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TMI Blog2024 (2) TMI 1401X X X X Extracts X X X X X X X X Extracts X X X X ..... nce placed in Torrent Power Limited [ 2019 (1) TMI 1092 - GUJARAT HIGH COURT ] where it was held that ' The services provided by the petitioner are in the nature of composite supply and therefore, in view of the provisions of clause (a) of Section 8 of the CGST Act, the tax liability thereof has to be determined by treating such composite same as a supply of the principal supply of transmission and distribution of electricity. Consequently, if the principal supply of transmission and distribution of electricity is exempt from levy of service tax, the tax liability of the related services shall be determined accordingly.' In the case of M/S HYDERABAD POWER INSTALLATIONS PVT LTD. VERSUS CC, CE ST, HYDERABAD-II [ 2016 (7) TMI 599 - CESTAT HYDERABAD] it was held that 'the demand raised under ECIS is unsustainable and requires to be set aside.' From the above judgments it can be seen that the entire period in the present appeal i.e. related to Notification No. 45/2010-ST, 11/2010-ST and also for the period when negative list under Section 66D was in force, it was held that service for transmission of electricity is not leviable to service tax. Therefore, the issue is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transmission of electricity. For the purpose of said erection of Bays, Sub-station and Transmission Lines, the appellant receives work contract service from EPC Contractors. The appellant was served two show cause notices dated 20.10.2014 and 10.04.2015 for the period 2009-10 to 2012-13 and 2013-14 respectively demanding service tax on various charges recovered by the appellant from the consumers for the erection of Bays, Sub-stations and Transmission Lines under the category of Erection, Commissioning and Installation Service under Section 65 (zzd) of the Finance Act, 1994 and further service tax to the extent of 50% under reverse charge on work contract service received by the appellant. Further, show cause notice dated 20.10.2014 also demand interest on Cenvat credit which was never utilised by the appellant. After considering the reply submitted by the appellant, learned Commissioner by two orders-in-original, dated 20.10.2016 confirmed the said show cause notices against which the present two appeals are preferred by the appellant. 2. Shri JC Patel, learned Counsel along with Shri Rahul Gajera, advocate appearing on behalf of the appellant submits that all the services provide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tilisation thereof, therefore no interest could have been demanded. He submits that the demand of interest is also covered in longer period in view of the following judgments, the limitation provided under Section 73(1) is also applicable for demand of interest therefore, the demand of interest is also time-barred. He relied on the following judgments:- (a) CCE Bill Forge P. Ltd 2012 (279) ELT 209 (Kar) (b) Aban Offshore Ltd v CST 2023 (70) GSTL 471 (c) Commissioner v TVS Whirlpool Ltd-2000 (119) ELT A177 (d) Commissioner v Emco Ltd-2015 (325) ELT A 104 (Bom) (e) Kwality Ice Cream Company v UOL-2012 (27) STR 8 (Del). 4. He submits that in the present case since the taking of the credit and its reversal clearly reflected in the record, suppression of facts or willful misstatement with an intention to evade payment of duty cannot be alleged and hence longer period of limitation is not applicable and therefore, demand of interest must fall. 5. Shri Tara Prakash, learned Deputy Commissioner (AR) appearing for the Revenue reiterates the findings of the impugned order. 6. On careful consideration of the submissions made by both the sides and perusal of record, we find that on the issue w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplication fee for releasing connection of electricity; (ii) rental charges against metering equipment; (iii) testing fee for meters/transformers, capacitors etc; (iv) labour charges from customers for shifting of meters or shifting of service line; (v) charges for duplicate bill provided by DISCOMS to consumers are taxable. Thus, it is crystal clear, that the impugned summons, except to the extent the same relates to services provided to MEGA, has been issued on the basis of the impugned circular. It appears that the respondents for the entire duration of the negative list regime seem to have proceeded on the basis that these services stand included in the transmission and distribution of electricity and, therefore, have not raised any demand till date. However, now, taking shelter behind the impugned circular, the impugned summons has been issued seeking documents/details in connection with services provided right from financial year 2012- 13 to financial year 2017-18. In the opinion of this Court, in view of the fact that the impugned summons is based upon the clarificatory circular, which is subject matter of challenge in the present petition, the contention that the petition c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se, namely, the negative list regime is concerned, with effect from 1-7-2012, Section 65B of the Finance Act, 1994 came to be amended and service tax became leviable on all