TaxTMI 
TaxTMI 
2024 (7) TMI 1737
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....riod from 27.02.2010 the service tax was not payable in view of Notification No. 11/2010-ST dated 27.02.2010 in view of clause (k) of Negative List of services in Section 66D of the Finance Act, 1994. He submits that the issue is no longer res-integra as in the appellant's own case this Tribunal has passed various orders which are based on various other decisions. He placed reliance on the following decisions including the decision in the appellant's own case :- (a) Final Order No.10331-10332/2024 dated 6th February 2024 (b) Final Order No. 19052/2024 dated 26th April 2024 (c) Final Order No.11096/2024 dated 13-5-2024 (d) Hyderabad Power Installations P. Ltd v CST-2016 (7) TMI 599 (e) Hyderabad Power Installations P. Ltd v CST-2016 (45) STR 217 (f) CCE vs. Sri Rajyalakshmi Cement Products - 2017 (52) STR 309 (g) Madhya Pradesh Power Transmission Co. Ltd v Pr. Commr- 2023 (385) ELT 152 (h) Madhya Pradesh Poorva Kshetra VidyutVitran Company Limited v. Commr - 2021 (2) TMI 155 (i) Kailash Dev build India P. Ltd v CCE - 2023 (12) TMI 1010 (j) Tamilnadu Generation and Distribution Corpn. Li....
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....pra) - The Hon'ble Gujarat High Court passed the following order :- "7. In the backdrop of the facts and contentions noted hereinabove, the first question that arises for consideration is as regards the maintainability of the petitioner. A preliminary contention has been raised that the petition is not maintainable as the same is directed against a summons issued by the respondent authorities. In this regard, a perusal of the impugned summons dated 28-3-2018 clearly reveals that the same is based on the impugned circular dated 1-3-2018, inasmuch as the petitioner has been called upon to produce (i) copy of balance-sheets, Form 26AS and Profit and Loss Accounts for financial years 2012-13 to 2016-17; bifurcation of income head along with ledger account of each income head, namely, (i) application fee for releasing connection of electricity; (ii) rental charges against metering equipment; (iii) testing fee for meters/transformers, capacitors etc; (iv) labour charges from customers for shifting of meters or shifting of service lines; (v) charges for duplicate bill; (vi) income from shifting of HT Lines received from MEGA. This part is not subject matter of challenge in th....
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....th respect to the taxability of the service provided to M/s. Metro Link Express for Gandhinagar and Ahmedabad (MEGA), which according to the respondents is a declared service falling within the ambit of clause (e) of Section 66E of the Finance Act; the second part is with regard to the related/ancillary services of transmission and distribution of electricity, which, according to the petitioners, were exempted by virtue of notifications dated 27-2-2010 and 22-6-2010. It is clear that insofar as the taxability of the services provided to MEGA is concerned, this court is not required to enter into the merits thereof, as the Learned Counsel for the petitioners has submitted that to that extent, the petitioners shall respond to the summons. 9. As noticed earlier, the petitioners have filed the present petition, calling in question the summons dated 28-3-2018 issued by the respondent calling upon the petitioners to give evidence or make statement and to produce the documents and things mentioned in the schedule thereto. A perusal of the impugned summons reveals that the same relates to three phases; (i) prior to 1st July, 2012, namely, the pre-negative list regime; (ii) from 1s....
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.... the exemption for transmission and distribution of electricity extended under relevant notifications. 13. Thus, the reason for saying that supply of electricity meters for hire to consumers is covered by the exemption notification is that such service is an essential activity having direct and close nexus with transmission and distribution of electricity. This circular only provides an interpretation of when a service would stand included in another service, namely, when such service is an essential activity having direct and close nexus with the exempted activity. Therefore, the fact that the exemption notifications came to be rescinded would have no bearing inasmuch as the circular only clarifies what according to the Government of India would stand included in another service. Such interpretation would not change merely because such exemption is now granted under some other provision. 14. It may be noted that insofar as the exemptions prior to the negative list regime as well as post the negative list regime are concerned, it is the transmission and distribution of electricity that has been exempted by virtue of notifications. During the negative list regime, ....
