TaxTMI 
TaxTMI 
2013 (8) TMI 746
X X X X Extracts X X X X
X X X X Extracts X X X X
....t); penalty equivalent to the service tax assessed, under section 78 of the Act; and penalty of Rs. 10,000/- under section 77 of the Act. This order is assailed in the appeal by the assessee. 2. The assessee is a company, registered under the Companies Act, 1965 and is a distribution licensee under the Electricity Act, 2003. The business of the assessee is sale of electricity which is wholly regulated by provisions of the Electricity Act. In pursuant of its business, the assessee has to develop and maintain an efficient, coordinated and economical distribution network within its area of supply. To supply electricity to its consumers a network is first created. The assessee established a distribution network for providing connections to con....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on 66 of the Finance Act, 1994 in respect of taxable services relating to transmission and distribution of electricity provided by a person to any other person and though all such services were liable to service tax under the Act. In this appeal Distribution of electricity is the demonstrated business of the assessee. Under Notification No. 32/2010-ST dated 22.06.2010 (issued in exercise of powers conferred under section 93(i) of the Act) the Central Government has exempted the taxable service provided to any person, by a distribution licensee, a distribution franchisee, or any other person authorized to distribute power under the Electricity Act, 2003, for distribution of electricity, from the whole of the service tax leviable thereon unde....
X X X X Extracts X X X X
X X X X Extracts X X X X
....icity; that equipment installed by the assessee is not in lieu of hire charges; that the infrastructure (established by the assessee) is used to supply electricity to various consumers and the consumers do not have ownership of the transformers. The contention by the assessee that installation of the various equipment, establishing the network is an essential component of his business of distribution of electricity which is carried out in terms of the provisions of the Electricity Act, 2003 was rejected on the ground that all duties required to be delivered by a distribution licensees under provisions of Electricity Act are not exempt from payment of service tax. Other contentions were urged on behalf of the assessee has were also rejected ....