TaxTMI 
TaxTMI 
2016 (7) TMI 304
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....e cases. 2. On behalf of the appellant, learned counsel explains that the dispute in both the appeals arose on five counts:- (i) The civil work involving erection and commissioning of the wind operated electricity generator has been sought to be taxed under Finance Act, 1994 for the period 10.09.2004 to 31.03.2006raising tax demand of Rs. 3,45,91,502/-; (ii) Erection charges for the period 01.04.2008 to 31.03.2009 was taxed raising demand of Rs. 3,24,52,209/- on the ground that no tax was paid on such taxable service provided; (iii) The licence fee paid to the TNEB for infrastructure development has been sought to be taxed under Finance Act, 1994 for the period 10.09.2004 to 31.03.2009 raising tax demand of Rs. 7,63....
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....iability on such count which shall be subject to verification by the department for the period from 01.04.2008 to 31.03.2009 and appropriated against the demand. If there is deficiency, appellant shall discharge tax liability with interest if any payable. 5. The Development Charges were paid to TNEB in respect of infrastructure development licence. That has been taxed. That not being paid in relation to any services provided by TNEB that is not taxable since. Therefore, the Development Charges shall be out of the ambit of taxation under the provisions of the Finance Act, 1994. Further explaining the issue, learned counsel submits that the appellant as a contractor pays the Infrastructure Charges to TNEB first ....
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.... was on the premise that the input suffering duty were used in the manufacture of generator by appellant. That remained undisputed. However, when the appellant became aware of the law, it discharged duty liability with interest on the input credit taken wrongly and utilised the same. Therefore Revenue did not suffer. Discharge of duty liability is also an admitted fact in para 12.1 of the adjudication order. Learned counsel emphasizes that if at all liability arises on the Cenvat credit issue for Calculation of interest on utilised credit, that shall be governed by the judgment of the Hon'ble Madras High Court in the case of Commissioner of Central Excise, Madurai Vs Strategic Engineering (P) Ltd., reported in 2014 (310) E....
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....iency that shall be paid with interest. Such a proposition is fair. Revenue is to work out the demand aspect on this count and appropriate the tax already paid. Unpaid amount shall be realised with interest. Learned counsel prays that department should provide the details of payment and deficiency, if any for its Verification. No adverse view on such count shall be taken by the department since appellants approach appears to be fair on the issue. 12. The Infrastructure Charges paid to TNEB and incurred by the appellant directly as well as reimbursed to it, is not in relation to any services provided by the appellant to its clients. Therefore, in the absence of any taxing entry to tax such receipts the a....