2011 (4) TMI 1188

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.... does not encompass the nature of receipts of the appellant to the fold of levy of service tax. 3. Learned Counsel Shri J.K. Mittal for the appellants submits that Revenue examined Balance sheet of the appellant company and figures appearing under the head 'Other Income" were picked up for issuing show cause notice to raise the impugned demand, while details of those figures are apparent from para 15.8 of the adjudication order self explaining nature thereof at page 19 thereof. 4. According to the appellant, no item that is appearing in para 15.8 contain any element of taxable service. The authorities examined constituents of the figure Rs.5,37,944/- relating to the year 2003-04 and Rs.19,04,648/- relating to the year 2004-05. Such co....

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....and finding that proper explanation for the amounts of Rs.5,37,944/- and Rs.19,04,648/- was not given, demands were correctly confirmed. However, he had no materials to demonstrate the entry under which service tax can be confirmed. 7. Heard both sides and perused the record. 8. We first take up the Appeal No.334/2010 filed by the appellant company. In this appeal, we have found from various documents that the receipts alleged had no characteristics of any taxable services provided. Combined reading of para 15.8 of the order in original/ reply of the appellant appearing at page 91, details of other income appearing at page 119 of the appeal folder, satisfy us that those receipts are not of the nature of any taxable service provided by....

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....also done for the purpose of carrying out inspection of old connections. So far as the testing of meters is concerned, his submission is that respondent's categorical reply in para d(5) of the reply to the show cause notice was that the respondent is not providing any testing service but testing is required as a regulatory measure under the Electricity Law before installation and reinstallation of a meter. Consequently, there shall be no liability when the activity of testing is a statutory obligation. Therefore, there is no reason to levy of tax on these activities which is part of the main activity of supply of power and a requirement under the Electricity Law. 12. We tried to find out whether the respondent company was an installing a....