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2014 (11) TMI 336 - AT - Service TaxCommercial or Industrial Construction service - services rendered 'in relation to' transmission and distribution of electricity - exemption from service tax vide Notification No. 45/10-ST dated 20.7.2010 - Held that:- out of the total demand confirmed of ₹ 2,04,14,368/- bulk of the demand of ₹ 1,90,47,124/- pertains to Commercial or Industrial Construction service rendered to Maharashtra State Electricity Transmission Co. Ltd., Maharashtra State Electricity Distribution Co. Ltd., Sunil Hi-Tech, Suraj Constructions, V.B. Bhike, etc. for transmission of electricity. Vide Notification 45/10-ST, all taxable services rendered 'in relation to' transmission and distribution of electricity have been exempted from the purview of service tax. The expression 'relating to' is very wide in its amplitude and scope as held by the Hon'ble Apex Court in Doypack Systems P. Ltd. [1988 (2) TMI 61 - SUPREME COURT OF INDIA]. Therefore, all taxable services rendered in relation to transmission/distribution of electricity would be eligible for the benefit of exemption under the said Notification for the period prior to 27.02.2010. Various activities undertaken by the appellant, though classifiable under Commercial or Industrial Construction prior to 01.06.2007 or under works contract service on or after 01.06.2007, would be eligible for the benefit of exemption as held by this Tribunal in the case of Noida Power Co. Ltd. [2013 (8) TMI 746 - CESTAT NEW DELHI], Pashchimanchal Vidyut Vitran Nigam [2012 (8) TMI 688 - CESTAT, NEW DELHI], Purvanchal Vidyut Vitran Nigam [2012 (10) TMI 104 - CESTAT, NEW DELHI] and Shri Ganesh Enterprises [2014 (2) TMI 436 - CESTAT BANGALORE]. Therefore, the confirmation of service tax demand in respect of the construction, maintenance or repair activities undertaken by the appellant so far as it relates to the transmission/distribution of electricity cannot be sustained in law. in respect of the other activities of the appellant which are not related to either transmission or distribution of electricity, the demands confirmed are upheld along with interest - since the issue relates to interpretation of an exemption Notification and the statutory provisions, imposition of penalties are not warranted - Decided partly in favour of assssee.
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