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....erpretation of the very same services as against the clarification issued for the pre-negative list regime. 15. Thus, from the very manner in which the respondents have treated the services related to transmission and distribution of electricity during the pre- negative list regime, such services would stand covered by the exemption granted to transmission and distribution of electricity by virtue of inclusion of such services in the list of negative services under Section 66D(k) of the Finance Act as well as by virtue of exemption notification issued under the CGST Act. 16. Examining the issue from the alternative argument advanced on behalf of the petitioners, if related services are per se not covered within the ambit of transmission and distribution of electricity, the question that next arises for consideration is whether such services would fall within the ambit of bundled services as contemplated under Section 66F(3) of the Finance Act and within the ambit of "composite service" as defined under Section 2(30) of the CGST/SGST Acts, and, therefore, liable to be taxed at the rate of the principal supply. Another question is whether Section 66F(3) of the Finan....
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....ts of provision of any other service or services." 18. Insofar as sub-section (1) of Section 66F is concerned, from the illustration provided thereunder, it is evident that while service by the Reserve Bank of India finds place in the negative list, by virtue of the illustration to sub-section (1) of Section 66F, it is provided that any agency service provided by any bank to the Reserve Bank of India would not stand included in the main service, as such agency service is used by the Reserve Bank of India by way of input service for providing main service and in respect of such service the concerned bank receives consideration and would not get excluded from the levy of service tax by inclusion of the main service in the negative list. Thus, in terms of the illustration, an input service would not be exempt from the levy of service tax merely because the main service is exempt. According to the respondents, this case at best would fall under sub-section (1) of Section 66F of the Finance Act and would not be exempted from levy of service tax. It has also been contended that as services in the negative list are not chargeable to tax, Section 66F would not apply to services fa....
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....lectricity to such premises immediately after such extension or commissioning or within such period as may be specified by the Appropriate Commission : Provided further that in case of a village or hamlet or area wherein no provision for supply of electricity exists, the Appropriate Commission may extend the said period as it may consider necessary for electrification of such village or hamlet or area. Explanation. - For the purposes of this sub-section, "application" means the application complete in all respects in the appropriate form, as required by the distribution licensee, along with documents showing payment of necessary charges and other compliances. (2) It shall be the duty of every distribution licensee to provide, if required, electric plant or electric line forgiving electric supply to the premises specified in sub-section (1) : Provided that no person shall be entitled to demand, or to continue to receive, from a licensee a supply of electricity for any premises having a separate supply unless he has agreed with the licensee to pay to him such price as determined by the Appropriate Commission. (3) If a distribution licensee....
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....des - (a) any support for any such line, that is to say, any structure, tower, pole or other thing in, on, by or from which any such line is, or may be, supported, carried or suspended; and (b) any apparatus connected to any such line for the purpose of carrying electricity. Electric plant has been defined under sub-section (22) of Section 2 of the Electricity Act to mean any plant, equipment, apparatus or appliance or any part thereof used for, or connected with, the generation, transmission, distribution or supply of electricity but does not include - (a) an electric line; or (b) a meter used for ascertaining the quantity of electricity supplied to any premises; or (c) an electrical equipment, apparatus or appliance under the control of a consumer. 22. Thus, any line which is used for carrying electricity for any purpose as well as any apparatus connected to any such line for the purpose of carrying electricity is mandatorily required to be provided to the consumer by the licensee. Moreover, any plant, equipment, apparatus or appliance or any part thereof used for, or connected with, the generation, transmission, distribution or supply of electricity, except for electric....
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....ricity would be covered by the exemption for transmission and distribution of electricity extended under the relevant notifications. Therefore, the taxability of the related/ancillary services are required to be given same treatment as is given to the single service, which gives such bundle its essential character, namely, transmission and distribution of electricity. 24. It has been contended on behalf of the respondents that sub-section (3) of Section 66F of the Finance Act would not apply where the single service which gives the bundle of services its essential character is exempt from the levy of service tax. In the opinion of this Court, there is nothing in the language employed in sub-section (3) to Section 66F to read into it a requirement that such service should not be exempt from tax. All that the sub-section provides is that taxability of bundled services shall be determined in the manner provided therein. The term taxability means liability to taxation. Thus the term taxability would take within its sweep not being taxable also inasmuch as liability to taxation would also mean not being liable to any tax. Thus, the liability to tax of a bundled service has to b....
