2014 (11) TMI 336

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f Rs. 2,04,14,368/- along with interest thereon and imposing equivalent penalty against the appellant M/s. Kedar Constructions. Aggrieved of the same, the appellant is before us. 2. The ld. counsel for the appellant submits that the appellant undertook the construction of sub-station for electricity transmission and also maintenance/repair of sub-station for Maharashtra State Electricity Transmission Co. Ltd. and also as sub-contractor to Sunil Hi-Tech and Suraj Constructions. These activities also related to transmission of Electricity. Such activities have been exempted from service tax vide Notification No. 45/10-ST dated 20.7.2010. Vide the said Notification, exemption has been provided on taxable service relating to transmission and d....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... 2013 (30) STR 259 and Shri Ganesh Enterprises - 2014-TIOL-187-CESTAT-BANG. In these decisions, it has been held that in view of the retrospective exemption vide Notification 45/2010-ST granted to services provided relating to electricity transmission, the demands are not sustainable. As regards the period post 26.02.2010, though the expression used is services rendered 'for distribution of electricity', as per the Supreme Court decision in the case of Indian chamber of Commerce [AIR 1976 SC 348], the expression 'for; has to be interpreted as 'for the purposes of'. As per the Electricity Act, 2003, 'transmission' has been defined to include conveyance of electricity by means of transmission lines. "Transmission ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....eliance is placed on the decision of the Tribunal in the case of Telco Construction Equipment Co. Ltd. [2013 (32) STR 482] wherein it was held that unless there is a integral nexus between the output taxable service and the input service, the benefit of Cenvat Credit would not accrue. Accordingly, it is prayed that the impugned demands are sustainable in law. 4. We have carefully considered the submissions made by both sides. 5. We notice that out of the total demand confirmed of Rs. 2,04,14,368/- bulk of the demand of Rs. 1,90,47,124/- pertains to Commercial or Industrial Construction service rendered to Maharashtra State Electricity Transmission Co. Ltd., Maharashtra State Electricity Distribution Co. Ltd., Sunil Hi-Tech, Suraj Construc....