TaxTMI 
TaxTMI 
2017 (12) TMI 1194
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....ormer centres etc. and the applicant claimed the benefit of Notification No. 45/2010-ST dated 20.7.2010. the contention is that as per this Notification, all taxable services relating to transfer distribution of electricity provided by a person to any other person are exempted from payment of service tax hence the demand is not sustainable. 2.2. Ld. Counsel pointed out that the benefit of Notification No. 45/2010 has been denied. Ld. Counsel argued that the services provided to Executive Engineer, LWPD, Wardha (Shifting of Cables) is not taxable in terms of clarification at Sr. No.1 of the table of the Circular. Similarly, the services provided to Executive Engineer, Bemla, Yavatmal, IIT Delhi, MGIRI Wardha, which are all services of laying of cables from distribution point to the villages and premises of Power Grid, become non-taxable in terms of Sr. No.5. They also stated that most of the services rendered to MSEDCL, Power Grid Corporation, MVNL, which are essentially of shifting of overhead cables, laying of electric cables under or alongside roads, laying electric cable between grids/sub-stations/transformers en-route are non-taxable in the light of the said circular. 2.3....
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..../2010-ST exempts taxable service relating to transmission and distribution of electricity. He argued that distribution of electricity is not stand alone activity. He relied on the definitions of the distribution system from Wikipedia to assert that modern distribution system begins as the primary circuit leaves the sub-station and ends as the secondary service enters the customers meter. 2.6. Ld. Counsel argued that the Commissioner ought to have appreciated that the activities carried out by MSEDCL, MVNL Power Grid were the activities of supply, erection, commissioning and installation of transformers, providing of sub-station and laying of High Tension/Low Tension lines, which together constitute the activity of distribution of electricity. Similarly he argued that the work order of Executive Engineer, LWPD Wardha was of shifting of electric line, which is in the nature of transmission and distribution of electricity. He adopted the same work for the work done in respect of Executive Engineer, Bemla Yavatmal, BHEL and Sanskar Agro Processors, Wardha. 2.7. Ld. Counsel further argued that in respect of erection, commissioning or installation service, the benefit of abatement ....
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....ead cables and line and distribution systems for various clients mostly on works contract basis. Notification No. 45/2010-ST dt. 20.7.2010 issued under Section 11C of the Central Excise Act, 1944 exempts for the period upto 26th day of February 2010 for all taxable services relating to distribution of electricity. Vide Notification No. 11/2010-ST dt. 27.2.2010 the taxable services provided for transmission of electricity have been exempted. From the above, it is apparent that any services provided for transmission of electricity are exempted for the entire period. The services provided relating to distribution of electricity are exempted upto 21st day of June 2010 and all services relating to transmission of electricity are exempted upto 26th day of February 2010 in terms of Notification No. 45/2010 read with Notification No. 11/2010-ST. The CBEC has clarified vide Circular No. 123/5/2010-TRU dt. 24.5.2010 as follows. 3. The taxable status of various activities, on which disputes have arisen Based on the foregoing, the following would be the tax status of some of the activities in respect of which disputes have arisen- S. No. Activity Status 1. Shif....
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....iod of 26th day of February 2010 are clearly exempted from service tax and no bifurcation of any nature is needed. Bifurcation if any is required for the period after 26th day of February 2010. The Commissioner has simply in the seven lines dismiss all the defense of the appellant by stating that the appellants have not provided documentary evidence. We find that the said claim of the Commissioner is baseless and the order has been passed without application of mind. The order in so far as it relates to the service provided in respect of transmission and distribution of electricity is set aside and the matter is remanded to the Commissioner for fresh adjudication after examining all the contracts individually for this purpose. 5. Ld. Commissioner has denied the benefit of notification No. 1/06 on account of appellants failure to provide the necessary documentary evidence in support of the claim that fulfill the condition of the notification. The notification prescribes following conditions: Provided that this notification shall not apply in cases where- (i) The CENVAT credit of duty on inputs or capital goods or the CENVAT credit of service tax on input service....