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....in to Section 66F(3)(a) of the Finance Act. Both require that to fall within the ambit thereof the services should be naturally bundled in the ordinary course of business. While clause (a) of Section 66F(3) of the Finance Act uses the expression "shall be treated as provision of the single service which gives such bundle it essential character"; clause (a) of Section 8 of the CGST Act uses the expression "shall be treated as a supply of such principal supply". As to what is a principal supply is defined in Section 2(90) of the CGST Act to mean the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary. In other words "principal supply" is the supply which gives the bundle its essential character. Reverting to the facts of the present case, the principal supply of transmission and distribution of electricity is naturally bundled and supplied in conjunction with the related/ancillary services in the ordinary course of business, accordingly, in view of the provisions of clause (a) of Section 8 of the CGST Act, the tax liability of such composite supply is required to b....
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....in conjunction with each other. Adverting to the facts of the present case, the related supplies cannot be supplied separately nor are the principal supply and related supplies independent of each other. The related supplies are dependent on the principal supply of transmission and distribution of electricity and vice versa, neither service can be provided independent of the other. The transmission and distribution of electricity cannot be done without the help of electric line, electric plant and electric meter, and nor can the related services be used for any purpose other than for transmission and distribution of electricity. The principal supply and the related/ancillary services go hand in hand and one cannot be provided independent of the other. The upshot of this discussion is that the services provided by the petitioner are in the nature of composite supply and therefore, in view of the provisions of clause (a) of Section 8 of the CGST Act, the tax liability thereof has to be determined by treating such composite same as a supply of the principal supply of transmission and distribution of electricity. Consequently, if the principal supply of transmission and distribution of....
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.... licensee. The term "electrical plant" takes within its sweep any plant, equipment, apparatus or appliance or any part thereof used for, or connected with, the generation, transmission, distribution or supply of electricity, except for electric meter and any electrical equipment, apparatus or appliance under the control of a consumer. Sub-section (2) of Section 43 of the Electricity Act casts a duty upon the licensee to provide, if required, electric plant or electric line for giving electric supply to the premises. Therefore, providing electric line and electric plant are elements of service which are naturally bundled in the ordinary course of business, with the single service of transmission and distribution of electricity which gives the bundle its essential character. The only related service which does not fall within the ambit of the definitions of electric line and electric plant is the meter used for ascertaining the quantity of electricity supplied to any premises. However, insofar as installation of electricity meter and hire charges collected in respect of electricity meters are concerned, by the circular dated 7th December, 2010 the Government of India has clarified th....
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....stribution of electricity. Consequently, if the principal supply of transmission and distribution of electricity is exempt from levy of service tax, the tax liability of the related services shall be determined accordingly. 30. For the foregoing reasons, the petition succeeds and is, accordingly, allowed to the following extent : Paragraph 4(1) of the impugned Circular No. 34/8/2018-GST, dated 1-3-2018 to the extent the same reads as under is hereby struck down as being ultra vires the provisions of Section 8 of the Central Goods and Services Tax Act, 2017 as well as Notification No. 12/2017-C.T. (R) Serial No. 25 : 4. (1) Whether the activities carried out by DISCOMS against recovery of charges from consumers under the State Electricity Act are exempt from the GST (1) Service by way of transmission or distribution of electricity by an electricity transmission or distribution utility is exempt from GST under Notification No. 12/2017-C.T. (R), Sl. No. 25. The other services such as, - Application fee for releasing connection of electricity; i. Application fee for releasing connection of electricity; ii. Rental Charges against metering equipment; ....
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....aghvendra Rao submitted that the challenge in this appeal is now limited to the demand, interest, penalty etc, confirmed under ECIS. He pointed out that the issue is no longer res integra as the same is settled in the following cases: * Shri Ganesh Enterprises Vs CCE, Hyderabad-III [2014-TIOL-187-CESTAT- BANG] * K. Shanmugavelu Vs CCE, Mudurai [2014-TIOL-1325-CESTAT-MAD] * Kedar Construction Vs CCE, Kolhapur [2015 (37) S.T.R. 631 (Tri-Mumbai] * UP Rajkiya Nirman Nigam Ltd Vs CCE, Meerut [2015-TIOL-1485-CESTAT- DEL] * Elmech Enterprises Vs CCE, Hyderabad-III *[2015-TIOL-459-CESTAT- BANG] 4. We find that the appeal before us is more than amply covered by the above judgments. The relevant portion of the judgment in Elmech Enterprises case is reproduced below: 5. The Notification No. 45/2010-ST provides exemption to all taxable services relating to transmission and distribution of electricity by a person to another person during the relevant period covered by the proceedings. It is not limited only to taxable service of transmission by the transmission company as observed by the learned original adjudicating authority. Prim....
