TMI Blog2020 (1) TMI 1431X X X X Extracts X X X X X X X X Extracts X X X X ..... The concept of the Naturally Bundled , used in Section 2 (30) of the CGST Act 2017, lays emphasis on the fact that the different element in a composite supply are integral to the overall supply and if one of the element is removed the nature of supply will be affected. Deposit Work undertaken by appellant is not an integral part of supply of services of transmission or distribution of electricity and exemption given under Entry No. 25 of the exemption notification for services by way of transmission or distribution of electricity by an electricity transmission or distribution utility will not be applicable on applicant - the works regarding extension of electric line, electric plant, commissioning of new sub- station etc. are part and parcel of the activity of Transmission of Electricity . The deposit work undertaken by the appellant is part and parcel of the transmission and distribution of electricity and the same cannot be completed without the said deposit work - the service provided by the appellant are in nature of composite supply in terms of Section 8 of the CGST Act, 2017 and Transmission and distribution of electricity being the principal supply. - Order No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Authority for Advance Ruling, vide Order No. 37 dated 05.08.2019 ruled that: i. The Deposit Work undertaken by applicant is not an integral part of supply of services of transmission or distribution of electricity. ii. The Deposit Work undertaken by applicant is not ancillary to the principal supply of transmission or distribution of electricity. iii. The exemption given under Entry No. 25 of the exemption notification for services by way of transmission or distribution of electricity by an electricity transmission or distribution utility will not be applicable on applicant. iv. The applicant is not eligible to claim input tax credit with regard to undertaking Deposit Works i.e. creating infrastructure for electricity transmission. 5) Being aggrieved with the Order no. 37 dated 05.08.2019 , the appellant filed this appeal application before us. Grounds of appeal submitted by the appellant:- 6) The appellant made the following submissions: 6.1) The only reason cited in the impugned order is that such charges for deposit work are collected as non-tariff charges only from customers, who availed the said service, and not from all customers, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submission already made and also submitted certain citations. DISCUSSION AND FINDING 8) We have gone through the submissions made by the appellant and examined the detailed explanation submitted by them. We observed that the appeal is mainly based upon the following points viz. a. The Deposit Work undertaken has no existence independently and hence, it will qualify to be an ancillary or incidental to the principal supply of transmission services only. Consequently, the supplies are composite in nature and the exemption given to the principal supply will squarely apply on such ancillary activity. b. The Deposit Work undertaken is exempt from payment of GST vide the exemption given to transmission or distribution of electricity by an electricity transmission or distribution utility. c. If the Deposit Work undertaken by the appellant is an independent taxable supply and the exemption given to transmission or distribution of electricity vide Entry No. 25 of the Exemption Notification does not apply to the impugned Deposit Work, then, the appellant will be eligible to claim ITC attributable to such Deposit Work. 9) In this regard the views of the Member (CGST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... smission or distribution of electricity and exemption given under Entry No. 25 of the exemption notification for services by way of transmission or distribution of electricity by an electricity transmission or distribution utility will not be applicable on applicant. 10) Further, the views of the Member (SGST) are as under:- 10.1) Sub Section 1 of Section 43 (Duty to supply on request) of the Electricity Act, 2003, defines that:- Licensee, shall, on an application by the owner or occupier of any premises, give supply of electricity to such premises, within one month after receipt of the application requiring such supply. Provided that where such supply requires extension of distribution mains, or commissioning of new sub-stations, the distribution licensee shall supply the electricity to such premises immediately after such extension or commissioning or within such period as may be specified by the Appropriate Commission. 10.2) Further as per Sub Sec 2 of Section 43 of the Electricity Act :- It shall be the duty of every distribution licensee to provide, if required, electric plant or electric line for giving electric supply to the premises sp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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