TaxTMI 
TaxTMI 
2026 (4) TMI 370
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of repairs and installation. Therefore, they are not entitled for benefit of Sec. 66 (D) (K) of the Finance Act, 1994. 4. We find that the said issue has been settled by this Tribunal in the case of Kusum Enterprises Vs. Commissioner of Central Excise and Service Tax, Guwahati-2022 (4) TMI 135 -CESTAT Kolkata wherein this Tribunal observed as under: "11. Heard both sides and perused the records of the case the main argument of the appellant appeared to be that the services undertaken by them are covered by the Serial No. 29 (h) of Exemption Notification 24/2012-ST dated 20.06.2012 and M/s APDCL and CAEDCL are covered under the definition of electricity transmission or distribution utility in terms of Clause 48 of Section 65 B (23) of Finance Act, 1994 and also that the services covered under the negative list of Clause 668 of the Finance Act, 1994, if they are liable to pay service tax M/s APDCL and CAEDCL would also be liable to pay 50% service tax on reversed charged mechanism in terms of Section 66B read with Notification 30/2012- ST dated 20.06.2012. Lastly, he claimed that in terms of Serial No. 29 (h) of Notification 25/2012-ST dated 20.06.2012 is squarely applic....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed by the appellant to APDCL, components mentioned in Sec 66D (k) are not available, such construction is not transmission or distribution service and the appellant was not a transmission or distribution utility as defined in the act. We find that the argument of the learned commissioner is not correct. The department fails to appreciate that the works undertaken by the appellants under contract from APDCL and CAEDCL are not in relation to exempted services provided by them. The word Sub-Contractor is not defined under Service Tax Law. Under the circumstances, one has to take the general meaning assigned to the same. In common understanding, the word 'sub-Contractor', refers to a person who performs a sub function of the main function of the Contractor. Indian Contract Act 1872 too does not define the sub-contractor. Section 2(h) of the Indian Contract Act 1872, defines a contract as an agreement which is enforceable by law. Thus when an agreement is not against the provisions of law it is a contract. All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby exp....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e 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 subsection (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 falling in the negative list and, consequently, the benefit of bundling under Section 66F(3) would not be available. 19. Sub-section (3) of Section 66F of the Finance Act provides for the manner in which a bundled service is to be determined. Clause (a) thereof, which is relevant for the present purpose provides that if various elements of such service are naturally bundled in the ordina....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 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. Subsection (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 cours....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 subsection 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 be determined in the manner provided under subsection (3) of Section 66F of the Finance Act. If the services are naturally bundled in the ordinary course of business, the bundle of services shall be treated as provision of the single service which gives the bundle its essential character and where the services are not naturally bundled in the ordinary course of business, the same is required to be treated as provision of the single service which results in highest liability of service tax. Accordi....