TaxTMI 
TaxTMI 
2025 (8) TMI 1658
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....ainst recovery of amount from the recipient which is not taxable service, but the procurement of goods on behalf of the tenants. Therefore, the payment is excludable from the taxable service. 2. The facts of the case are that on scrutiny of Balance Sheet, Profit & Loss Accounts, bills, ledgers etc., of the respondent for the period from 2008-09 to 2012-13, it was found that the respondent has provided transmission or distribution of electricity services to their tenants and realised service charges to the tune of Rs.63,66,04,427/- under the category of "Management, Maintenance or Repair Services" during the above mentioned period, but has not paid Service Tax to the tune of Rs.6,31,29,127/. It was alleged in the Show Cause Notice that th....
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....that the assessee had made payment to West Bengal State Electricity Distribution Company Limited for electricity charges and recovered the expenses incurred for electricity from their tenants towards consumption of electricity bases on meter reading record. 2.3 Therefore, the Adjudicating Authority relied on the decision in the case of Commissioner of Sales Tax Vs Madhya Pradesh Electricity Board, Jabalpur [1969 (1) SCC 200] and in the case of State of A.P. Vs National Thermal Power Corporation Ltd.[2002 (5) SCC 203] wherein the Hon'ble Apex Court held that electricity is goods. 2.4 The Adjudicating Authority has also observed that the realisation of value of goods, i.e. electricity from the service recipient was less than what they h....
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.... the instant case, the respondent could not provide any documentary evidence indicating that they have qualified to be a transmission or distribution utility in terms of Section 65B (23) of Finance Act, 1994. But The Adjudicating Authority observed that with effect from 01.07.2012, Transmission or Distribution of Electricity by an electricity transmission or distribution utility are in negative list in terms of Section 66D(K) of Finance Act, 1994; but he has not considered the fact that the respondent were not qualified to be a electricity transmission or distribution utility and as such the services provided by the respondent would be chargeable to Service Tax. Further, the Adjudicating Authority, held that supply of electricity against re....
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....red to be set aside. 4. The ld.Counsel for the respondent submits that no service tax is chargeable on amounts booked under internal lighting/electricity income as the same are towards sale of electricity. To support her contention, she relies on the following judgments : (i) Kumbakonam Electric Supply Corporation Ltd. Versus Joint Commercial Tax Officer, Esplanade Division Madras - 1963 (9) TMI 43 - Madras High Court, affirmed by Hon'ble Supreme Court in the case of Commissioner of Sales Tax, Madhya Pradesh, Indore Vs. Madhya Pradesh Electricity Board, Jabalpur[1968 (11) TMI 85 - Supreme Court], wherein electricity has been held as goods.Similar proposition has been upheld in the case of State of AP & Others versus National The....
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....tion for the purposes of charging service tax. 4.3 She further submitted that the demand on internal lighting income stands dropped in cases of group companies of the respondent, and such orders have been accepted by the department. Thus, a different view cannot be adopted in the instant case. 4.4 Therefore, she prays that the impugned order is to be upheld. 5. Heard both the parties and considered the submissions. 6. The sole issue emerges here that the respondents are supplying electricity to their tenants, so whether the supply of electricity is "goods" or not ? 7. The said issue has been examined by the by the Hon'ble Madras High Court in the case of Kumbakonam Electric Supply Corporation Ltd. Versus Joint Commercial Tax ....
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....icity by the Sales Tax Department. Further, distribution of electricity is not a taxable activity under Service Tax, as clarified by Notification No.45/2010-ST. Further, we find that as per the facts noticed in the show cause notice, it is revenue's case that the appellant have sold electricity and not given the service tax of electricity. Accordingly, we find that the show cause notice with respect to sale of electricity as a distributor under the fact that the Electricity Department provided them with one common meter for the whole building, intrusting upon the appellant to give connection through sub meters to its tenant (s) and thereafter, they collected the amount and paid to the Electricity Department. Thus, the activity is also i....