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TMI Blog2023 (4) TMI 660X X X X Extracts X X X X X X X X Extracts X X X X ..... whether service tax could be levied on the amount collected by the appellant towards consultancy charges. This issue was examined by a Division Bench of the Tribunal in MADHYA PRADESH POORVA KSHETRA VIDYUT VITRAN CO. LTD. VERSUS PRINCIPAL COMMISSIONER CGST AND CENTRAL EXCISE BHOPAL [ 2021 (2) TMI 155 - CESTAT NEW DELHI ] and after placing reliance upon the decision of the Gujarat High Court in TORRENT POWER LTD. VERSUS UNION OF INDIA [ 2019 (1) TMI 1092 - GUJARAT HIGH COURT] , the Tribunal held that It is clear from the aforesaid judgment of the Gujarat High Court that the activities that are related/ancillary to transmission and distribution of electricity would be exempt from payment of service tax since transmission and distribution of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vendors and contractors without giving legal right of possession and effective control. Learned counsel for the appellant has not been able to controvert the findings recorded by the Commissioner in the impugned order. The confirmation of the demand under this head is, therefore, justified - Demand upheld. The confirmation of demand on the amount collected on account of consultancy charges or liquidated damages cannot be sustained and is set aside. However, the confirmation of demand under hire charges is upheld - appeal allowed in part. X X X X Extracts X X X X X X X X Extracts X X X X ..... st. 5. Shri Himanshu Khemka, learned counsel assisted by Shri Manoj Jain, learned chartered accountant submitted that service tax is not leviable on the amount collected by the appellant towards consultancy services and in support of this contention learned counsel placed reliance upon the decision of this Tribunal in Madhya Pradesh Kshetra Poorva Vidyut Vitran Co. Ltd. vs Principal Commissioner [Service Tax Appeal No. 51649 of 2019 decided on 14.01.2021]. Learned counsel also submitted that service tax could also not have been levied on the appellant on the amount collected by the appellant towards liquidated damages or penalties and in support of this contention, reliance was placed upon a Division Bench decision of the Tribunal in M/s M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant towards consultancy charges. This issue was examined by a Division Bench of the Tribunal in Madhya Pradesh Poorva Kshetra Vidyut Vitaran Company Ltd. decided on 14.01.2021 and after placing reliance upon the decision of the Gujarat High Court in Torrent Power Ltd. vs Union of India [Special Civil Application No. 5443 of 2018 decided on December 19, 2018], the Tribunal observed as follows:- 28. It is clear from the aforesaid judgment of the Gujarat High Court that the activities that are related/ancillary to transmission and distribution of electricity would be exempt from payment of service tax since transmission and distribution of electricity is exempted. It is also clear from aforesaid decision that all services related to trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ineries rented to the vendors and contractors without giving legal right of possession and effective control. Learned counsel for the appellant has not been able to controvert the findings recorded by the Commissioner in the impugned order. The confirmation of the demand under this head is, therefore, justified. CONCLUSION 14. In the result the confirmation of demand on the amount collected on account of consultancy charges or liquidated damages cannot be sustained and is set aside. However, the confirmation of demand under hire charges is upheld. The order dated 01.03.2019 passed by the Commissioner is accordingly modified to the said extent and the appeal is allowed to the extent indicated above. (Order pronounced in the Open Court on_ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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