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2022 (3) TMI 1257 - AT - Service TaxValuation of services - value of material supplied by M/s Power Grid to the appellant free of cost for erection commissioning of transmission lines shall form the part of gross value of services provided by the appellant from payment of service tax or not? - services of erection commissioning and installation provided for distribution of electricity is exempt from payment of service tax or not - show cause notice dated 18.10.2016 for the period April 2011 to March 2015 is barred by limitation or not? Whether the value of material supplied by M/s Power Grid to the appellant free of cost for erection commissioning of transmission lines shall form the part of gross value of services provided by the appellant from payment of service tax or not? - HELD THAT:- The issue has been examined by the Hon’ble Apex Court in the case of UNION OF INDIA AND ANR. VERSUS M/S. INTERCONTINENTAL CONSULTANTS AND TECHNOCRATS PVT. LTD. [2018 (3) TMI 357 - SUPREME COURT] where it was held that only with effect from May 14, 2015, by virtue of provisions of Section 67 itself, such reimbursable expenditure or cost would also form part of valuation of taxable services for charging service tax - thus, for the period prior to May 2015 the free supplies of material by the service recipient is not includable in the gross amount of service provided by the service provider i.e. the appellant. Therefore, whole of demand is not sustainable. Whether the services of erection commissioning and installation provided for distribution of electricity is exempt from payment of service tax under Section 66 of the Finance Act, 1994 or not? - HELD THAT:- The said service has been provided by the appellant for distribution of electricity which is exempt from payment of service tax as held by this Tribunal in the case of M/S UP RAJKIYA NIRMAN NIGAM LTD VERSUS COMMISSIONER OF CENTRAL EXCISE, MEERUT-I [2015 (8) TMI 66 - CESTAT NEW DELHI] where it was held that the service tax payable on all services relating to transmission and distribution of electricity provided by the service provider to the service recipient is not required to be paid - thus, the services provided for distribution of power is exempt from payment of service tax. Whether the show cause notice dated 18.10.2016 for the period April 2011 to March 2015 is barred by limitation or not? - HELD THAT:- The appellant has informed to the respondent that they will discharge their service tax liability under Composite Scheme under Works Contract Services and the said activity was known to the respondent during the period of execution of work - the show cause notice issued by invoking extended period of limitation is not sustainable. Accordingly, the whole of demand is barred by limitation. Appeal allowed - decided in favor of appellant.
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