TMI Blog2013 (8) TMI 746X X X X Extracts X X X X X X X X Extracts X X X X ..... -stations, transmission towers and installation of meters to record electricity consumption for periodic billing and recovery of charges. M. P. Power Transmission Co. Ltd. vs. CCE Bhopal [2011 (2) TMI 982 - CESTAT, NEW DELHI ] - Revenue demand of service tax on transmission and distribution of electricity was declared unsustainable in view of Notification No. 45/2010 – the purpose of billing the consumer for electricity consumed it ws essential to install the electricity meter having capacity to withstand the load provided to the customer - any activity or service like erection, commissioning and installation of transmission towers and meters as also technical testing and analysis would constitute the activity of transmission and distrib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee established a distribution network for providing connections to consumers within its jurisdiction. The network involves installation, erection, commissioning of transmission towers and connectors for transmitting energy to various consumers for supply of HT LT electricity and installation of meters to measure consumption of monthly energy. The assessee recovers the charges for these services periodically, an area which is also regulated by law. Revenue initiated proceedings against the assessee for recovery of service tax under the taxable head Erection, Commissioning Installation Service, defined in Section 65(39) read with section 65(105)(zzb) of the. The assessee claimed immunity to tax on the basis of Notification No. 45/2010- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of electricity, from the whole of the service tax leviable thereon under section 66 of the Act. This exemption Notification applied prospectively, from the date of its publication in the official Gazette. The Gazette publication was on 22.06.2010. The exemption was issued as a policy choice, to exempt distribution of electricity, a taxable service from the liability to service tax, in larger public interest. Since the exemption notification dated 22.06.2010 was prospective, the period prior to 22.06.2010 was covered by issuing Notification No. 45/2010-ST dt. 20.07.2010, in exercise of powers under section 11C of the Central Excise Act, to cover the period extension exterior to 22.06.2010 (date of exemption notification), by the immunity t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er contentions were urged on behalf of the assessee has were also rejected by the Adjudicating Authority. 5. On true and fair analysis of the Exemption Notification dated 22.06.2010 and the immunity Notification dated 20.07.2010 the conclusion is compelling that all taxable services provided in relation to distribution of electrical energy are exempt from the liability to service tax. The expression in relation to is of wide import and indicates all activities having a direct and proximal nexus with distribution of electrical energy. Distribution of electricity energy cannot be effectively accomplished without installation of sub-stations, transmission towers and installation of meters to record electricity consumption for periodic billin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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