services, other than those services specified in the negative list. Admittedly, transmission and distribution of electricity by an electricity transmission or distribution utility, finds place in the negative list and, is therefore, not exigible to service tax. 12. The first question that arises for consideration is whether services relating to transmission and distribution of electricity fall within the ambit of clause (k) of Section 66D of the Finance Act and, are therefore, exempt. In this regard, it may be noted that prior to the coming into force of the negative list regime, goods and services were exempted by virtue of notifications issued in exercise of powers under sub-section (1) of Section 93 of the Finance Act. By virtue of Notification No. 11/2010, dated 27-2-2010, the Central Government exempted transmission of electricity from the whole of service tax leviable thereon under Section 66 of the Finance Act; and by virtue of Notification No. 32/2010-Service Tax, dated 22-6-2010, distribution of electri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tribution of electricity. From the affidavits-in-reply filed on behalf of the respondents, there is nothing to show as to how the very services, which stood included within the ambit of transmission and distribution of electricity now stand excluded. The sole refrain of the respondents is that in view of the fact that the exemption notification stands rescinded, the clarification also stands rescinded. What is lost sight of is that the clarification was only in respect of electric meters, whereas all related services were included within the ambit of transmission and distribution of electricity and given the benefit of the exemption notifications. Moreover, the clarificatory circular merely clarifies the stand of the Government as regards what would stand included within the meaning of transmission and distribution services namely, essential activities having direct and close nexus with the transmission and distribution of electricity. The respondents having themselves considered the services in question as being covered by the exemption for transmission and distribution of electricity as such services were essential activities having a direct and close nexus cannot be now permitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices. - (1) Unless otherwise specified, reference to a service (herein referred to as main service) shall not include reference to a service which is used for providing main service. Illustration. - The services by the Reserve Bank of India, being the main service within the meaning of clause (b) of Section 66-D, does not include any agency service provided or agreed to be provided by any bank to the Reserved Bank of India. Such agency service, being input service, used by the Reserve Bank of India for providing to main service, for which the consideration by way of fee or commission or any other amount is received by the agent bank, does not get excluded from the levy of service tax by virtue of inclusion of the main service in clause (b) of the negative list in Section 66-D and hence, such service is leviable to service tax. (2) Where a service is capable of differential treatment for any purpose based on its description, the most specific description shall be preferred over a more general description. (3) Subject to the provisions of sub-section (2), the taxability of a bundled service shall be determined in the following manner, namely :- (a) if various elements of such serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an element of provision of one service is combined with an element or elements of provision of any other service or services. 20. The facts of this case are required to be examined in the light of the above statutory provisions. In this case, we are concerned with transmission and distribution of electricity being the main services and application fee for releasing the connection for electricity; rental charges against metering equipment; testing fee for meters/transformers, capacitors etc.; labour charges from customers for shifting of meters or shifting of service lines; charges for duplicate bills provided by DISCOMS to consumers being related services. The question is whether an element of provision of these services is combined with an element or elements of provision of the main service of transmission and distribution of electricity. As noticed earlier, the respondents have themselves treated such related/ancillary services as part of the main service of transmission and distribution of electricity for the pre-negative list regime. Apart, therefrom, considering this issue independently, reference may be made to certain provisions of the Electricity Act. Sections 43 and 45 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ublicity for such charges and prices. (3) The charges for electricity supplied by a distribution licensee may include - (a) a fixed charge in addition to the charge for the actual electricity supplied; (b) a rent or other charges in respect of any electric meter or electrical plant provided by the distribution licensee. (4) Subject to the provisions of section 62, in fixing charges under this section a distribution licensee shall not show undue preference to any person or class of persons or discrimination against any person or class of persons. (5) The charges fixed by the distribution licensee shall be in accordance with the provisions of this Act and the regulations made in this behalf by the concerned State Commission. 