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TMI Blog2014 (11) TMI 336X X X X Extracts X X X X X X X X Extracts X X X X ..... 45/10-ST, all taxable services rendered 'in relation to' transmission and distribution of electricity have been exempted from the purview of service tax. The expression 'relating to' is very wide in its amplitude and scope as held by the Hon'ble Apex Court in Doypack Systems P. Ltd. [1988 (2) TMI 61 - SUPREME COURT OF INDIA]. Therefore, all taxable services rendered in relation to transmission/distribution of electricity would be eligible for the benefit of exemption under the said Notification for the period prior to 27.02.2010. Various activities undertaken by the appellant, though classifiable under Commercial or Industrial Construction prior to 01.06.2007 or under works contract service on or after 01.06.2007, would be eligible for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax demand of ₹ 2,04,14,368/- along with interest thereon and imposing equivalent penalty against the appellant M/s. Kedar Constructions. Aggrieved of the same, the appellant is before us. 2. The ld. counsel for the appellant submits that the appellant undertook the construction of sub-station for electricity transmission and also maintenance/repair of sub-station for Maharashtra State Electricity Transmission Co. Ltd. and also as sub-contractor to Sunil Hi-Tech and Suraj Constructions. These activities also related to transmission of Electricity. Such activities have been exempted from service tax vide Notification No. 45/10-ST dated 20.7.2010. Vide the said Notification, exemption has been provided on taxable service relating to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut Vitran Nigam Ltd. 2013 (30) STR 259 and Shri Ganesh Enterprises - 2014-TIOL-187-CESTAT-BANG. In these decisions, it has been held that in view of the retrospective exemption vide Notification 45/2010-ST granted to services provided relating to electricity transmission, the demands are not sustainable. As regards the period post 26.02.2010, though the expression used is services rendered 'for distribution of electricity', as per the Supreme Court decision in the case of Indian chamber of Commerce [AIR 1976 SC 348], the expression 'for; has to be interpreted as 'for the purposes of'. As per the Electricity Act, 2003, 'transmission' has been defined to include conveyance of electricity by means of transmission li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... foresaid exemption. Reliance is placed on the decision of the Tribunal in the case of Telco Construction Equipment Co. Ltd. [2013 (32) STR 482] wherein it was held that unless there is a integral nexus between the output taxable service and the input service, the benefit of Cenvat Credit would not accrue. Accordingly, it is prayed that the impugned demands are sustainable in law. 4. We have carefully considered the submissions made by both sides. 5. We notice that out of the total demand confirmed of ₹ 2,04,14,368/- bulk of the demand of ₹ 1,90,47,124/- pertains to Commercial or Industrial Construction service rendered to Maharashtra State Electricity Transmission Co. Ltd., Maharashtra State Electricity Distribution Co. Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upra. Therefore, the confirmation of service tax demand in respect of the construction, maintenance or repair activities undertaken by the appellant so far as it relates to the transmission/distribution of electricity cannot be sustained in law. As regards the other demands which has been confirmed in respect of construction of transformer station for the sugar factory or GTA service etc. the appellant is not disputing the tax liability and therefore in respect of the other activities of the appellant which are not related to either transmission or distribution of electricity, the demands confirmed are upheld along with interest. 7. In the facts and circumstances of the case, since the issue relates to interpretation of an exemption Noti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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