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TMI Blog2012 (10) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... pped substantial demand raised vide show cause notice and confirmed service tax demand of Rs. 50775/- against assessee under Section 73(1) and (2) of Finance Act, 1994 and also imposed penalty of Rs.10,15,514/- under Section 78 of Finance Act, 1994 and further penalty of Rs.1,000/- under Section 77. 2. Briefly put the facts relevant for disposal of these appeals are that the appellant assessee is engaged in the purchase of electricity from Uttar Pradesh Power Corporation Ltd. and transmitting it to various consumers within its jurisdiction. 3. The department pursuant to the intelligence received came to know that apart from transmission of electricity, the appellant assessee was also engaged in the business of "erection, commissioning and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charges from the staff i. Excess found of physical verification of stores j. Miscellaneous receipts There can not be any service tax on any of the above heads of "other income" mentioned above. They further submitted that the allegation in the show cause notice the "other income" is relating only to receipts against taxable services is based on presumption and assumption as the details of "other income" where already given in the audited balance sheet provided by them. On merits the appellant also raised the plea of limitation on the ground that there was no justification for invoking extended period of five years. 6. The jurisdictional Commissioner vide the impugned order dropped substantial portion of the demand raised vide show cau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "other income" detailed in the statement of account of the assessee relates to the services other than transmission and distribution of" electricity as such adjudicating authority has wrongly dropped substantial portion of demand raised vide the show cause notice. Learned AR thus argued as to allow the appeal preferred by the department and modify the impugned order to confirm the demand raised in show cause notice. 11. We have considered the rival submissions and perused the record. 12. The only issue for determination in these appeals is whether or not the services provided by the assessee in respect of erection, commissioning and installation as also technical testing and analyses and installation of meters at the premises of electrici ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the service receiver, which was not being levied in accordance with the said practice, shall not be required to be paid in respect of the said taxable services relating to transmission and distribution of electricity during the aforesaid period." 14. On careful reading of the aforesaid notification we find that this notification exempts the services relating to transmission and distribution of electricity provided by the service provider to the service receiver from the incidence of levy of service tax. Admittedly, the assessee is engaged in transmission and distribution of electricity after purchasing the same from U.P. Power Corporation Limited. Since the assessee is selling electricity to the consumer, in our view for billing the con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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