21. On a plain reading of Section 43 of the Electricity Act, it is evident that a licensee, on an application by the owner or occupier of any premises, is required to supply electricity to such premises. For the purpose of supplying electricity, it is the duty of the distribution licensee to provide electric plant or electric line for giving electric supply to the premises of the consumer. In case the distribution licensee fails to supply the electricity, it is l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any premises. However, insofar as installation of electricity meter and hire charges collected in respect of electricity meters are concerned, by the circular dated 7th December, 2010, the Government of India has clarified that supply of electricity meters for hire to the consumers is an essential activity having direct and close nexus with transmission and distribution of electricity and therefore, is covered by the exemption for transmission and distribution of electricity extended under the relevant notifications. Evidently therefore, all the services related to transmission and distribution of electricity are naturally bundled in the ordinary course of business of the petitioner and are required to be treated as provision of the single service of transmission and distribution of electricity which gives the bundle its essential character. 23. Besides, a perusal of the GERC Regulations indicates that the services which are sought to be taxed now are the services, which the petitioner is required to mandatorily provide at the rate prescribed by GERC, a statutory authority constituted under the provisions of the Electricity Act. In the opinion of this Court, all these services are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices in question would fall within the ambit of bundled services as contemplated under sub-section (3) of Section 66F of the Finance Act, and would have to be treated in the same manner as the service which gives the bundle its essential character, namely, transmission and distribution of electricity and, would therefore, be exempt from payment of service tax. 26. Insofar as the phase relating to the CGST/SGST Acts regime is concerned, Section 8 of the CGST Act makes provision for tax liability on composite and mixed supplies and postulates that the tax liability on a composite or a mixed supply shall be determined in the manner provided in clauses (a) and (b) thereunder. Clause (a) says that a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply; and clause (b) says that a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax. To fall within the ambit of clause (a) the supply has to be a composite one. Composite supply has been defined under Section 2(30) of the CGST Act to mean a supply made by a taxable perso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een contended that the services rendered by them are in the nature of composite supply, on behalf of the respondents it has been contended that the same are in the nature of mixed supply within the meaning of such expression as contemplated in Section 2(74) of the CGST Act and would, therefore, fall within the ambit of clause (b) of Section 8 of that Act which provides that a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax. Mixed supply has been defined under Section 2(74) of the CGST Act to mean two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply. The illustration thereunder reads thus : Illustration. - A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately; The above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of India would stand included in another service. Such interpretation would not change merely because such exemption is now granted under some other provision. - The meaning of transmission and distribution of electricity does not change either for the negative list regime or the GST regime. Accordingly, the services which stood included within the ambit of transmission and distribution of electricity during the pre-negative list regime cannot now be sought be excluded by merely issuing a clarificatory circular, that too, with retrospective effect. By the clarificatory circular, the respondents seek to give a different interpretation of the very same services as against the clarification issued for the pre-negative list regime. - From the very manner in which the respondents have treated the services related to transmission and distribution of electricity during the pre-negative list regime, the related/ancillary services would stand covered by the exemption granted to transmission and distribution of electricity by virtue of inclusion of such services in the list of negative services under Section 66D(k) of the Finance Act as well as by virtue of exemption notification issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Finance Act. If the services are naturally bundled in the ordinary course of business, the bundle of services shall be treated as provision of the single service which gives the bundle