9911796707
TMI Blog2017 (9) TMI 1120X X X X Extracts X X X X X X X X Extracts X X X X ..... for retrospective operations - the services rendered by the appellant in connection with transmission (upto 26.02.2010) and distribution (upto 21.06.2010) are exempted from tax liability. For the period post 26.02.2010 (for transmission), as the Notification stipulates that taxable service provided to any person, by any other person for transmission of electricity is exempt from Service Tax. Neither the taxable service nor the provider of service, nor the recipient of service is qualified by any restriction. The Revenue contends that the service for transmission of electricity is only exempt - the services rendered by the appellant, wherever they are for transmission of electricity are to be exempted. In other words, the exemption under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der held that the appellants are liable to pay Service Tax of ₹ 1,23,64,174/- for the period 2007-08 to 2011-12. He also imposed equal amount of penalty under Section 78 and further a penalty of 5,000/-, ₹ 3,25,600/- and ₹ 82,000/- under Section 77 of the Finance Act, 1994. Penalty under Section 76 was also imposed. 2. The ld. Counsel submitted that the tax liability of the appellant was confirmed under 3 different categories, namely, erection, commissioning or installation service (Rs.74,05,845/-) works contract service (Rs.48,67,526/-) and management maintenance or repair service (Rs.90,802/-). He submitted that they have provided services in relation to transmission and distribution of electricity by the above 2 elec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h transmission of electricity re-computation of tax liability has to be made considering the abatement available to the works contract service as the values taken are on the gross basis. As the tax has not been charged in invoice and the amount was not originally had any reference to the tax, calculation of tax liability, if any, should be based on cum-tax computation. He pleaded that no penalty is liable, as the Government itself came with Notifications by exemption including retrospective exemption in 2010. 3. The ld. AR opposed the appeal. She submitted that the claim of the appellant in Notification No.45/2010 and 11/2010 has been examined by the original authority and found not tenable. It is submitted that the appellant is not prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant, wherever they are for transmission of electricity are to be exempted. In other words, the exemption under Notification No.11/2010-ST is not only for the taxable service of transmission of electricity. The appellants claimed that there is no tax liability under erection, commissioning or installation service for the period post 26.02.2010 as all their contracts are composite contracts involving supply of materials, as well as, provision of service. We have perused the scope of such contracts. It is apparent that these contracts involves supply of material and should have been correctly classified under works contract service, as claimed by appellant. Accordingly, we hold Service Tax liability in any other category of servi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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