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TMI Blog2018 (8) TMI 486X X X X Extracts X X X X X X X X Extracts X X X X ..... ief M/s BSPCL) were engaged in the production of electricity and steam. M/s Steel Authority of India Limited (in brief SAIL) with a view to strengthen its core business of steel manufacturing, transferred its entire business and undertaking of 302 MW power plant having additional steam generation capacity of 660 tonnes/hour at Bokaro Steel Plant to its subsidiary Company, M/s BSPCL for consideration and entered into a Power and Steam Purchase Agreement (PSPA), between M/s BPSCL & M/s SAIL. It was agreed to supply the steam and electricity to M/s SAIL as per their requirement. M/s BPSCL are producing electricity and steam on behalf of M/s SAIL, Bokaro Steel Plant and supplied the same to M/s SAIL on receipt of raw materials either free of co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Power and Steam Purchase Agreement, the supply of coal by SAIL was only a temporary arrangement till the coal is available to the Respondent. The ld.Advocate further submits that to qualify for exclusion, the process must amount to manufacture, and generation of electricity does not amount to "manufacture" and is covered by Entry 84 of List I (Union List) of Schedule VII to the Constitution. It is also the submission of the ld.Advocate that the issue is covered by the decision of the Tribunal in the following cases : (i) CMS (India) Operations & Maintenance Co. P.Ltd. Vs. CCE: 2007 (7) S.T.R. 369 (Tri.-Chennai) ; (ii) NTPC SAIL Power Co.Pvt. Ltd. Vs. CCE, Bolpur: 2012 (277) ELT 221 (Tri.-Kol.). 5. Heard both sides and perused the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this definition, any activity involving manufacture of any goods within the meaning of clause (f) of Section 2 of the Central Excise Act, 1944 is not subject to tax under the head Business Auxiliary Service. It is a settled position that electricity is goods manufactured in the sense envisaged in clause (f) of Section 2 of the Central Excise Act, 1944. The Hon'ble High Court of Orissa in Orient Paper & Industries Ltd. v. Orissa State Electricity Board (supra), had upheld imposition of Central Excise duty on electricity, electricity being manufactured goods as defined in the Central Excise Act '44. Therefore, we find that the argument of the appellants that the services involved are not liable to tax as Business Auxiliary Service has to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the decision of the Tribunal in the case of CMS(I) Operations & Maintenance Co. (cited supra), we hold that the Appellants have manufactured "electricity" which is a manufactured product and have therefore, satisfied the definition of Section 2(f) of the Central Excise Act, 1944. Hence, they are not liable to pay any Service tax under the category of 'Business Auxiliary Service'. Hence, the impugned Order is set aside and the Appeals are allowed." 8. In view of the aforesaid decisions of the Tribunal, we do not find any reason to interfere with the impugned order and the same is hereby sustained. 9. In the result, the appeal filed by the Revenue is accordingly dismissed. (Operative part of the order was pronounced in the open Court.)< ..... X X X X Extracts X X X X X X X X Extracts X X X X
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