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TMI Blog2018 (7) TMI 856X X X X Extracts X X X X X X X X Extracts X X X X ..... levy of service tax - demand cannot sustain. Supply of tangible goods service - renting of construction of equipment by the appellant to L&T - Works contract service in respect of hydro power projects - Held that:- Evidently, the value of these services being less than ₹ 10 lakhs is exempted under N/N. 6/2005-ST as all other income of the appellant falls under exempted services - the demand cannot sustain as it falls below threshold limit and requires to be set aside. Works contract service for construction of staff quarters for TNEB employees in the power project - N/N. 11/2010-ST and 45/2010-ST - Held that:- The Tribunal in Sima Engineering Constructions [2018 (5) TMI 405 - CESTAT CHENNAI] has considered the very same issue and held that such services of construction of staff quarters inside the power project is not levy to service tax as per the notifications - demand cannot sustain. Management, maintenance or repair service - services rendered by the appellant at Periyar Lower Camp and Suriliyar Lower Camp which are both small hydroelectric power projects - Held that:- These activities being services related to for transmission of electricity will be covered by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gainst the orders passed by Commissioner of Central Excise, Salem, the appellants are before the Tribunal in ST/40357/205, ST/40436/2015 and ST/40355/2015. Appeals ST/40140/2015 and ST/41537/2015 are filed by the appellants against the orders passed by Commissioner of Central Excise (Appeals), Madurai who upheld the confirmation of demand of service tax, interest and penalties. 4. On behalf of the appellants, ld. counsel Shri S. Durairaj submitted the details of each appeal which is noted as under:- Appeal No. ST/40357/2015 4.1 The total demand is ₹ 5,68,78,350/- for the period from 04/2008 to 06/2012. ₹ 5,29,07,825/- was demanded for the services of construction of various structures (sub-structure, super-structure, head race, tail race, penstock, weirs, piers, concrete bridge, support girders, aprons, switch yards of hydro power projects (generation of electricity); evident from para 17 of the impugned order) for TNEB Ltd, which is wholly owned by Government of Tamilnadu. In the impugned order, these activities were predominantly classified as works contract services and to a little extent as site formation services. These services are for generation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as stated above, such turnover was excluded to determine the thresh hold exemption of ₹ 10 lakhs as per notification 6/2005-ST, copy placed in the typed set. Therefore, all these years, the turnover of supply of tangible goods services is less than ₹ 10 lakhs. Therefore, the demand is not sustainable. Appeal No-ST/40355/2015 4.5 The total demand is ₹ 1,18,50,040/- for the period from 04/2008 to 06/2012. ₹ 1,15,03,478/- was demanded for the service of construction of various structures (sub-structure, super-structure, head race, tail race, penstock, weirs, piers, concrete bridge, support girders, aprons, switch yards of hydro power projects (generation of electricity) ; evident from para 14 of the impugned order) for TNEB Ltd, which is wholly owned by Government of Tamilnadu. In the impugned order, these activities were predominantly classified as works contract services and to a little extent as site formation services and man power supply services. These services are for generation of electricity in a hydro power project, which is in relation to/for transmission of electricity. Works contracts relating to power projects are not taxable services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by Government of Tamilnadu. In the impugned order, these activities were classified as management, maintenance or repair services. These services are for generation of electricity in a hydro power project, which is in relation to/for transmission of electricity. As per sub section 30 of Section 2 of Electricity Act, 2003, generating station includes staff quarters and other buildings. All services relating to/for transmission of electricity are exempted from payment of services tax by notification 11/2010-ST and 45/2010-ST. Catena of decisions is relied in this regard. Copies of the decisions are placed in the typed sets. These notifications are valid upto 30.6.2012. The demand is also for July, 2012 and August, 2012 out of the total demand of ₹ 51,688/- for the period year 2012-13. The turnover for 2011-12 is ₹ 2,06,166/- and for 2012-13 is ₹ 4,18,189/-. Such turnovers are well within the threshold exemption limit of ₹ 10 lakhs. Therefore, for July, 2012 and August, 2012 also the demand will not survive in view of notifications 6/2005-ST and 33/2012-ST. 5. The ld. AR Shri S. Govindarajan reiterated the findings in the impugned order. 6. Heard both s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ub-section (30) of Section 2 of Electricity Act, 2003, a generating station includes staff quarters and other buildings. Thus, the exemption under Notification Nos. 11/2010-ST and 45/2010-ST which exempts services in respect of hydro power projects would cover these services also. The Tribunal vide Final Order No. 41143 to 41146/2018 dated 13.4.2018 in Sima Engineering Constructions has considered the very same issue and held that such services of construction of staff quarters inside the power project is not levy to service tax as per the notifications. The demand therefore cannot sustain and requires to be set aside which we hereby do. 7.4 In ST/40140 and 41537/2015, the demand of service ax is made under management, maintenance or repair service on the services rendered by the appellant at Periyar Lower Camp and Suriliyar Lower Camp which are both small hydroelectric power projects. These activities being services related to for transmission of electricity will be covered by the exemption Notifications No. 11/2010 and 45/2010. The decisions in the case of PES Engineers (supra) would apply to the demand of service tax in respect of management, maintenance or repair services in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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