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2015 (8) TMI 66 - AT - Service TaxErection, Commissioning or Installation Service - Rural Electrification - Exemption under Notification No.32/2010-ST, dated 22.06.2010 read with Notification No.45/2010-ST - Held that:- 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. We have seen the related contracts entered by the appellant with M/s. UPCL. It is evident from there that the service rendered by the appellant is squarely relating to transmission and distribution of electricity and therefore in the light of the Notification No.45/2010-ST, dated 20.07.2010 no service tax is recoverable in respect thereof. Indeed CESTAT in the case of Noida Power Co. Vs. CCE, Noida [2013 (8) TMI 746 - CESTAT NEW DELHI] has held that "the expression 'in relation to' is of wide import and indicates all activities having direct and proximate nexus with distribution of electrical energy. Distribution of electrical energy cannot be effectively accomplished without installation of sub-station, transmission towers and installation of meters." Indeed similar demands against M.P. Power Transmission Co, Ltd raised by CCE, Bhopal and Pachimanchal Vidut Vitran Nigam Ltd. Raised by CCE, Meerut were set aside by CESTAT in the cases of M.P. Power Transmission Co. Ltd.. Vs. CCE, Bhopal [2011 (2) TMI 982 - CESTAT, NEW DELHI] and Paschimanchal Vidut Vitran Nigam Ltd. Vs. CCE, Meerut- [2012 (8) TMI 688 - CESTAT, NEW DELHI] respectively, in the wake of provisions of Notification No,45/2010-ST, dated 20.07.2010. - impugned demand is not sustainable - Decided in favour of assessee.
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