TaxTMI 
TaxTMI 
2025 (12) TMI 223
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....wo show cause notices: - First show cause notice dated 21.10.2014 was covering the period 2009-10 to 2012-13 wherein service tax of Rs.76,90,761/- was demanded on reimbursement of electricity charges by invoking the extended period of limitation. - Second show cause notice dated 20.04.2015 was covering the period 2013-14 wherein service tax of Rs.42,81,950/- was demanded on the reimbursement of electricity charges. Further, the learned Commissioner gave the benefit of cum-duty and confirmed the demand of service tax of Rs.69,08,086/- along with interest and penalty in respect of first show cause notice; confirmed the demand of service tax of Rs.38,10,920/- along with interest and penalty in respect of second show cause ....
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....e further submits that the department in the show cause notices has alleged that the Appellant has not fulfilled the condition under Rule 5 of the Service Tax (Determination of Value) Rules, 2006 and therefore, is not entitled for the benefit as a pure agent to exclude the reimbursement of the expenditure. He further submits that this issue is no more res integra and has been decided in a catena of decisions wherein it has been held that the service tax is chargeable on the value of services provided and the reimbursement of expenses is not chargeable to service tax. In this regard, he cites the decision of Hon'ble Delhi High Court in the case of Intercontinental Consultants & Technocrats Pvt Ltd vs. UOI - 2013 (29) STR 9 (Del.) wherein Rul....
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....T-DEL * CGST & CE, Chennai vs. M/s Ticel Bio Park Ltd - 2018- TIOL-219-CESTAT-MAD * Kiran Gems Pvt Ltd vs. CCE, Surat-I - 2019 (25) GSTL 62 (Tri. Ahmd.) 4.2 He further submits that the electricity is goods and is not liable to service tax. He also submits that the department in the show cause notices has given specific year-wise details on account of reimbursement of electricity charges; whereas, the electricity is goods covered under the Central Excise Tariff Act and therefore, the charges on account of supply of electricity is not chargeable to service tax and the levy of service tax on supply of electricity would be ultra vires to the Constitution of India. For this submission, he relies on the following decisions: ....
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.... not mentioned in the show cause notice or even in the adjudication order. For this, he places relies on the following decisions: * Federation of Indian Chambers of Commerce & Industry vs. CST, Delhi - 2015 (38) STR 529 (Tri. Del.) * Maharashtra Industrial Development Corporation vs. CCE, Nasik - 2014 (36) STR 1291 (Tri. Mumbai) 5. On the other hand, the learned Authorized Representative for the Revenue reiterates the findings of the impugned order. 6. We have considered the submissions made by both the parties and perused the material on records as well as the decisions relied upon by the Appellant. We find that the only dispute in the present case whether the service tax can be levied on reimbursement of electricit....
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.... the Tribunal in the case of ICC Reality (India) Pvt Ltd (supra), wherein it has been held as under: "9. ...We find that electricity is specifically covered under Tariff Heading 27 of 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... 10. In view of the above discussion, we find merit in the contention of the appellants that th....