2018 (2) TMI 1257

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....1, the respondent herein required to pav service tax amount collected from their tenants as reimbursable electricity charges or otherwise. The Adjudicating Authority has confirmed the demands raised along with interest imposed penalties Aggrieved by such an order, an appeal was preferred by the respondent arid the First Appellate Authority by impugned order set aside the Order-in-Original as regards the inclusion of electricity charges in the value as consideration.  4. We find that the First Appellate Authority in the impugned order in paragraphs 7.4 and 7.5 has recording the following findings: "7.4 In the present case it is observed that the Appellants and VPT are service providers as well as service receivers, since rendering tax....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... charges to the appellants on actual basis. On examining both the agreements dated 05.01.1995 and 05.01.2000, it is observed that VPT and ESSAR made arrangements for electricity in such a manner that the electricity charges are being reimbursed each other on actual so that there is no effect to their service charges of each other. It is nor in dispute that electricity was used for running of ground conveyor of the appellant which was given on lease to VPT. The issue here to the decided is whether providing electricity for running the impugned conveyor is connection with providing of "renting of conveyor". Since the appellants have given their around conveyor with an arrangement of supply of to VPT, it I to be treated that providing electric....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....to the Central Excise Tariff Act. We find that as per the provisions of Maharashtra Value Added Tax Act, 2002, electricity is also covered under Schedule A Sr. No.20 and charged to Nil rate of tax. In view of this, we find the electricity is goods chargeable to duty under Central Excise Tariff as well as under the Maharashtra Value Added Tax Act, 2002. Therefore, the supply of electricity to tenant amounts to sale of goods and not supply of service. Further the Notification No.12/2003-S.T., dated 20-6-2003 exempt from Service Tax, value of goods supplied by service provider to service recipient. Further we find that the Commissioner of Central Excise Pune-III vide dated 28-11-2011 relied upon by the appellants dropped the proceedings which ....