TaxTMI 
TaxTMI 
2023 (10) TMI 61
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.... Based on intelligence regarding non-payment of service tax on amount collected towards processing and transfer fees from wind energy generators, an investigation was taken up by the officers of Survey, Intelligence and Research (SIR) Wing of the Commissionerate. Investigation revealed that the appellant TANGEDCO had been collecting (i) fees / charges from the developers of windmills for processing their registration / application / name transfer from their Wind Energy Generators from 2008 to 2011 - 12, from 2012 - 13 to 2014 - 15 and from 2015 - 16 and 2016 - 17 for the services provided which it appeared is classifiable under the category of 'Business Auxiliary Service'. (ii) Consultancy charges for preparation of field feasibility report etc. to establish wind farms at notified sites i.e. Tirunelveli and Udumalpet in the State which services are classifiable under the category of 'Consultant Engineer Service'. (iii) A fee from non-employees towards participation in the training / workshop conducted by them at their training institute, which are classifiable under 'Commercial Coaching and Training' from 2010 - 11 onwards. (iv) The appellant had also let out their vacant land on r....
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.... Seventh Schedule to the Constitution. 'Transmit' as defined under section 2(74) of The Electricity Act, 2003 'means conveyance of electricity by means of transmission lines and the expression "transmission" shall be construed accordingly'. Prior to 1.7.2012, services for transmission of electricity, or for distribution of electricity were not liable for the levy of service tax. In this connection, he has drawn attention to the Govt. of India Notifications 11/2010-ST dated 27.02.2010, 32/2010 ST dated 22.06.2010 and to Notification No. 45/2010-ST dated 20.07.2010. He stated that from 1.7.2012, Section 66D(k) of the Finance Act 1994 covered transmission or distribution of electricity by an electricity transmission or distribution utility in the negative list. He further stated that when the first SCN was issued all the relevant facts were in the knowledge of the authorities. Later on, while issuing periodic show cause notices the same/similar facts could not be taken as suppression of facts on their part, hence the extended period could not have been evoked. He has cited several case laws in their favour and prayed that the appeals may be allowed, with consequential relief in all th....
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....tion franchisee, or any other person by whatever name called, authorized to distribute power under the Electricity Act, 2003 (36 of 2003), for distribution of electricity. 45-ST dated 20 July 2010 ... a practice was generally prevalent regarding levy of service tax (including non-levy thereof) ... on all taxable services relating to transmission and distribution of electricity provided by a person ... and that all such services were liable to service tax ... which were not being levied according to the said practice during the period up to 26th day of February, 2010 for all taxable services relating to transmission of electricity, and the period up to 21st day of June, 2010 for all taxable services relating to distribution of electricity; ... the Central Government hereby directs that the service tax payable on said taxable services relating to transmission and distribution of electricity provided by the service provider to the service receiver, which was not being levied in accordance with the said practice, shall not be required to be paid in respect of the said taxable services relating to transmission and distribution of electricity during the aforesaid period. The ....
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....ing of the relevant clause it is clear that expression "for use" means intended for use. Thus the word 'for' appearing in the notifications are to be construed as expressions of width and amplitude which cover within its scope any activity which is rendered in connection with the main activity of transmission and distribution of electricity. While examining a similar phrase the Hon'ble Bombay High Court in the case of ONGC v. CCE, Raigad [2013 (32) S.T.R. 31 (Bom.)] has held that - "where the legislature or its delegate uses the expression "in or in relation to", its object and purpose is to widen the scope and purview of its entitlement". A similar treatment has to be given to the word 'for' in the context of the notifications. It would not suffice to examine the form of the activity sought to be classified in isolation. The guiding factor would be to examine it in conjunction with the real nature and substance of the main activity i.e transmission and distribution. It has hence to be ascertained whether the activity sought to be classified is an essential activity which is having a direct and close nexus with transmission and distribution of electricity. If so, all these serv....
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....vices provided were 'management, maintenance or repair service' involving manning and maintenance of sub-stations; 'erection, commissioning or installation service' for erection of electrical lines of different capacities and transport of material from one location to another including - erection of sub-stations and allied services; transport of goods by road for transport of failed/repaired transformers and other material of the distribution companies; rent-a-cab operator service, provided to the distribution companies for transport of their personnel; Business Auxiliary Service by establishing' Customer Service Centres on behalf of distribution companies; and 'manpower recruitment and supply agency service', by supply of semi-skilled labour for attending to maintenance works in the sub-divisions of the distribution companies. .. by Notification No. 45/2010-ST dt. 20/07/2010, in exercise of powers conferred by Section 11 C of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994, granted immunity from the liability to remit service tax in respect of any taxable service provided in relation to transmission and distribution of elec....
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....of Notification No. 45/2010-ST dated 20.7.2010, transmission and distribution of electricity for the period upto February, 2010 has been retrospectively held to be not leviable to Service Tax in exercise of powers conferred by Section 11C of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994. Subsequently, the transmission of electricity has been held exempted vide Notification No. 11/2010- ST dated 27.2.2010 and distribution of electricity under Notification No. 32/2010-ST dated 22.6.2010. CC.,CEX & ST Hydrabad III Vs Sri Rajayalakshmi Cement Products 2017 (52) STR 309 (Tri. Hyd.) Erection, Commissioning or Installation Services (ECIS) - Liability to tax - In terms of Notification No. 45/2010-S.T., all taxable services relating to transmission and distribution of electricity provided by any service provider not taxable for period up to 26-2-2010 and up to 21-6-2010 respectively for services relating to transmission and distribution of electricity - Dropping of proceedings by adjudicating authority relying on C.B.E. & C. Circular No. 123/5/2010-TRU, dated 24-5-2010 proper. [para 5] MD Aub Khan Vs CC, CEx, & ST, Guntur 2015 (40) STR 267 (Tri.Bang.) ....
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.... by the appellant is mentioned below. i) Registration / application / name transfer from Wind Energy Generators (WEG): ['Business Auxiliary Service'], Registration fee, name transfer fee and Installation & tie up fee are fixed as statutory fee for grant of permission for setting up of a wind mill. ii) Preparation of field feasibility reports etc., to establish wind farms. ['Consultant Engineer Service']. The field feasibility report is prepared for the purpose of installation of wind electric generator. It is a mandatory/ statutory document and helps the appellant to monitor the role of the applicant in its capacity as an electric transmission and distribution utility. Without assessing feasibility and hereafter approving the grid tie up the appellant cannot allow the electricity generated by the WEG to enter the grid. iii) Non-employees for training/workshop. ['Commercial Coaching and Training']. The training given to its own employees is without collecting fees. Training for others is done by collecting a nominal fee for meeting the cost of training. The training is given as a part of human resource development as skill upgradation is essential for prov....