TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: (i) Whether the services of supply, erection, commissioning and allied activities undertaken for power substations and transmission lines were exempt as services in relation to transmission and distribution of electricity under Notification No. 45/2010-ST dated 20.07.2010; and (ii) whether the separate freight and insurance charges could be brought to tax as goods transport agency service in the absence of consignment notes.
Issue (i): Whether the services of supply, erection, commissioning and allied activities undertaken for power substations and transmission lines were exempt as services in relation to transmission and distribution of electricity under Notification No. 45/2010-ST dated 20.07.2010.
Analysis: The contracts, when read with their scope and purpose, were found to cover supply, construction, erection and commissioning of sub-stations and transmission line towers for utilities engaged in transmission and distribution of electricity. The expression "in relation to" was treated as broad enough to cover such preparatory and enabling activities connected with transmission and distribution infrastructure. The exemption notification was applied retrospectively to the relevant period, and the demand based on classification under erection, commissioning or installation service and works contract service was held unsustainable.
Conclusion: The issue was answered in favour of the assessee, and the demand relating to these services was held to be not taxable.
Issue (ii): Whether the separate freight and insurance charges could be brought to tax as goods transport agency service in the absence of consignment notes.
Analysis: The freight and insurance component was examined as part of the transportation arrangement connected with execution of the project contracts. Since consignment notes, which are central to fastening liability in goods transport agency service, were not established on record, and the demand was sought on the basis of the contractual freight figures alone, the levy was not sustained.
Conclusion: The issue was answered in favour of the assessee, and the freight and insurance demand was also held not payable.
Final Conclusion: The impugned order dropping the entire service tax demand was upheld, and the revenue appeal failed.
Ratio Decidendi: Services integrally connected with the creation of electricity transmission and distribution infrastructure fall within the exemption for services "in relation to" transmission and distribution of electricity, and a goods transport agency levy cannot be fastened without the statutory indicia required for that category.
TaxTMI 
TaxTMI 