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....iable thereon under section 66 of the said Finance Act. 7. The aforesaid dispute resulted in a number of show cause notices demanding service tax on such services provided related to Distribution/Transmission of electricity. We find that show cause notice O.R. 35/2011-ADJN. ST(Commissioner) (HQ POR No. 01/2011-STATE 1), dated 21-1- 2011 was in addition to this very appellant-assessee for non-payment of service tax under the category ECIS etc., as the department harboured a view that services rendered by the appellant with Power Distribution/Transmission Companies were not eligible for exemption under Notification No. 45/2010-S.T., reference of which has been made in SCN dated 30-12-2011 related to the present appeal. 8. Subsequently, however the Government has issued a Notification No. 45/2010-S.T., dated 20-7-2010 the relevant portion of which is reproduced below : "Whereas, as Central Government is satisfied that a practice was generally prevalent regarding levy of service (including non-levy thereof), under section 66 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), on all taxable services relating to transmission and....
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....ded their land under lease agreement to a business organisation and received payment to that effect. The department entertained the view that the appellant has provided taxable services under the category of "Erection, Commissioning or Installation Services (ECIS)" and Renting of Immovable Property Services, however, have neither disclosed these facts to the Department nor discharged appropriate service tax liability thereon. 2. In adjudication proceedings, service tax demand of Rs. 60,68,455/- was confirmed on services rendered under the category of ECI Services. Demand of Rs. 4,91,145/- was confirmed on services rendered under the category of Renting of Immovable Property. Hence this appeal. 3. The learned Counsel appearing for the appellant Shri R. Raghvendra Rao submitted that the challenge in this appeal is now limited to the demand, interest, penalty etc., confirmed under ECIS. He pointed out that the issue is no longer res integra as the same is settled in the following cases : * Shri Ganesh Enterprises v. CCE, Hyderabad-III [2014-TIOL-187-CESTAT- BANG] * K. Shanmugavelu v. CCE, Mudurai [2014-TIOL-1325-CESTAT-MAD] * Kedar Construc....
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....f appellate authority, Appellate Tribunal or any Court, the refund claim can be made before the expiry of one year from the date of such judgment, decree or direction. The statutory interpretation in such a situation, as distilled from settled law, is that when there are in an enactment two provisions which cannot be reconciled, they should be so interpreted that if possible, effect should be given to both. This is what is called as harmonious construction. Only if this is not possible as observed by the Hon'ble Apex Court in South India Corporation (P) Ltd. v. Board of Revenue, Trivandrum [AIR 1964 SC 207 at page 215], "A familiar approach in all such cases is to find out which of the two apparently conflicting provisions is more general and which is more specific and to construe the more general one as to exclude the more specific". This principle is expressed in the maxims "Generaliaspecialibus non derogent" and "Generaliaspecaliaderogent" which means that general things will not derogate from the special provisions and is invoked to determine the scope of a general enactment with reference to a special enactment which precedes it. 12. We find that both the apparent....
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....tations. The appellant collects the amount for consultation services which are incidental to the transmission activities as the appellant has the expertise in power transmission. If the poles, lines or sub-stations are not erected or constructed as per the specifications, it will not be possible to transmit electricity. 10. The issue that arises for consideration is as to whether service tax could be levied on the amount collected by the appellant towards consultancy charges. This issue was examined by a Division Bench of the Tribunal in Madhya Pradesh Poorva Kshetra Vidyut Vitran Company Ltd. decided on 14-1-2021 and after placing reliance upon the decision of the Gujarat High Court in Torrent Power Ltd. v. Union of India [Special Civil Application No. 5443 of 2018, decided on December 19, 2018) [2020 (34) G.STL 385 (Guj.) [2019] 101 taxmann.com 303 (Guj)) the Tribunal observed as follows- "28. It is clear from the aforesaid judgment of the Gujarat High Court that the activities that are related/ancillary to transmission and distribution of electricity would be exempt from payment of service tax since transmission and distribution of electricity is exempted. It i....