its essential character and where the services are not naturally bundled in the ordinary course of business, the same is required to be treated as provision of the single service which results in highest liability of service tax. Accordingly, where the services are naturally bundled in the ordinary course of business and the single service which gives such bundle its essential character is exempt from tax, the entire bundle will have to be treated as provision of such single service. - In respect of the period falling under the negative list regime, the services in question would fall within the ambit of bundled services as contemplated under subsection (3) of Section 66F of the Act, and would have to be treated in the same manner as the service which gives the bundle its essential character, namely, transmission and distribution of electricity and, would therefore, be exempt from payment of service tax. - The services provided by the petitioner are in the nature of composite supply and therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Hyderabad Power Installations (supra), the following view has been taken by the Tribunal:- The appellant is registered with the Service Tax Department. On verification of records it emerged that the appellant had entered into contract agreements with Power Distribution/Transmission Companies which involved supply of material, erection and installation of sub-stations, related lines, installation of transformers and other electrical equipments etc. They also provided their land under lease agreement to a business organisation and received payment to that effect. The department entertained the view that the appellant has provided taxable services under the category of Erection Commissioning or Installation Services (ECIS) and Renting of Immovable Property Services, however, have neither disclosed these facts to the Department nor discharged appropriate service tax liability thereon. 2. In adjudication proceedings, service tax demand of Rs. 60,68,455/- was confirmed on services rendered under the category of ECI Services. Demand of ₹ 4,91,145/- was confirmed on services rendered under the category of Renting of Immovable Property. Hence this appeal. 3. The learned Counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 010-S.T., dated 22-6-2010. The relevant portions of these notifications are reproduced below : In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided to any person, by any other person for transmission of electricity, from the whole of service tax leviable thereon under section 66 of the said Finance Act. In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said Finance Act ), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided to any person, by a distribution licencee, a distribution franchisee, or any other person by whatever name called, authorized to distribute power under the Electricity Act, 2003 (36 of 2003), for distribution of electricity, from the whole of service tax leviable thereon under section 66 of the said Finance Act. 7. The aforesaid dispute resulted in a n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or all services relating to transmission of electricity, and during the period up to 21-6-2010 for all taxable services relating to distribution of electricity. 10. We find that the issue of eligibility of No. 45/2010-S.T. in identical situation is no longer res integra and has been decided in favour of service providers such as the appellant, in a number of cases. In fact relying upon such case laws, in the appellant s own appeal, this Bench has set aside the aforesaid demand made against them by denial of Notification No. 45/2010-S.T. vide Final Order No. A/30489/2016, dated 23-5-2016. The relevant portion of the order is reproduced below : The appellant is registered with the Service Tax Department. On verification of records it emerged that the appellant had entered into contract agreements with Power Distribution/Transmission Companies which involved supply of material, erection and installation of sub-stations, related lines, installation of transformers and other electrical equipments etc. They also provided their land under lease agreement to a business organisation and received payment to that effect. The department entertained the view that the appellant has provided taxa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if any. 11. In the circumstances, we therefore find that the main issue per se was in agitation/sub judice in respect of this appellant at least till the date of Tribunal s aforecited Final Order viz., 23-5-2016. In the normal course, pursuant to issue of a notification under Section 11C of Central Excise Act, 1944 Section 83 of Finance Act, 1994, any refund arising on account of such Section 11C notification will have to be necessarily claimed before the expiry of six months from the date of issue of the said notification [Proviso to sub-section (2) of Sec. 11C]. This is a deviation from the normal period of one year provided for in claim of refund in Sec. 11B ibid. However, as per clause (ec) of Explanation (B) of sub-section (5) of Section 11B ibid read with sub-section (1) thereof, in case where a duty becomes refundable as a consequence of judgment, decree, order or direction of