection, Commissioning or Installation Services - appellant is engaged in providing services in relation to laying and conversion of power transmission lines and providing services to various DISCOMS under Transmission Corporation of Andhra Pradesh and A.P. Transco etc. - N/N/. 45/2010-ST, dated 20.07.2010 - period involved in this case is 10.09.2004 to 30.09.2008 - Held that - On perusal of the notification No. 45/2010-ST, dated 20.07.2010, it is found that the said notification grants retrospective exemption to all the service providers for the taxable services relating to transmission and distribution of electricity till 21.6.2010. The said notification covers the period involved in the case in hand - the demand for the service tax liability, interest thereof and the penalties imposed on this account on Erection, Commissioning or Installation Services are unsustainable. GTA Services - transportation of goods by road - Held that - The said services are received by the appellant and we also note that appellant had already discharged the tax liability along with interest - the tax liability and the interest thereof needs to be upheld. Penalty - Held that - For the period in question, the entire taxability on Goods Transport Agency service is in the hands of the recipient of the services was in a fluid state and was being contested at different forums - appellant had made out a case under section 80 of the Finance Act, 1994 for setting aside the penalty imposed and has also made out a case under section 73 (3) of the Finance Act, 1994 - Penalty set aside. Appeal disposed off.

Summary

Issues:
1. Early hearing of appeal due to a sizeable amount involved.
2. Service tax liability on services provided to DISCOMS and Transmission companies.
3. Exemption under notification No. 45/2010-ST for services related to transmission and distribution of electricity.
4. Penalty imposition on service tax liability and Goods Transport Agency (GTA) services.

Analysis:
1. The Revenue filed an application for early hearing of appeal No. ST/807/2009 due to a significant amount involved. The request was granted, and the appeal was directed against Order-in-Original No. 31/2009-ST, dated 18.08.2009.

2. The appellant was engaged in providing services related to power transmission lines and received services from Goods Transport Agency for goods transportation. The lower authorities held that service tax liability existed for services provided to DISCOMS and Transmission companies. The appellant contended that the issue was covered by notification No. 45/2010-ST, exempting services related to electricity transmission retrospectively until June 21, 2010. Reference was made to previous judgments supporting this position.

3. Upon careful consideration, it was found that the appellant provided services to electricity transmission companies during a specific period, and the retrospective exemption under notification No. 45/2010-ST applied to the case. Therefore, the demand for service tax liability, interest, and penalties related to Erection, Commissioning, or Installation Services were set aside.

4. Regarding GTA services, the appellant had already paid the tax liability and interest. The liability was upheld, but penalties were set aside considering the fluctuating nature of taxability on GTA services during the relevant period. The appellant's case under sections 80 and 73(3) of the Finance Act, 1994, was accepted, leading to the setting aside of penalties imposed by the adjudicating authority.

5. The appeal was disposed of accordingly, with the operative portion of the order pronounced in open court at the conclusion of the hearing.