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....dicated above." (e) Madhya Pradesh Poorva Kshetra Vidyut Vitran Co Ltd (supra), CESTAT New Delhi held asunder :- 17. The issue that arises for consideration in this appeal is whether the appellant is providing taxable service by way of collecting amount under the following headings: Late payment Surcharge Taxable under section 66E(e) of the Finance Act as a 'declared service' Meter Rent Taxable under section 66E(f) of the Finance Act as a 'declared service' Supervision Charges Taxable under section 66B(44) of the Finance Act that defines the term 'service'. 18. As noticed above, there is no dispute on payment of service tax on the lease rent income, on which the demand of service tax to the extent of Rs. 3,69,543/- has been paid by the appellant. The dispute on this amount is only on the amount of penalty that has been levied. 19. The appellant is a Public Sector Undertaking primarily engaged in the business of transmission and distribution of electricity, which is covered under Negative List entry under section 66D(k) of the Finance Act relating to "transmission or distribution of electricity by an elect....
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....ion and distribution of electricity, which service is exempted under the negative list under section 66D(k) of the Finance Act. 24. In this connection it needs to be noted that prior to introduction of the negative list regime for service tax under the Finance Act, there was no specific clause in the charging provisions of the Finance Act requiring payment of service tax on the amount collected from the consumers in relation to transmission and distribution of electricity. The Government of India issued a Notification dated February 27, 2010 exempting taxable service provided to any person by any other person for transmission of electricity. Another Notification dated June 22, 2010 was issued exempting taxable service provided to any person by a distribution, licensee or franchisee for distribution of electricity. There was some confusion and notices were issued by the department in respect of the activities relating to transmission and distribution of electricity for the period prior to the aforesaid notification. Various representations were received by the Government relating to the period prior to February 27, 2010 and June 22, 2010 as the transmission/ distribution co....
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....n of electricity by an electricity transmission or distribution utility, finds place in the negative list and, is therefore, not exigible to service tax. 12. The first question that arises for consideration is whether services relating to transmission and distribution of electricity fall within the ambit of clause (k) of section 66D of the Finance Act and, are therefore, exempt. In this regard, it may be noted that prior to the coming into force of the negative list regime, goods and services were exempted by virtue of notifications issued in exercise of powers under sub-section (1) of section 93 of the Finance Act. By virtue of Notification No. 11/2010 dated 27.2.2010, the Central Government exempted transmission of electricity from the whole of service tax leviable thereon under section 66 of the Finance Act; and by virtue of Notification No.32/2010-Service Tax dated 22.6.2010, distribution of electricity came to be exempted from the whole of service tax leviable thereon under section 66 of the Finance Act. Thus, what was exempt under those provisions was transmission and distribution of electricity, despite which, during the pre-negative list regime, the respondents hav....
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....refrain of the respondents is that in view of the fact that the exemption notification stands rescinded, the clarification also stands rescinded. What is lost sight of is that the clarification was only in respect of electric meters, whereas all related services were included within the ambit of transmission and distribution of electricity and given the benefit of the exemption notifications. Moreover, the clarificatory circular merely clarifies the stand of the Government as regards what would stand included within the meaning of "transmission and distribution services" namely, essential activities having direct and close nexus with the transmission and distribution of electricity. The respondents having themselves considered the services in question as being covered by the exemption for transmission and distribution of electricity as such services were essential activities having a direct and close nexus cannot be now permitted to take a U-turn and seek to exclude such services without pointing out any specific change in the nature of the exemptions, except that they are provided under different statutory provisions. In the opinion of this court, the meaning of "transmission and ....
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....transmission and distribution of electricity. As noticed earlier, the respondents have themselves treated such related/ancillary services as part of the main service of transmission and distribution of electricity for the pre-negative list regime. Apart, therefrom, considering this issue independently, reference may be made to certain provisions of the Electricity Act. Sections 43 and 45 of the Electricity Act. 22. Thus, any line which is used for carrying electricity for any purpose as well as any apparatus connected to any such line for the purpose of carrying electricity is mandatorily required to be provided to the consumer by the licensee. Moreover, any plant, equipment, apparatus or appliance or any part thereof used for, or connected with, the generation, transmission, distribution or supply of electricity, except for electric meter and any electrical equipment, apparatus or appliance under the control of a consumer fall within the ambit of electrical plant as defined under section 2(22) of the Electricity Act. Sub-section (2) of section 43 of the Electricity Act casts a duty upon the licensee to provide if required electric plant or electric line for giving electri....
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....ution of electricity. 25. Thus, insofar as the phase relating to the negative list regime is concerned, the services in question would fall within the ambit of bundled services as contemplated under subsection (3) of section 66F of the Finance Act, and would have to be treated in the same manner as the service which gives the bundle its essential character, namely, transmission and distribution of electricity and, would therefore, be exempt from payment of service tax." (emphasis supplied) 28. It is clear from the aforesaid judgment of the Gujarat High Court that the activities that are related/ancillary to transmission and distribution 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. 29. Thus, for all the reasons stated a....