appellate authority, Appellate Tribunal or any Court, the refund claim can be made before the expiry of one year from the date of such judgment, decree or direction. The statutory interpretation in such a situation, as distilled from settled law, is that when there are in an enactment two provisions w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant. We therefore essentially hold that the appellant is eligible for refund. The rejection of refund being unsustainable, the same is set aside and the appeal is allowed with consequential reliefs, if any. (d) In the case of Madhya Pradesh Power Transmission Company Limited (supra), the following order was passed:- 7. The submissions advanced by Learned Counsel for the appellant and the Learned Authorized Representative appearing for the Department have been considered 8. Each of the heads under which service tax has been confirmed will be dealt with separately Consultancy services: 9. The appellant provides consultancy services to contractors and power DISCOMS while laying the power of electricity transmission lines, erection of electricity poles and construction of electricity sub-stations. The appellant collects the amount for consultation services which are incidental to the transmission activities as the appellant has the expertise in power transmission. If the poles, lines or sub-stations are not erected or constructed as per the specifications, it will not be possible to transmit electricity. 10. The issue that arises for consideration is as to whether service ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for use of equipments and machineries 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 1- 3-2019 passed by the Commissioner is accordingly modified to the said extent and the appeal is allowed to the extent indicated above. (e) Madhya Pradesh Poorva Kshetra Vidyut Vitran Co Ltd (supra), CESTAT New Delhi held asunder:- 17. The issue that arises for consideration in this appeal is whether the appellant is providing taxable service by way of collecting amount under the following headings: Late payment Surcharge Taxable under section 66E(e) of the Finance Act as a declared service Meter Rent Taxable under section 66E(f) of the Finance Act as a declared service Supervision Charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the same is the consideration received by the appellant for transfer of goods by way of hiring. The Principal Commissioner has also confirmed the demand of service tax on supervision charges collected from electricity consumers by holding that the same is taxable as it is not covered under any exemption. 23. According to the appellant the amount has been collected in terms of the 2009 Regulations and are the services bundled in the ordinary course of business for providing electricity. They are, therefore, required to be treated as a single service for providing services for transmission and distribution of electricity, which service is exempted under the negative list under section 66D(k) of the Finance Act. 24. In this connection it needs to be noted that prior to introduction of the negative list regime for service tax under the Finance Act, there was no specific clause in the charging provisions of the Finance Act requiring payment of service tax on the amount collected from the consumers in relation to transmission and distribution of electricity. The Government of India issued a Notification dated February 27, 2010 exempting taxable service provided to any person by any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spute that the related/ancillary services to transmission and distribution of electricity are exempt from payment of service tax. The dispute, therefore, relates to the period of the negative list regime and the CGST/SGST regime. 11. Insofar as the second phase, namely, the negative list regime is concerned, with effect from 1.7.2012, section 65B of the Finance Act, 1994 came to be amended and service tax became leviable on all services, other than those services specified in the negative list. Admittedly, transmission and distribution of electricity by an electricity transmission or distribution utility, finds place in the negative list and, is therefore, not exigible to service tax. 12. The first question that arises for consideration is whether services relating to transmission and distribution of electricity fall within the ambit of clause (k) of section 66D of the Finance Act and, are therefore, exempt. In this regard, it may be noted that prior to the coming into force of the negative list regime, goods and services were exempted by virtue of notifications issued in exercise of powers under sub-section (1) of section 93 of the Finance Act. By virtue of Notification No. 11/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dents considered the services related to transmission and distribution of electricity as exempt under the exemption notifications, for the negative list regime and the GST regime, they seek to exclude such services from the ambit of transmission and distribution of electricity. From the affidavits-in-reply filed on behalf of the respondents, there is nothing to show as to how the very services, which stood included within the ambit of transmission and distribution