Service tax on electricity wheeling and distribution set aside where the relevant period was covered by a protective notification.

Service tax demand on electricity wheeling or distribution treated as Business Auxiliary Service was held unsustainable because the relevant period was covered by Notification No. 45/2010-ST dated 20 July 2010. The dispute was also stated to be covered by an earlier identical decision of the same Bench, and that notification protected the activity for the period in question. On that basis, the demand could not be sustained and was set aside.

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Issues: Whether the demand of service tax on electricity wheeling or distribution under Business Auxiliary Service was liable to be set aside in view of Notification No. 45/2010-ST dated 20/7/2010.

Analysis: The demand was confirmed for electricity wheeling or distribution under the category of Business Auxiliary Service. The dispute was already covered by an earlier identical decision of the same Bench, and the relevant period fell within the scope of the notification issued by the Government of India. In view of that notification and the covered period, the impugned demand could not be sustained.

Conclusion: The demand was not sustainable and was set aside.

Final Conclusion: The assessee succeeded and the appeal was allowed.

Ratio Decidendi: Where the relevant period is covered by a notification granting protection or relief, a service tax demand on the same activity cannot be sustained.

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