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2018 (9) TMI 1514 - AT - Service TaxDeclared service or not? - Unscheduled Inter-change charges (UI) - Sub-Section (e) of Section 66E of the Finance Act, 1994 - whether Service Tax liability arises on the UI Charges received by the appellant? - Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act. Held that:- This Declared Service covers those cases where service provider has agreed to take on himself an obligation to refrain from an Act. The UI Charges have been received by the appellant only in those cases where the buyer has drawn more electricity than what was scheduled for him - such an act cannot be considered as agreeing to an obligation to refrain from supply of electricity. The receipt of UI Charges has arisen in connection with transmission of electricity, which has been undertaken by the appellant. It cannot be lost sight of that all components of billing undertaken are in connection with the electricity transmitted and supplied by the appellant. The charges being part of this activity which finds place in the negative list in services, it cannot be said that it amounts to any kind of service. Appeal allowed - decided in favor of appellant.
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