of electricity now stand excluded. The sole refrain of the respondents is that in view of the fact that the exemption notification stands rescinded, the clarification also stands rescinded. What is lost sight of is that the clarification was only in respect of electric meters, whereas all related services were included within the ambit of transmission and distribution of electricity and given the benefit of the exemption notifications. Moreover, the clarificatory circular merely clarifies the stand of the Government as regards what would stand included within the meaning of transmission and distribution services namely, essential activities having direct and close nexus with the transmission and distribution of electricit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and application fee for releasing the connection for electricity; rental charges against metering equipment; testing fee for meters/transformers, capacitors etc.; labour charges from customers for shifting of meters or shifting of service lines; charges for duplicate bills provided by DISCOMS to consumers being related services. The question is whether an element of provision of these services is combined with an element or elements of provision of the main service of transmission and distribution of electricity. As noticed earlier, the respondents have themselves treated such related/ancillary services as part of the main service of transmission and distribution of electricity for the pre-negative list regime. Apart, therefrom, considering this issue independently, reference may be made to certain provisions of the Electricity Act. Sections 43 and 45 of the Electricity Act. 22. Thus, any line which is used for carrying electricity for any purpose as well as any apparatus connected to any such line for the purpose of carrying electricity is mandatorily required to be provided to the consumer by the licensee. Moreover, any plant, equipment, apparatus or appliance or any part thereo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty, which is an essential activity having direct and close nexus with transmission and distribution of electricity would be covered by the exemption for transmission and distribution of electricity extended under the relevant notifications. Therefore, the taxability of the related/ancillary services are required to be given same treatment as is given to the single service, which gives such bundle its essential character, namely, transmission and distribution of electricity. 25. Thus, insofar as the phase relating to the negative list regime is concerned, the services in question would fall within the ambit of bundled services as contemplated under subsection (3) of section 66F of the Finance Act, and would have to be treated in the same manner as the service which gives the bundle its essential character, namely, transmission and distribution of electricity and, would therefore, be exempt from payment of service tax. (emphasis supplied) 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 e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the pre-negative list period of the service tax levy exempting all activities provided for transmission and distribution of electricity: Notification What the Notification exempts 11-ST dated 27 February 2010 32-ST dated 22 June 2010 Exempts the taxable service provided to any person, by any other person for transmission of electricity, from the whole of service tax Exempts the taxable service provided to any person, by a distribution licencee, a distribution franchisee, or any other person by whatever name called, authorized to distribute power under the Electricity Act, 2003 (36 of 2003), for distribution of electricity. 45-ST dated 20 July 2010 a practice was generally prevalent regarding levy of service tax (including non-levy thereof) on all taxable services relating to transmission and distribution of electricity provided by a person and that all such services were liable to service tax which were not being levied according to the said practice during the period up to 26th day of February, 2010 for all taxable services relating to transmission of electricity, and the period up to 21st day of June, 2010 for all taxable services relating to distribution of electricity; the Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... understood to encompass the entire process necessary in transmitting and distributing electricity to their customers. In its judgment in the case of State of Haryana v. Dalmia Dadri Cement Ltd [AIR 1988 S.C. 342], pertaining to the Sales Tax Act it was held by the Hon ble Apex Court that from a plain reading of the relevant clause it is clear that expression for use means intended for use. Thus the word for appearing in the notifications are to be construed as expressions of width and amplitude which cover within its scope any activity which is rendered in connection with the main activity of transmission and distribution of electricity. While examining a similar phrase the Hon'ble Bombay High Court in the case of ONGC v. CCE, Raigad [2013 (32) S.T.R. 31 (Bom.)] has held that - where the legislature or its delegate uses the expression in or in relation to , its object and purpose is to widen the scope and purview of its entitlement . A