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TMI Blog2024 (9) TMI 406X X X X Extracts X X X X X X X X Extracts X X X X ..... o transmission of electricity. Therefore, in the present case the works contract service for the construction of building and other work is in relation to transmission of electricity, therefore, the same is exempted under the aforesaid notifications and not liable for service tax. This issue has been considered by the Tribunal in various judgments. In the case of Kedar Construction [ 2014 (11) TMI 336 - CESTAT MUMBAI ] this tribunal held that ' the confirmation of service tax demand in respect of the construction, maintenance or repair activities undertaken by the appellant so far as it relates to the transmission/distribution of electricity cannot be sustained in law.' Thus, it is clear that the appellant s service of works contract is covered by the exemption Notification No. 45/2010 ST dated 20.07.2010 and Notification No. 11/2010-ST dated 27.02.2010. The impugned order is set aside - appeal allowed. - HON'BLE MEMBER ( JUDICIAL ) , MR. RAMESH NAIR And HON'BLE MEMBER ( TECHNICAL ) , MR. C L MAHAR Shri Rahul Gajera , Advocate for the Appellant Shri Anoop Kumar Mudvel , Superintendent ( AR ) for the Respondent ORDER RAMESH NAIR The following issues involved in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to any other person (hereinafter called the service receiver ), and that all such services were liable to service tax under the said Finance Act, 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; Now, therefore, in exercise of the powers conferred by section 11C of the Central Excise Act, 1944 (1 of 1944), read with section 83 of the said Finance Act, the Central Government hereby directs that the service tax payable on said taxable services relating to transmission and distribution of electricity provided by the service provider to the service receiver, which was not being levied in accordance with the said practice, shall not be required to be paid in respect of the said taxable services relating to transmission and distribution of electricity during the aforesaid period. Notification No. 11/ 2010-Service Tax G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3), it covers a very wide gamut of activities including sub-station and equipments. Therefore, the various activities undertaken by the appellant, though classifiable under Commercial or Industrial Construction prior to 01.06.2007 or under works contract service on or after 01.06.2007, would be eligible for the benefit of exemption as held by this Tribunal in the case of Noida Power Co. Ltd., Pashchimanchal Vidyut Vitran Nigam, Purvanchal Vidyut Vitran Nigam and Shri Ganesh Enterprises cited supra. Therefore, the confirmation of service tax demand in respect of the construction, maintenance or repair activities undertaken by the appellant so far as it relates to the transmission/distribution of electricity cannot be sustained in law. As regards the other demands which has been confirmed in respect of construction of transformer station for the sugar factory or GTA service etc. the appellant is not disputing the tax liability and therefore in respect of the other activities of the appellant which are not related to either transmission or distribution of electricity, the demands confirmed are upheld along with interest. 7. In the facts and circumstances of the case, since the issue r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... une, 2010 for all taxable services relating to distribution of electricity; Now, therefore, in exercise of the powers conferred by section 11C of the Central Excise Act, 1944 (1 of 1944), read with section 83 of the said Finance Act, the Central Government hereby directs that the service tax payable on said taxable services relating to transmission and distribution of electricity provided by the service provider to the service receiver, which was not being levied in accordance with the said practice, shall not be required to be paid in respect of the said taxable services relating to transmission and distribution of electricity during the aforesaid period. [Notification No. 45/2010-S.T., dated 20-7-2010] From the above exemption notification, it is clear that all the taxable service provided by an assessee relating to transmission and distribution of electricity are exempted for the period up to 26th February, 2010. Since in the present case, the period involved is prior to 26th February, 2010 entire period is covered under exemption therefore, the demand on the services in question except the demand on supply of tangible goods are exempted under Notification No.45/2010-ST. This is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not related to either transmission or distribution of electricity, the demands confirmed are upheld along with interest. Noida Power Company Ltd.- 2014 (33) S.T.R. 383 (Tri.Del.) 3. In issuing Exemption Notification dated 22-6-2010 read with the Notification No. 45/2010-S.T., dated 20-7-2010, the Central Government signalled the clear policy choice that levy of Service Tax on activities in relation to the distribution of electrical energy by a distribution agency is exempt from levy of Service Tax. 4. The analysis of the Adjudication Authority in relation to the assessee s claim for immunity to Service Tax is predicated on the Notification dated 20-7-2010 vide paragraph 5.1 of the order-in-original under title Discussion and Findings . The Adjudicating Authority held that the notifications do not exempt the activity/service of installation of various equipments at the consumers premises, as this service is different from and in addition to service of distribution of electricity; that equipment installed by the assessee is not in lieu of hire charges; that the infrastructure (established by the assessee) is used to supply electricity to various consumers and the consumers do not hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gam, the impugned adjudication order is unsustainable and is accordingly quashed. This appeal by the assessee is allowed, but in the circumstances without costs. As the appeal is allowed the stay petition stands disposed of. U.P. Rajkiya Nirmaan Nigam Ltd.- 2016 (41) S.T.R. 967 (Tri.Del.) 4. We have considered the contentions of the appellant. Notification No. 45/2010-S.T., dated 20-7-2010 reads as under : - Electricity - Exemption to all taxable services relating to transmission of electricity till 26-2-2010 and distribution of electricity till 21-6-2010 Whereas, the Central Government is satisfied that a practice was generally prevalent regarding levy of service tax (including non-levy thereof), under Section 66 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act ), on all taxable services relating to transmission and distribution of electricity provided by a person (hereinafter called the service provider ) to any other person (hereinafter called the service receiver ), and that all such services were liable to service tax under the said Finance Act, which were not being levied according to the said practice during the period up to 26th day of Febru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter hearing the learned AR and going through the records, it is seen that the original authority had not considered the liability of Service Tax on the ground that appellant had deposited the entire amount of Service Tax and produced the challan. Before the learned Commissioner (Appeals), appellant had claimed the benefit of notification. However the learned Commissioner has held that services provided by the appellant are provided prior to distribution and transmission of electricity and therefore the appellant is not eligible. However based on which the Commissioner has come to this conclusion is not available. There is no contrary finding that manpower supply service has not been provided to a transmission and distribution company. There is no detail available as to how the service provided by the appellants has to be treated as the one provided prior to transmission and distribution of electricity. Notification No. 45/2010 exempts all the services rendered in relation to transmission and distribution of electricity and there is no distinction made prior to commencement of transmission or distribution subsequently. It is quite clear that in this case services are provided to M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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