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TMI Blog2012 (8) TMI 688X X X X Extracts X X X X X X X X Extracts X X X X ..... d 21.1.2009 whereby jurisdictional Commissioner dropped substantial demand raised vide show-cause notice and confirmed service tax demand of Rs. 16,61,39,016/- and demand confirmed by order-in-original to the tune of Rs. 8,87,859/- against assessee under Section 73(1) and (2) of Finance Act, 1994 and also imposed equal amount of penalties under Section 77 and 78 of Finance Act, 1994 and further penalty of Rs. 1,000/- under Section 77. 2. Briefly put the facts relevant for disposal of this appeal are that the appellant assessee is engaged in the purchase of electricity from Uttar Pradesh Power Corporation Ltd. and transmitting it to various consumers within its jurisdiction. 3. The department pursuant to the intelligence received came to k ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,799/- (which is Rs. 18,48,358/- interest from Bank and Rs. 5,84,841/- discount/ rebate received for timely payments of loans. d. Income from contractors/ suppliers. e. Rental income charges from the staff f. Excess found of physical verification of stores g. Miscellaneous receipts which is for the year 2003-04 is Rs. 10,09,513/-. h. Miscellaneous receipt which is for the year 2004-05 is Rs. 10,87,657/-. On merits the appellant also raised the plea of limitation on the ground that there was no justification for invoking extended period of five years. 6. The jurisdictional Commissioner vide the impugned order dropped substantial portion of the demand raised vide show-cause notice. He, however, confirmed servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibution of electricity. Sh. B.L. Soni, AR submitted that income under the head "other income" detailed in the statement of account of the assessee relates to the services other than transmission and distribution of electricity as such adjudicating authority has wrongly dropped substantial portion of demand raised vide the show cause notice. Learned AR thus argued as to allow the appeal preferred by the department and modify the impugned order to confirm the demand raised in show-cause notice. 11. We have considered the rival submissions and perused the record. 12. The only issue for determination in these appeals is whether or not the services provided by the assessee in respect of erection, commissioning and installation as also technica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transmission and distribution of electricity provided by the service provider to the service receiver, which was not being levied in accordance with the said practice, shall not be required to be paid in respect of the said taxable services relating to transmission ana distribution of electricity during the aforesaid period." 14. On careful reading of the aforesaid notification we find that this notification exempts the services relating to transmission and distribution of electricity provided by the service provider to the service receiver from the incidence of levy of service tax. Admittedly, the assessee is engaged in transmission and distribution of electricity after purchasing the same from U.P. Power Corporation Limited. Since the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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