Tribunal: No COD clearance needed after landmark judgment, service tax on 'Other Income' receipts not taxable.

The Tribunal ruled that COD clearance is no longer required post the Electronics Corporation of India Vs UOI judgment. It set aside the demand for service tax on 'Other Income' receipts, finding no taxable element in the income components. Additionally, the Tribunal dismissed the Revenue's appeal regarding the taxability of activities related to power supply, stating that certain services were incidental to the main power supply activity and not subject to tax liability. The cross objection filed by the Power supply company against the Revenue's appeal was also dismissed.

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Issues:
1. Need for COD clearance post Electronics Corporation of India Vs UOI judgment
2. Taxability of figures under 'Other Income' in Balance sheet for service tax levy
3. Appeal by Revenue against no service tax on certain activities

Analysis:
1. The judgment addresses the need for COD clearance following the Electronics Corporation of India Vs UOI judgment, stating that such clearance is no longer required. Appeals were taken up for disposal accordingly.

2. The issue of taxability of figures under 'Other Income' in the Balance sheet for service tax levy was extensively discussed. The appellant argued that the figures did not contain any element of taxable service, citing profit on sale of stores, plant and machinery, vehicles, and recovery of transport facilities as the components. The General Manager (Finance) certified the details of these realizations, emphasizing the absence of any taxable element. The Tribunal agreed, setting aside the demand for service tax as the receipts were not of a taxable service nature.

3. The Revenue appealed against the adjudication holding no service tax on 'Erection, Commissioning or Installation Services' and 'Technical Inspection and Certificate Services.' The Revenue contended that these activities were taxable, but the appellant argued that they were incidental to the main activity of supplying power and complied with regulatory measures. The Tribunal examined the activities and found that the appellant was primarily engaged in supplying power, with activities such as meter installation and testing being statutory obligations rather than taxable services. The Tribunal dismissed the Revenue's appeal, stating that the activities were part of the main power supply activity and not subject to tax liability.

Conclusion:
The Tribunal disposed of all matters, setting aside the demand for service tax on 'Other Income' receipts and dismissing the Revenue's appeal against the non-taxability of certain activities related to power supply. The cross objection filed by the Power supply company against the Revenue's appeal was also dismissed.

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