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TMI Blog2014 (8) TMI 517X X X X Extracts X X X X X X X X Extracts X X X X ..... eiver; and such service would be squarely covered under exemption provided under this notification. - referring to the decision in the case of Paschimanchal Vidyut Vitran Nigam [2012 (8) TMI 688 - CESTAT, NEW DELHI], demand set aside - matter remanded back. - Appeal No. : ST/10028,10029/2014-DB - ORDER No. A/11422-11423/2014 - Dated:- 24-7-2014 - MR. M.V. RAVINDRAN AND MR. H.K. THAKUR, JJ. For the Appellant : Shri S.J. Vyas (Advocate) For the Respondent : Shri J. Nair (A.R.) JUDGEMENT Per: Mr. M.V. Ravindran; These two appeals are filed against the OIA No.RJT-EXCUS-000-APP-454-455-13-14, dt. 03.10.2013. 2. As these appeals are raising a common issue and are in respect of the very same assessee, they are being d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat distribution of electricity energy cannot be effectively accomplished without installation of sub-stations, transmission towers and installation of meters. Hence, such activity is not taxable. 6. Ld. Departmental Representative reiterates the findings and also submits that the appellant had provided these services to private parties like M/s. Essar Power Gujarat Ltd. and M/s. Jyoti Engineers Contractors Pvt. Ltd. 7. Ld. Counsel in rejoinder submits that they are not contesting the issue of service tax liability on the services rendered to M/s. Essar Power Gujarat Ltd. and M/s. Jyoti Engineers Contractors Pvt. Ltd. and have discharged the tax liability alongwith interest which is recorded in the impugned order. 8. We have co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Exemption Notification dated 22-6-2010 and the immunity Notification dated 20-7-2010, the conclusion is compelling that all taxable services provided in relation to distribution of electrical energy are exempt from the liability to Service Tax. The expression in relation to is of wide import and indicates all activities having a direct and proximal nexus with distribution of electrical energy. Distribution of electricity energy cannot be effectively accomplished without installation of sub-stations, transmission towers and installation of meters to record electricity consumption for periodic billing and recovery of charges. 6. In M.P. Power Transmission Co. Ltd. v. CCE, Bhopal - 2011 (24) S.T.R. 67 (Tri.-Del.) Revenue demand of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in respect of service tax liability on services rendered to the Government of Gujarat undertaking, we also set aside the penalties imposed on the appellant for the tax demanded in respect of the private organizations for which the appellant is not in appeal. The penalties imposable on the service tax liability that arises for the services rendered to the private parties are set aside by invoking the provisions of Section 80 of the Finance Act, 1994; for the reason that there could have been a bonafide belief that laying of cables, transmission towers to private parties may not be a taxable event. 13. In view of foregoing, the appeals are allowed to the extent as indicated hereinabove. (Operative part of the order pronounced in the C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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