TMI Blog2018 (9) TMI 1514X X X X Extracts X X X X X X X X Extracts X X X X ..... greeing to an obligation to refrain from supply of electricity. The receipt of UI Charges has arisen in connection with transmission of electricity, which has been undertaken by the appellant. It cannot be lost sight of that all components of billing undertaken are in connection with the electricity transmitted and supplied by the appellant. The charges being part of this activity which finds place in the negative list in services, it cannot be said that it amounts to any kind of service. Appeal allowed - decided in favor of appellant. - Appeal No. ST/52038/2018-SMC - A/52943/2018-SM[BR] - Dated:- 12-9-2018 - Mr. V. Padmanabhan, Member (Technical) Sh. Sunil Upadhyay, Advocate Sh. Gaurav Aggarwal, CA for the appellant S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Upadhyay, Ld. Advocate, Shri Gaurav Aggarwal, Ld CA for the appellant as well as Shri P. Juneja, Ld. DR for the Revenue. 5. The arguments advanced on behalf of the appellant are summarized below:- i. The UI charges have been received by the appellant, as per the tariff charges billed in terms of the Central Electricity Regulatory Commission s orders. The UI Charges are only one component of the charges for electricity supplied by the appellant. The activity of transmission of electricity finds place in the negative list under Section 66D(k) which reads as follows:- Transmission or distribution of electricity by an electricity transmission or distribution utility ii. He further submitted that the entire activity of transmis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her Service Tax liability arises on the UI Charges received by the appellant. The view taken by the Revenue authorities is that such charges are covered under the Declared Service covered under Section 66E (e) (supra). This Declared Service covers those cases where service provider has agreed to take on himself an obligation to refrain from an Act. The UI Charges have been received by the appellant only in those cases where the buyer has drawn more electricity than what was scheduled for him. I fail to see how such an act can be considered as agreeing to an obligation to refrain from supply of electricity. 9. The receipt of UI Charges has arisen in connection with transmission of electricity, which has been undertaken by the appellant. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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