Tribunal waives Rs.66,47,95,520 Service Tax and penalties, citing legal exemption for electricity services.

The Tribunal disposed of the appeal without requiring the pre-deposit of Service Tax amounting to Rs.66,47,95,520 and penalties, indicating the potential resolution at that stage. It found the Commissioner's Order-in-Original unsustainable in law due to the applicability of Notification No.45/2010 under section 11C of the Finance Act, 1994, exempting service tax on specific electricity transmission and distribution services during certain periods. Consequently, the Tribunal set aside the Commissioner's order, allowed the appeal, and disposed of the stay petition.

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Issues:
Waiver of pre-deposit of Service Tax, application of Notification No.45/2010 under section 11C of the Finance Act, 1994, sustainability of Commissioner's Order-in-Original.

Analysis:
The applicant sought a waiver of pre-deposit of Service Tax amounting to Rs.66,47,95,520 along with penalties imposed under the Finance Act, 1994. The Tribunal decided to dispose of the appeal without the pre-deposit requirement, indicating that the appeal itself could be resolved at that stage. The appellant contended that a Notification (No.45/2010) issued under section 11C and made applicable to the Finance Act, 1994, regarding the levy of service tax on transmission and distribution of electricity, should be considered. The Notification exempted the service tax on such services during specific periods if not levied according to prevailing practices. The Tribunal found the Commissioner's Order-in-Original unsustainable in law based on the Notification's applicability and set it aside, ultimately allowing the appeal and disposing of the stay petition as well.

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