TMI Blog2019 (3) TMI 1955X X X X Extracts X X X X X X X X Extracts X X X X ..... ed load - Security deposits at the time of release of new HT/ EHT connection and for enhancement in sanctioned load - Charges for shifting of service lines and meters etc. - Recovery of damage to material and dismantling charges on expiry of temporary connection - Replacement of Meters, Installation of meter and its subsequent removal in case of Temporary Connections - Supervision charges. HELD THAT:- The issue is squarely covered by Board's Circular 34/8/2018-GST dated 01.03.2018, para 4 of which fully exempts Service by way of transmission or distribution of electricity by an electricity transmission or distribution utility. However, it has also specifically excluded from this exemption, certain other ancillary services which are not directly or closely related to the said service. Thus to determine the taxability of the issues enumerated in the Table-I above, we will be guided by the referred Board's circular. In short, all services which are directly or closely related to generation and distribution of electricity will be completely exempted and any other ancillary service (akin to the ones included in the exclusion clause of the said para 4 of the Board's refer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and UKGST Act ), vide Ruling No-/2018-19 dated 20.11.2018 passed against application made by M/s Uttarakhand Power Corporation Ltd. At the outset, we would like to make it clear that the provisions of both the CGST Act and the UKGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the UKGST Act. BRIEF FACTS OF THE CASE 1. In the instant case the Party, M/s Uttarakhand Power Corporation Ltd., vide their application under sub-section (1) of Section 97 of the CGST/SGST Act, 2017 sought an Advance Ruling on the question of classification and rate of GST on various receipts received by the applicant on the count of distribution of electricity (as per Annexure-B of their application dated 23.08.2018 (received in the office of the Advance Ruling Authority for the State of Uttarakhand on 27.08.2018), the details of which are as under: TABLE-I S.No. Nature of Sums Collected/ Receipt Basis for Collection/ Receipt 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r enhancement /reduction in sanctioned load. UERC (Release of New LT Connections, Enhancement and Reduction of Loads) Regulations, 2013. 14. Security deposits at the time of release of new LT connection and for enhancement in sanctioned load. UERC (Release of New LT Connections, Enhancement and Reduction of Loads) Regulations, 2013. 15. Recovery of cost of burnt meter from the Consumer. Regulation 3.1.5 of UERC (Release of New LT Connections, Enhancement and Reduction of Loads) Regulations, 2013. 16. Registration cum processing fee. Regulation - 4 (2) of the UERC (Release of new HT EHT Connections, Enhancement and Reduction of Loads) Regulations, 2008. 17. Works charges for release of new HT/EHT connection and for enhancement / reduction in sanctioned load. UERC (Release of new HT EHT Connections, Enhancement and Reduction of Loads) Regulations, 2008. 18. Security deposits at the tim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ried by DISCOMS against recovery of charges from consumers under State Electricity Act are exempt from GST? (1) Service by way of transmission or distribution of electricity by an electricity transmission or distribution utility is exempt from GST under notification No. 12/2017- CT (R), Sl. No. 25. The other services such as, - i. Application fee for releasing connection of electricity; ii. Rental Charges against metering equipment; iii. Testing fee for meters/ transformers, capacitors etc.; iv. Labour charges from customers for shifting of meters or shifting of service lines; v. charges for duplicate bill; provided by DISCOMS to consumer are taxable. On perusal of the said circular I observe that the other support services such as, (i) Application fee for releasing connection of electricity (ii) Rental Charges against metering equipment; (iii) Testing fee for meters/ transformers, capacitors etc.; (iv) Labour charges from customers for shifting of meters or shifting of service lines; (v) charges for duplicate bill provided by distribution companies to consumer are taxa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... termed as the service relating to the transmission and distribution of electricity provided by the service provider to the service receiver. Thus, in our considered view such service, which is subject matter of this appeal, would be squarely covered under the exemption provided under Notification referred to above. We may note that similar view was taken by the coordinate Bench of this Tribunal in the matter of M.P. Power Transmission Company Limited v. CCE, Bhopal [2011 (024) STR 0067 (Tri. - Del.)] in relation to interpretation of similar exemption Notification No. 11/2010-S.T., dated 27-2-2010 which is pari materia to the Notification No. 45/2010-S.T., dated 20-7-2010. In view of the discussion above, we do not find any merit in the appeal of the Department which is accordingly dismissed. The appeals filed by the assessee are allowed and the demand confirmed by the impugned order is set aside. RULING:- In light of the aforementioned facts, the Advance Ruling Authority has ruled that the following services provided by UPCL, Dehradun are exempted from GST: 1. Charges for distribution and supply of electricity such as fixed charge, demand charge, energy charge, fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Service by way of transmission or distribution of electricity by an electricity transmission or distribution utility. However, it has also specifically excluded from this exemption, certain other ancillary services which are not directly or closely related to the said service. Thus to determine the taxability of the issues enumerated in the Table-I above, we will be guided by the referred Board's circular. In short, all services which are directly or closely related to generation and distribution of electricity will be completely exempted and any other ancillary service (akin to the ones included in the exclusion clause of the said para 4 of the Board's referred circular, will be taxed at the appropriate prevailing rate. It was pointed out that the said clause of the circular has been struck down by Hon'ble Gujarat High Court, in an identical issue in the matter of Torrent Power Ltd. Vs UOI [Order dated 19.12.2018 in R/Special Civil Application No.5343 of 2018]. However, it has been ascertained that the order has not been accepted by the concerned Commissionerate and a proposal for filing an appeal has already been forwarded to the Board. Accordingly, the said decis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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