similar treatment has to be given to the word for in the context of the notifications. It would not suffice to examine the form of the activity sought to be classified in isolation. The guiding factor would be to examine it in conjunction with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manchal Vidyut Vitran Nigam, Purvanchal Vidyut Vitran Nigam and Shri Ganesh Enterprises cited supra. Shri Ganesh Enterprises v CCE 2014 (2) TMI 436 CESTAT BANGALORE Among the taxable services provided were 'management, Maintenance or repair service' involving manning and maintenance of sub-stations; 'erection, commissioning or installation service' for erection of electrical lines of different capacities and transport of material from one location to another including - erection of sub-stations and allied services; transport of goods by road for transport of failed/repaired transformers and other material of the distribution companies; rent-a-cab operator service, provided to the distribution companies for transport of their personnel; Business Auxiliary Service by establishing' Customer Service Centres on behalf of distribution companies; and 'manpower recruitment and supply agency service', by supply of semi- skilled labour for attending to maintenance works in the sub-divisions of the distribution companies. .. by Notification No. 45/2010-ST dt. 20/07/2010, in exercise of powers conferred by Section 11 C of the Central Excise Act, 1944 read with Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s Maharashtra State Electricity Distribution Company Ltd. during the period 01.4.2007 to 31.3.2012. 5. We find that by virtue of Notification No. 45/2010-ST dated 20.7.2010, transmission and distribution of electricity for the period upto February, 2010 has been retrospectively held to be not leviable to Service Tax in exercise of powers conferred by Section 11C of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994. Subsequently, the transmission of electricity has been held exempted vide Notification No. 11/2010- ST dated 27.2.2010 and distribution of electricity under Notification No. 32/2010- ST dated 22.6.2010. CC.,CEX ST Hydrabad III Vs Sri Rajayalakshmi Cement Products 2017 (52) STR 309 (Tri. Hyd.) Erection, Commissioning or Installation Services (ECIS) - Liability to tax - In terms of Notification No. 45/2010-S.T., all taxable services relating to transmission and distribution of electricity provided by any service provider not taxable for period up to 26-2-2010 and up to 21-6-2010 respectively for services relating to transmission and distribution of electricity - Dropping of proceedings by adjudicating authority relying on C.B.E. C. Circular No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s sought to be taxed by the department. The description of the activity as given by the appellant is mentioned below. i) Registration / application / name transfer from Wind Energy Generators (WEG): [ Business Auxiliary Service ], Registration fee, name transfer fee and Installation tie up fee are fixed as statutory fee for grant of permission for setting up of a wind mill. ii) Preparation of field feasibility reports etc., to establish wind farms. [ Consultant Engineer Service ]. The field feasibility report is prepared for the purpose of installation of wind electric generator. It is a mandatory/ statutory document and helps the appellant to monitor the role of the applicant in its capacity as an electric transmission and distribution utility. Without assessing feasibility and hereafter approving the grid tie up the appellant cannot allow the electricity generated by the WEG to enter the grid. iii) Non-employees for training/workshop. [ Commercial Coaching and Training ]. The training given to its own employees is without collecting fees. Training for others is done by collecting a nominal fee for meeting the cost of training. The training is given as a part of human resource dev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stallation Service is not sustainable. 7. As regards the issue that the Cenvat credit reversed by the appellant, whether they are liable for interest thereon or otherwise, we find that there is no dispute that the demand of interest was also raised by invoking extended period. As per facts and circumstances, there is no suppression of facts on the part of the appellant therefore, even for the demand of interest, the longer period cannot be invoked. The Hon ble Supreme Court in the case of Commissioner vs. TVS Whirlpool Limited (supra) held as under:- The Supreme Court Bench comprising Hon ble Mr. Justice S.P. Bharucha, Hon ble Mr. Justice V.N. Khare and Hon ble Mr. Justice D.P. Mohapatra on 7-10-1999 dismissed the Civil Appeal No. 8930 of 1997 with C.A. Nos. 7299-7309 of 1997 filed by Commissioner of Customs, Madras. The Civil Appeal Nos. 7299-7309 of 1997 was filed against the CEGAT Order No. 612/96-SRB, dated 12-4-1996 and reported in 1996 (86) E.L.T. 144 (Tribunal). While dismissing the appeal the Supreme Court passed the following order :- It is only reasonable that the period of limitation that applies to a claim for the principal amount should also apply to the claim for inte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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