TaxTMI 
TaxTMI 
2026 (7) TMI 1053
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....r with applicable interest, besides imposition of an equivalent penalty under Section 78 of the Finance Act, 1994. 2. The facts of the case are that the appellant is engaged in the business of fabrication, erection and allied engineering activities involving supply of steel structural components for power and other infrastructure sectors. During the material period spanning Financial Years 2010-11 and 2011-12 (up to June, 2011), the appellant undertook various works in Bhutan as an approved sub-contractor of M/s. Hindustan Construction Co. Ltd. in connection with the Punatsangchu Hydro Electric Project and the Dagachu Hydro Power Project. The scope of work, inter alia, comprised fabrication of pressure shaft steel liners together with their accessories, testing, painting, transportation, erection, alignment and commissioning thereof. The appellant had also undertaken fabrication and supply of tunnelling formwork of different specifications to M/s. Druk Impex, Bhutan for use in hydro-electric power projects. For execution of the aforesaid works, the appellant maintained a fabrication workshop and site office at Hebesa Road, Wangdue Phodrang, Bhutan. 2.1. On the basis of an enq....
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....he appellant pursuant to the work orders executed in Bhutan did not qualify as 'export of service' owing to the non-fulfilment of the condition relating to receipt of consideration in convertible foreign exchange and were, therefore, exigible to Service Tax under the provisions of the Finance Act, 1994. 5.1. Aggrieved by the aforesaid Order-in-Original, the present appeal has been preferred before this Tribunal. The Respondent has also filed their cross objection to the instant appeal preferred by the assessee. 6. The Ld. Counsel appearing for the appellant, while assailing the impugned order, inter alia, advanced the following submissions: - (i) That it is not disputed that the consideration for the services rendered in Bhutan was received either in Bhutanese currency or in Indian currency, both of which do not qualify as "convertible foreign exchange" for the purpose of the Export of Service Rules, 2005. The appellant, therefore, does not press the controversy on the issue of export of service. That the services rendered by the appellant were intrinsically connected with hydro-electric power projects in Bhutan and were meant for and related to the generation and su....
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....al issue which falls for determination is whether the services rendered by the appellant during the material period were exigible to Service Tax or stood exempt by virtue of the exemption notifications viz. Notification No. 11/2010-ST dated 27.02.2010 and Notification No. 45/2010-ST dated 20.07.2010 prevailing during the relevant period. 10. At the outset, it is pertinent to note that the appellant has categorically submitted that the services rendered under the contracts in question were intrinsically connected with and meant for the generation and supply of electricity through hydroelectric power projects in Bhutan. Significantly, the aforesaid factual assertion has not been disputed before us by the Revenue during the course of hearing. On the contrary, a perusal of the Work Orders, as noticed by the adjudicating authority itself in paragraphs 6.10 to 6.13 of the impugned Order-in-Original, unmistakably reveals that the contracts pertained to hydroelectric power projects involving fabrication, erection, testing, painting, transportation, alignment and commissioning of pressure shaft steel liners and allied structural components forming part of such projects. 10.1. As regar....
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....other person (hereinafter called 'the service receiver'), and that all such services were liable to service tax under the said Finance Act, 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; Now, therefore, in exercise of the powers conferred by section 11C of the Central Excise Act, 1944 (1 of 1944), read with section 83 of the said Finance Act, 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 required to be paid in respect of the said taxable services relating to transmission and distribution of electricity during the aforesaid period." 10.3. Upon a conjoint reading of the aforesaid notifications, it becomes manifest that the legislative intent was to exempt taxable services rendered in relation to....