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TMI Blog2018 (8) TMI 1685X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Finance Act, 1994. Scrutiny of their balance sheets/ ledgers for the period 2007-08 to 2012 revealed that they paid Service Tax on value of 15% of gross receipts. They had not charged the service tax on the bills issued to M/s MSEDCL nor have recovered the same from them. In some cases said services were provided with material and at other times without material. In terms of notification 1/2006-ST dated 01.03.2006, Respondents were required to pay service tax on 33% of gross receipts in case where services were provided with material and on 100% of the gross receipt where the services were provided purely on labour charge basis. Accordingly a show cause notice demanding differential service tax of Rs. 61,60,288/- (Rupees Sixty One La ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 007 to March 2011 under section 70 of the Finance Act, 1994 read with Rule 7C of the Service Tax Rules, 1994." 3.0 Aggrieved by the order of Commissioner revenue is in appeal on various grounds enumerated below: i. The services related to distribution of electricity were exempted vide Notification No 32/2010-ST dated 22.6.2010 and the Commissioner has erroneously allowed the benefit of said exemption notification. The said notification exempted the taxable service provided by a person authorized to distribute power under Electricity Act, 2003 (36 of 2003), and the respondents was neither a distribution licensee nor a distribution franchisee, nor an authorized person to distribute power under the Electricity Act, 2003 (36 of 2003). ii. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding the services under the category of "Erection Installation & Commissioning" service to Maharashtra State Electricity Distribution Company Limited (MSEDCL), which is a company engaged in distribution of electricity. Vide exemption Notification 11/2010-ST dated 27.02.2010, all services provided by any person to any other person for transmission of electricity were exempted. The text of the Notification is reproduced below: "NTF. NO. 11/2010-ST, DT. 27/02/2010 Regarding exemption to the taxable service provided for distribution of electricity G..S.R. (E) In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as "the said Finance Act"), the Central Government, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lic interest so to do, hereby exempts the taxable service provided to any person, by a distribution licencee, a distribution franchisee, or any other person by whatever name called, authorized to distribute power under the Electricity Act, 2003(36 of 2003), for distribution of electricity, from the whole of service tax leviable thereon under section 66 of the said Finance Act. 2. This notification shall come into force on the date of its publication in the Official Gazette. [F.No. 356/13/2010 - TRU] (K.S.V.V. Prasad) Under Secretary to the Government of India" 5.3 Vide notification 45/2010-ST dated 20/07/2010, the services in respect of which exemption has been given by the Notifications 11/2010-ST and 32/2010-ST were given the be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansmission 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 and distribution of electricity during the aforesaid period. [F. No. 356/13/2010 - TRU ] (Prashant Kumar) Under Secretary to the Government of India 6.0 From the said exemption notifications it is quite evident that all the taxable services provided by any person in relation to the distribution of electricity and the taxable services provided by the distribution company for the distribution of electricity have been exempted from the payment of service tax since inception. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said bench, hence the order of bench in this aspect is subsilento, and for the period beyond 26.2.2010 cannot be taken as binding precedent. In view of the exemption contained in the notification No 11/2010-ST we are of the view that taxable services provided by the respondents to the M/s MSEDCL continue to remain exempted. For availing the benefit of the exemption under notification No 11/2010-ST the service provider need not be a distribution licencee, a distribution franchisee, or any other person by whatever name called, authorized to distribute power under the Electricity Act, 2003(36 of 2003). The said conditions are necessary only in case if the exemption was being allowed under notification No 32/2010-ST. In the appeal filed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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