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TMI Blog2022 (8) TMI 992X X X X Extracts X X X X X X X X Extracts X X X X ..... ories and erection, commissioning and installation of such towers. It was allotted two separate contracts by various Electricity Distribution Authorities [EDAs]. The first one was for ex-works supply of parts of towers manufactured as per the designs provided by EDAs and the second was for setting up of transmission line which included erection and installation of towers, for which, goods such as conductors, insulators were provided by EDAs. The appellant discharged excise duty and VAT on the sale price of the parts of towers sold to EDAs under the first contract. For the second contract, the appellant was using materials such as concrete, reinforcement steel, nuts, bolts etc. and was discharging its service tax liability under works contract services. 3. The department issued a show cause notice dated 03.05.2012 for the period 01.06.2007 to 31.03.2011 alleging that the value of towers/parts supplied by the appellant under the first contract should have been added to the value of the second contract for determining the service tax liability. It was also alleged that the appellant had artificially split the two contracts to evade the payment of service tax. This show cause notice w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. In support of the contention, learned counsel relied upon the following decisions: (a) Commissioner of Central Excise & Service Tax, Ghaziabad Appellant versus M/s Shiv Shankar Electricals & Contractors [2018 (11) TMI 1642 - CESTAT Allahabad]; (b) M/s Electric Supply Co. Ltd. versus Commissioner of Central Excise, Noida and Vice-Versa [2018 (8) TMI 361 - CESTAT Bangalore]; (c) M/s Kalapatru Power Transmission Ltd. versus C.C.E. & S.T.-Ahmdabad-III [2019 (7) TMI 503 - CESTAT Ahmedabad]; (d) M/s K Ramachandra Rao Transmission & Projects Pvt. Ltd. versus Commissioner of Service Tax, Hyderabad (Vice-Versa); (e) Variegate Projects Pvt. Ltd. versus CST, Hyderabad-ST [2019 (2) TMI 764 - CESTAT Hyderabad]; (f) M/s S.K. Shah versus Commissioner of Central Excise & Service Tax, Kolhapur [2019 (2) TMI 1103 - CESTAT Mumbai]; (g) M/s Ranjit Singh & Company Ltd. versus Principal Commissioner, Central Excise and Service Tax Commissionerate Meerut [2022 (3) TMI 1257 - CESTAT Allahabad]; (h) M/s GEE CEE Metals Pvt. Ltd. versus Commissioner of Central Excise and Service Tax, Meerut (Uttar Pradesh) [2019 (8) TMI 1690 - CESTAT New Delhi]; (i) M/s Deepak Cables (India)Limite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onferred by section 11C of the Central Excise Act, 1944 (1 of 1944), read with section 83 of the said Finance Act, the Central Government hereby directs that the service tax payable on said taxable services relating to transmission 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". "Notification No. 11/2010-S.T. dated 27.02.2010 Exemption to services provided for transmission of electricity 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 Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided to any person, by other person for transmission of electricity, from the whole of service tax leviable thereon under section 66 of the said Finance Act." 13. To appreciate the submissions it would also be appropriate to reproduce the al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exempted retrospectively and therefore no service tax is payable on such services. The further relied upon the judgment in the case of Praveen Electrical Works vs. CCE, Belgaum [2011 (22) S.T.R. 17 (Tri. - Bang.)]. xxxxxxxxxxx D.3 That further, in terms of Notification No. 11/2010-ST dated 27.02.2010 unconditional exemption is granted to services provided for transmission of electricity for the period from 27.02.2010 onwards. The notice further mentioned that CBEC's Circular No. 131/13/2010- S.T., dated 7-12-2010 further clarified that renting of the meter qualifies for exemption under Notification No. 11/2010-ST. Thus, the intention of the government has always been to exempt all the services which are in relation to transmission of electricity. The activity of supply and construction of transmission lines is indispensable for providing the service of transmission of electricity and therefore is integral to the activity of transmission of electricity and is therefore exempt. D.4 The Noticee further submitted that the exemption under Notification No. 45/2010-ST dated 20.07.2010 and Notification No. 11/2010-ST dated 27.02.2010 is an omnibus exemption as the said Notificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave been exempted retrospectively vide Notification No. 11/2010-ST dated 27-2-2010, Notification No. 32/2010-ST dated 22-6-2010 and Notification No. 45/ 2010-ST dated 20-7-2010. xxxxxxxxxxxx 34. It is observed that in order to provide the taxable services of Transmission/Distribution of electricity, a number of other taxable services are used by the EDAs. These taxable services, like 'Works Contract Services' in the present case, are Input services for the EDAs which can be used by them to provide the Output services of Transmission/Distribution of electricity and the EDAs can avail CENVAT credit of Service Tax paid on these Input services, if otherwise admissible. These Input services, which are liable to Service Tax in the hands of other service providers (like KEC, in the present case), would not become exempted under the referred Notifications by virtue of the phrase 'relating to' used in these Notifications because this phrase expands the scope of the taxable service of Transmission/Distribution of electricity but does not completely change its nature and character by bringing entirely different and distinct taxable services within its ambit. Further, the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " 19. The division bench, thereafter, examined the notification dated 20.07.2010 particularly the expression, 'in relation to' and after placing reliance upon the decision of the Tribunal in Kedar construction and Noida Power Company Ltd. conclude that since the expression 'relating to' is very wide in its amplitude and scope, all taxable services rendered in relation to transmission/distribution of electricity would be eligible of the benefit of exemption under notification dated 20.07.2010 for the period upto 27.02.2010. 20. It would, therefore, be useful to reproduce the portion of the decision of the Tribunal in Kedar construction that was relied upon and it is as follows: "5. We notice that out of the total demand confirmed of Rs. 2,04,14,368/-, bulk of the demand of Rs. 1,90,47,124/- pertains to Commercial or Industrial Construction service rendered to Maharashtra State Electricity Transmission Co. Ltd., Maharashtra State Electricity Distribution Co. Ltd., Sunil Hi-Tech, Suraj Constructions, V.B. Bhike, etc. for transmission of electricity. Vide Notification 45/2010-S.T., all taxable services rendered 'in relation to' transmission and distribution of electricity hav ..... X X X X Extracts X X X X X X X X Extracts X X X X
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