2023 (4) TMI 436

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....upply agency services and legal services with interest has been assailed by Madhya Pradesh Transmission Company Ltd [the appellant]. 2. The appellant is a public sector undertaking established by the Government of Madhya Pradesh for transmission of electricity within the city of Jabalpur and is a successor company of the State Electricity Board. For the transmission of electricity, the appellant is required to erect or construct electric sub-stations, electricity poles, electrical lines, provide consultation for transmission of electricity from one point to another, transmit electricity from the power grid or dams or power generation area to the city limits or to the customers. 3. A show cause notice dated 10.08.2018 was issued to the app....

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....es or penalties and in support of this contention, reliance was placed upon a Division Bench decision of the Tribunal in M/s Madhya Pradesh Poorva Kshetra Vidyut Vitaran Company Ltd. vs Commissioner of CGST & Central Excise, Jabalpur [Service Tax Appeal No. 50289 of 2019 decided on 12.04.2022]. The learned counsel also pointed out that the Commissioner committed an illegality in holding that the appellant was liable to pay service tax on manpower recruitment services and legal services. 6. Dr. Radhe Tallo, learned authorized representative appearing for the department pointed out that for the manpower recruitment service and legal services the appellant could not substantiate the factual aspects and so the Commissioner was justified in con....

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.... of electricity would be exempt from payment of service tax since transmission and distribution of electricity is exempted. It is also clear from aforesaid decision that all services related to transmission and distribution of electricity are bundled services, as contemplated under section 66F(3) of the Finance Act, and are required to be treated as a provision of a single service of transmission and distribution of electricity, which service is exempted from payment of service tax. 11. In the present case the amount collected towards consultation services is in connection with services which are incidental to the transmission activities carried out by the appellant. The demand, therefore, cannot be sustained in the view of the aforesaid d....