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.... the whole of service tax 32-ST dated 22 June 2010 Exempts the taxable service provided to any person, by a distribution licencee, a distribution 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 requir....
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....nd distributing electricity to their customers. In its judgment in the case of State of Haryana v. Dalmia Dadri Cement Ltd [AIR 1988 S.C. 342], pertaining to the Sales Tax Act it was held by the Hon'ble Apex Court that from a plain reading 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 ac....
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....igam, Purvanchal VidyutVitran Nigam and Shri Ganesh Enterprises cited supra. Shri Ganesh Enterprises v CCE 2014 (2) TMI 436 - CESTAT BANGALORE Among the taxable services 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 semiskilled 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 Fin....
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....nance and repair service etc. to M/s Maharashtra State Electricity Distribution Company Ltd. ... during the period 01.4.2007 to 31.3.2012. 5. We find that by virtue 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 adjudicatin....
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....st, but also during GST regime. 9. It would now merit to examine the individual activities sought to be taxed by the department. The description of the activity as given 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 collectin....
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....vice for transmission of electricity is not leviable to service tax. Therefore, the issue is no longer res-integra. Accordingly, in the present case also the service tax liability in respect of Erection, Commissioning and Installation Service is not sustainable. 7. As regards the issue that the Cenvat credit reversed by the appellant, whether they are liable for interest thereon or otherwise, we find that there is no dispute that the demand of interest was also raised by invoking extended period. As per facts and circumstances, there is no suppression of facts on the part of the appellant therefore, even for the demand of interest, the longer period cannot be invoked. The Hon'ble Supreme Court in the case of Commissioner vs. TVS Whirlpool Limited (supra) held as under :- "The Supreme Court Bench comprising Hon'ble Mr. Justice S.P. Bharucha, Hon'ble Mr. Justice V.N. Khare and Hon'ble Mr. Justice D.P. Mohapatra on 7-10- 1999 dismissed the Civil Appeal No. 8930 of 1997 with C.A. Nos. 7299-7309 of 1997 filed by Commissioner of Customs, Madras. The Civil Appeal Nos. 7299- 7309 of 1997 was filed against the CEGAT Order No. 612/96-SRB, dated 12-4- 1996 an....
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....ecision of the Apex Court in the case of Commissioner of Central Excise v. TVS Whirlpool Ltd.2000 (119) E.L.T. A177 (S.C.) wherein, the Apex Court inter alia has held as follows : - "It is only reasonable that the period of limitation that applies to a claim for the principal amount should also apply to the claim for interest thereon." 3. In this view of the matter, we see no reason to entertain the appeal. The appeal is accordingly dismissed with no order as to costs." The Appellate Tribunal in its impugned order had followed Supreme Court decision in 2000 (119) E.L.T. A177 (S.C.) to hold that it is reasonable to adopt one year period for recovery of interest. Since demand notice is issued on 7-8- 2009, demand for recovery of interest for period prior to July, 2008 will be beyond the period of one year and therefore the same is hit by limitation." 8. In view of the above judgments, the demand of interest for the longer period will not sustain. 9. As per our above discussion on both the issues, demand is not sustainable. As a result, the impugned order is set-aside and the appeals are allowed." (b) In Appeal No. 10713 of 2017 of....
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....r in their own case in the matter of Gujarat Energy Transmission Corporation Limited. Vs. C.C.E & C, Anand of this Bench delivered in Final Order No. 10952/2024 on 26.04.2024. He further seeks to rely upon the decision of Torrent Power Ltd vs. Union of India-2020 (34) GSTL 385 (Guj.) and another Judgment of Final Order No. 10331-10332/2024 dated 06.02.2024. 3. Learned AR while taking us through the decision and finding of the Order-In- Original given by the Commissioner points out that the one of the above decisions were not available for the benefit of adjudicating authority, at the time when decision were given. He also places reliance on the Circular of C.B.E & C. Circular No.34/8/2018-GST dated 01.03.2018. He also points out that the demands were confirmed in accordance with the aforesaid decision of Circular and needs to be sustained being executive fiat of higher authorities. 4. Considered, we find that the learned advocate has relied upon the decisions which are applicable in toto to the issue before us. We also finds that the Hon'ble Gujarat High Court has struck down the circular referred by the Learned AR as not being in accordance with the statutory....