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of <h1>Tribunal quashes assessment order, emphasizes Notification No. 45/2010-Service Tax, preventing undue tax burdens.</h1> <h3>B. Srinivasa Rao Versus Commissioner of Customs and Central Excise, Hyderabad-III Commissionerate, Hyderabad</h3> The Tribunal allowed the appeal, quashed the assessment order, and remitted the matter for fresh consideration regarding the applicability of Notification ... Transmission and distribution of electricity - Exemption under Notification No. 45/2010-Service Tax dated July 20, 2010 - Whether the appellant is entitled to immunity to the liability to service tax qua Notification No. 45/2010- Service Tax - Held that:- Prima facie, the Notification No. 45/2010-Service Tax provides a generic immunity to service tax liability in respect of taxable services provided in relation to transmission and distribution of electricity. The several taxable services allegedly provided by the appellant herein are claimed to have been provided to the Andhra Pradesh Central Power Distribution Company Ltd. (APCPDCL), an electricity distribution agency. According to the appellant, no service tax is therefore leviable on the services provided by it - Decided in favour of assessee. Issues:Assessment of service tax and penalties for various services provided to a power distribution company, applicability of Notification No. 45/2010-Service Tax providing immunity from service tax liability for services related to transmission and distribution of electricity.Analysis:1. Assessment of Service Tax and Penalties:The appellant was assessed to service tax, interest, and penalties for providing maintenance of repair service, erection, commissioning or installation service, goods transport agency service, rent-a-cab service, commercial or industrial construction service, business auxiliary service, and manpower recruitment and supply service to a power distribution company. The Revenue initiated proceedings and passed an adjudication order invoking the extended period of limitation due to alleged non-remittance of service tax for a specific period.2. Applicability of Notification No. 45/2010-Service Tax:During the appeal hearing, both the appellant's counsel and the Departmental Representative presented Notification No. 45/2010-Service Tax issued by the Central Government, which provides immunity from service tax liability for taxable services related to the transmission and distribution of electricity. The appellant argued that the services provided were to an electricity distribution agency, thus no service tax should be levied. The Tribunal noted that the notification was not considered by the adjudicating authority and decided that the matter should be remitted for fresh consideration.3. Decision:The Tribunal allowed the appeal, quashed the impugned order of assessment, and remitted the matter to the adjudicating authority for a fresh determination considering the applicability of Notification No. 45/2010-Service Tax. The Tribunal emphasized the generic immunity provided by the notification and directed a de novo assessment. No costs were awarded in the matter.This judgment highlights the importance of considering relevant notifications providing immunity from service tax liability and ensuring that all applicable factors are taken into account during assessments to avoid unnecessary tax burdens on taxpayers.
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