2014 (12) TMI 594

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....llants are engaged in the generation and distribution of electricity by using coal. They get Fly ash as remnant in wet and dry condition during the generation of electricity. The appellants disposed of the Fly ash as per the Notifications issued by the State Govt. and the Union Central Govt. They are collecting the charges for disposal of the fly ash from the Cement manufacturers and Brick manufacturers, in terms of the Notification. There is a demand of tax on the charges so collected by the appellants for disposal of the Fly ash under the category 'Support Services of Business'. 3. The adjudicating authority confirmed the demand of tax along with interest and penalty. The Commissioner (Appeals) rejected the appeal on the ground of non-....

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....se showing the activities as service charges, is factually incorrect. The appellant in the statement of Fly ash Generation/ Utilization and Disposal for the Period April 2005 to march 2006 mentioned the total amount as Revenue to Board. But, the Chief Engineer of Mettur Thermal Power Plant by his letter dated 10.5.2007 informed the Deputy Commissioner of Central Excise that the service charges is collected towards the disposal of fly ash for the infrastructure, water, lighting and road maintenance. The adjudicating authority on the basis of the said letter dated 10.5.2007 observed that the appellants are rendering certain facilities to their customers for lifting the fly ash from their premises, which is being charged as service charges. ....

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...., we have already stated above that the orders issued by the appellant to the cement and asbestos sheet companies do not disclose that the appellant provided any service to the companies. The appellants as per order of Government of Tamil Nadu removed the Fly ash from the site and collected rate as prescribed therein from the said companies. At the best, the amount collected by supply Fly ash utilized for water, lighting, road maintenance etc. in their site as referred in letter dated 10.5.2007 appears to be in conformity with the utilization of Fly ash as mentioned in Draft Notification dated 6.11.2008 issued by the Central Government, wherein the Thermal Power Stations are permitted to sell Fly ash. There is no mention in the contract bet....