TaxTMI 
TaxTMI 
2025 (1) TMI 938
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....sel for the appellant submits that though show cause notices allege that the appellants are not for eligible to avail the composition scheme Works Contract Scheme, the impugned orders seek to deny the benefit for the reason that erection/construction of the electricity distribution lines do not fall under the ambit of service in relation to transfer of electricity. Learned counsel for the appellant further submits that the issue is no longer res integra having been decided by this Bench in their own case vide Final Order No. 60120-60121/2022 decided on 23.08.2022. 3. Learned authorized representative for the revenue reiterates the findings of the impugned order. 4. Heard both the side and perused the record of the case. 5. We find, as submitted by the learned counsel for the appellants this bench has dealt with the matter in the case cited above and finds as follows: "9. The submissions advanced by the learned counsel for the appellant and the learned special counsel appearing for the department have been considered. 10. At this stage only the submission raised by the learned counsel for the appellant that the services provided by the appellant are exempt....
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.... 27.02.2010 Exemption to services provided for transmission of electricity In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided to any person, by other person for transmission of electricity, from the whole of service tax leviable thereon under section 66 of the said Finance Act." 13. To appreciate the submissions it would also be appropriate to reproduce the allegations contained in the show cause notice as also the reply filed by the appellant. 14. The relevant portion of the show cause notice dated 03.05.2012 is reproduced below: "10.3 In order to provide the taxable services of Transmission/Distribution of electricity, a number of other taxable services are used by the EDAS. These taxable services, like 'Works Contract Services' in the present case, are Input services for the EDAs which can be used by them to provide the Output services of Transmission/Distribution of electricity and the E....
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....rther clarified that renting of the meter qualifies for exemption under Notification No. 11/2010-ST. Thus, the intention of the government has always been to exempt all the services which are in relation to transmission of electricity. The activity of supply and construction of transmission lines is indispensable for providing the service of transmission of electricity and therefore is integral to the activity of transmission of electricity and is therefore exempt. D.4 The Noticee further submitted that the exemption under Notification No. 45/2010-ST dated 20.07.2010 and Notification No. 11/2010-ST dated 27.02.2010 is an omnibus exemption as the said Notification does not exempt any particular category of taxable service but exempts "all taxable services relating to transmission of electricity and distribution of electricity". Thus whether or not the taxable services relating to transmission of electricity and distribution of electricity are classifiable under a particular category of taxable service under the provisions of Finance Act, 1994, the exemption is available under Notification No. 45/2010-ST dated 20.07.2010 and Notification No. 11/2010-ST dated 27.02.2010 if th....
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....e EDAs which can be used by them to provide the Output services of Transmission/Distribution of electricity and the EDAs can avail CENVAT credit of Service Tax paid on these Input services, if otherwise admissible. These Input services, which are liable to Service Tax in the hands of other service providers (like KEC, in the present case), would not become exempted under the referred Notifications by virtue of the phrase 'relating to' used in these Notifications because this phrase expands the scope of the taxable service of Transmission/Distribution of electricity but does not completely change its nature and character by bringing entirely different and distinct taxable services within its ambit. Further, the phrase 'relating to' used in these Notifications cannot be interpreted to mean 'used to provide' or 'for use by any person to provide'. 17. As noticed above, the notification dated 20.07.2010 is in connection with exemption that can be availed for the period up to 26.02.2010 and the notification dated 27.02.2010 is for the period 27.02.2010 onwards. 18. A division bench of the Tribunal in KEC International dealt with contracts....
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....benefit of exemption under notification dated 20.07.2010 for the period upto 27.02.2010. 20. It would, therefore, be useful to reproduce the portion of the decision of the Tribunal in Kedar construction that was relied upon and it is as follows: "5. We notice that out of the total demand confirmed of Rs. 2,04,14,368/-, bulk of the demand of Rs. 1,90,47,124/- pertains to Commercial or Industrial Construction service rendered to Maharashtra State Electricity Transmission Co. Ltd., Maharashtra State Electricity Distribution Co. Ltd., Sunil Hi-Tech, Suraj Constructions, V.B. Bhike, etc. for transmission of electricity. Vide Notification 45/2010-S.T., all taxable services rendered 'in relation to' transmission and distribution of electricity have been exempted from the purview of Service Tax. The expression 'relating to' is very wide in its amplitude and scope as held by the Hon'ble Apex Court in Doypack Systems P. Ltd. - 1988 (36) E.L.T. 201 (S.C.). Therefore, all taxable services rendered in relation to transmission/distribution of electricity would be eligible for the benefit of exemption under the said Notification for the period prior to 27-2- 2010." 21. ....