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TMI Blog2025 (1) TMI 938X X X X Extracts X X X X X X X X Extracts X X X X ..... MR. P. ANJANI KUMAR, MEMBER (TECHNICAL) Ms. Krati Singh, Shri Aman Singh and Ms. Jashanpreet Kaur, Advocates for the Appellant Shri Anurag Kumar, Authorized Representative for the Respondent ORDER The appellant herein are into the construction and erection of transmission lines for electricity distribution authorities. Revenue has issued show cause notices to the appellant holding that they are not eligible for concessional rate of duty under the composition under Works Contract Service; show cause notices dated 23.11.2010 and 21.05.2014 were issued and adjudicated vide orders dated 23.09.2013 and 30.11.2016 and confirming the proposals made in the show cause notices. Hence, these appeals. 2. Ms. Krati Singh, Learned counsel for the appellant submits that though show cause notices allege that the appellants are not for eligible to avail the composition scheme Works Contract Scheme, the impugned orders seek to deny the benefit for the reason that erection/construction of the electricity distribution lines do not fall under the ambit of service in relation to transfer of electricity. Learned counsel for the appellant further submits that the issue is no longer res integra having been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctricity; 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-S.T. dated 27.02.2010 Exemption to services provided for transmission of electricity 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 other person for transmission of electricity, from the whole of service tax leviable thereon under section 66 of the said Finance Act. 13. To appreciate the submissions it would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ospectively and therefore no service tax is payable on such services. The further relied upon the judgment in the case of Praveen Electrical Works vs. CCE, Belgaum [2011 (22) STR 17 (Tri Bang)]. xxxxxxxxxxx D.3 That further, in terms of Notification No. 11/2010- ST dated 27.02.2010 unconditional exemption is granted to services provided for transmission of electricity for the period from 27.02.2010 onwards. The notice further mentioned that CBEC s Circular No. 131/13/2010- S.T., dated 7-12-2010 further clarified that renting of the meter qualifies for exemption under Notification No. 11/2010-ST. Thus, the intention of the government has always been to exempt all the services which are in relation to transmission of electricity. The activity of supply and construction of transmission lines is indispensable for providing the service of transmission of electricity and therefore is integral to the activity of transmission of electricity and is therefore exempt. D.4 The Noticee further submitted that the exemption under Notification No. 45/2010-ST dated 20.07.2010 and Notification No. 11/2010-ST dated 27.02.2010 is an omnibus exemption as the said Notification does not exempt any partic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0-ST dated 27-2-2010, Notification No. 32/2010-ST dated 22-6-2010 and Notification No. 45/ 2010-ST dated 20-7-2010. xxxxxxxxxxxx 34. It is observed that in order to provide the taxable services of Transmission/Distribution of electricity, a number of other taxable services are used by the EDAs. These taxable services, like Works Contract Services in the present case, are Input services for the EDAs which can be used by them to provide the Output services of Transmission/Distribution of electricity and the EDAs can avail CENVAT credit of Service Tax paid on these Input services, if otherwise admissible. These Input services, which are liable to Service Tax in the hands of other service providers (like KEC, in the present case), would not become exempted under the referred Notifications by virtue of the phrase relating to used in these Notifications because this phrase expands the scope of the taxable service of Transmission/Distribution of electricity but does not completely change its nature and character by bringing entirely different and distinct taxable services within its ambit. Further, the phrase relating to used in these Notifications cannot be interpreted to mean used to pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... placing reliance upon the decision of the Tribunal in Kedar construction and Noida Power Company Ltd. conclude that since the expression relating to is very wide in its amplitude and scope, all taxable services rendered in relation to transmission/distribution of electricity would be eligible of the benefit of exemption under notification dated 20.07.2010 for the period upto 27.02.2010. 20. It would, therefore, be useful to reproduce the portion of the decision of the Tribunal in Kedar construction that was relied upon and it is as follows: 5. We notice that out of the total demand confirmed of Rs. 2,04,14,368/-, bulk of the demand of Rs. 1,90,47,124/- pertains to Commercial or Industrial Construction service rendered to Maharashtra State Electricity Transmission Co. Ltd., Maharashtra State Electricity Distribution Co. Ltd., Sunil Hi-Tech, Suraj Constructions, V.B. Bhike, etc. for transmission of electricity. Vide Notification 45/2010-S.T., all taxable services rendered in relation to transmission and distribution of electricity have been exempted from the purview of Service Tax. The expression relating to is very wide in its amplitude and scope as held by the Hon ble Apex Court i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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