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TMI Blog2018 (11) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... nt and for maintenance and repair of the power plant. Appellant discharges the tax liability on the portion received as maintenance and repair services but has claimed that no tax is payable on operating part of the contract. The issue is no more res integra. The Tribunal in the case of GVK power and infrastructure Ltd. [2018 (2) TMI 1027 - CESTAT HYDERABAD], where it was held that this maintenance under taken by the appellant is in order to keep the power plant in the working conditions; there is no interruption in power generation and transmission to the power grid. - operation of power plant is not taxable under maintenance and repair services. Appeal allowed - decided in favor of appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... wards operation of the power plant. The adjudicating authority has confirmed the demands so raised along with interest. In the revenue's appeal, the first appellate authority has set aside the demands on the ground that generation of power by the appellant is amounting to producing a non-excisable product during the period in question. 3. Learned counsel for the appellant after taking the Bench through the said operation and maintenance agreement and also the findings in the Order-in-Original, submits that the demand is only in respect of the operation portion. It is his submission that the operation portion and the amounts received for such operation included the various aspects of maintenance of the power plant, guaranteeing 24x7 power t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities were correct in coming to such conclusion. 5. On careful consideration of the submissions made, we find that the issue as correctly pointed out by the learned counsel is that whether the amounts received as consideration by the appellant for operating power plant on behalf of his client would be liable for the discharge of service tax under the heading "management, maintenance and repair services". 6. The facts are not in dispute. Appellant has entered into an agreement with M/s Lanco Kondapalli Power Plant Ltd for operation and maintenance of the power plant, vide which it was guaranteed 24x7 power, subject to periodical maintenance and was paid consideration as per the agreement. As per the annexure to agreement, it is noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of power plant for 24 x 7 in pursuance of such agreement, appellant prepares a detailed plan as to how to conduct maintenance of the power plant, repairs of various machinery and submits the plan to the power plant owners, in order to, give them advance intimation of the planned shutdown of the power plant. We find that this maintenance under taken by the appellant is in order to keep the power plant in the working conditions; there is no interruption in power generation and transmission to the power grid. Similar issue came up before this Bench in the case CLP Power India Ltd., wherein the Bench after referring to various case laws and producing excerpts from them, concluded operation of power plant is not taxable under maintenance an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing generated is a manufactured product, we find that the first appellate authority has relied upon the decision of the Tribunal in the case of NTPC Sail Power Company Pvt Ltd [2009-TIOL-1021-CES-KOL]. This particular decision was also cited before the Bench in the case of GVK Power and Infrastructure Ltd and the Bench in Para 12 has held that the ratio of the judgment of NTPC Sail Power Co. Pvt Ltd would also help the appellant GVK Power and Infrastructure Ltd as to that the generation of electricity being a manufactured product is being non-excisable, service tax liability does not arise under any services. We do not find any reason to deviate from such a view as already taken and recorded in GVK Power and Infrastructure Ltd. Accordingly, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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