Exemption for electricity distribution services upheld, with demand remanded for fresh computation under the notification.

Services such as preparing and distributing bills, verifying meter tampering and malfunction, attending disconnection of defaulting consumers, replacing and installing meters, and GIS mapping were treated as activities connected with the distribution of electricity. On that basis, they fell within the scope of Notification No. 45/2010-S.T. and were considered eligible for exemption for the covered period. Because the demand also extended to a later period after 21.06.2010, the matter required fresh adjudication for recomputation of the demand in accordance with law.

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Issues: Whether the services of preparing spot bills, distributing bills, verifying meter tampering and malfunction, attending disconnection of defaulting consumers, replacement and installation of meters, and GIS mapping were services in relation to distribution of electricity so as to qualify for exemption under Notification No. 45/2010-S.T. dated 20.07.2010.

Analysis: The disputed activities were held to be connected with the distribution of electricity and not outside its scope. The exemption notification was treated as applicable to such services for the covered period. As the demand also covered a later period after 21.06.2010, the matter required fresh consideration for recomputation of the demand in accordance with law.

Conclusion: The appellant was held eligible for the benefit of the exemption notification in respect of services relating to distribution of electricity, and the matter was remanded for fresh adjudication and requantification of the demand.

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