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2022 (4) TMI 135 - CESTAT KOLKATAWorks contract services - distribution or transmission of electricity - time limitation covering period 01.07.2012 to 31.03.2014 - 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 66B of the Finance Act, 1994 - extended period of limitation - penalty - HELD THAT:- There is force in the contention of the appellants that the Transmission and Distribution of Electricity” in the hands of “APDCL/CAEDCL vis-a vis such specific customers” is covered under negative list u/s 66D (k) being naturally bundled as per provisions of section 66F (3) of the Finance Act 1994.; all these impugned works contract activities of appellant are essential activities having direct and close nexus with transmission and distribution of electricity would be covered by the exemption and distribution of electricity extended under various 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; moreover, one cannot think of transmission and distribution of electricity without impugned work contract services by the appellant. The learned commissioner has correctly evaluated the status of the appellants and the activities undertaken by them and concluded correctly that the exemption under Entry No 12 of Mega Exemption Notification 25/2012-ST dated 20.06.12 and Entry No 12A substituted by NN.09/2016-ST dated 01.03.2016 is not available to the appellants. However, as we find that the appellants are eligible for exemption under Serial No. 29 (h) of Notification 25/2012-ST dated 20.06.2012, the acceptability or otherwise of other claims becomes superfluous. Time Limitation - HELD THAT:- The appellants have registered themselves and they have not paid any service tax and moreover have been showing nil returns. Therefore, the Department had no occasion to consider the taxability of the service rendered by the appellants. Having suppressed / not disclosed material facts to the Department the appellants cannot take a plea that extended period cannot be invoked - extended period has been rightly invoked - However, as it is found that on merits, the appellants are eligible for exemption under Serial No. 29 (h) of Notification 25/2012-ST dated 20.06.2012, the issue of limitation does not affect the outcome of the case. Penalties - HELD THAT:- The penalty has been imposed correctly for the commission and omission on the part of the appellants. The appeal is partly allowed by way of remand.
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