TMI Blog2023 (9) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... ty' as provided under Clause 2(s) of the Notification No. 2/2014-S.T. w.e.f. 30-1-2014 - SBPDCL is a 'Government Authority'. Whether the works carried out by the Appellant for SBPDCL are specified as functions entrusted to a Municipality under Article 243W of the Constitution of India? - HELD THAT:- All the services rendered to the 'Government Authority' are not exempted from payment of service tax. Only those services which are entrusted to a Municipality, if carried out by a service provider then such services alone are exempted from service tax - the services undertaken by the Appellant are related to supply of materials and equipments, erection, testing and commissioning of 11KV line, 11/0 433 KV 63KVA D/S/S LT Line and providing 30 service connection including energy meter on TURNKEY basis to the state tube wells under NABARD Phase VIII and works of similar nature in the State of Bihar. The works carried out by the Appellant would qualify under 'Planning for economic and social development' as defended under 12th Schedule to Article 243W of the Constitution of India. The scope of this Entry is wide enough to cover the tube well energization ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds of appeal, the Appellant stated that SBPDCL is a Govt. of Bihar Undertaking and is incorporated under the Companies Act, 1956. The audited financial statement of SBPDCL for FY 2021-22 as available in its website Notice Board (sbpdcl.co.in) Provides the company information as below: South Bihar Power Distribution Company Limited, is a company incorporated under the Companies Act, 1956, applicable in India in July 2012, to which the State Govt. Through the Department of Energy has vested Distribution undertakings existing within the territory of South Bihar (South of Ganga River) of the erstwhile Bihar State Electricity Board in accordance with the Bihar State Electricity Reforms Transfer Scheme, 2012 vide Notification No. 17 dated 30.10.2012. The address of the Company s registered office is Vidyut Bhawan, Bailey Road, Patna 800021. The Company is primarily involved in the distribution of power within the territory of South Bihar (South of Ganga River) of the Bihar State. 3. The Company is subsidiary of Bihar State Power (Holding) Company Limited which holds 100% of shares in the company. Bihar State Power (Holding) Company Limited is charged with the responsibility of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and perused the appeal records. 8. We observe that the two issues to be decided in this appeal are: (i) Whether SBPDCL are a 'Government Authority' or not, as defined in clause 2(s) of the Notification No. 25/2012-ST dated 20.06.2012? (ii) Whether the works carried out by the Appellant for SBPDCL are specified as a function entrusted to a Municipality under Article 243W of the Constitution of India? 9. In order to answer the first question, it is necessary to see the definition of 'Government Authority' and whether the Appellant falls within its ambit. Clause 2(s) defines 'Government Authority' as under: Clause 2(s) - Governmental authority means a Board, or an authority or any other body established with 90% or more participation by way of equity or control by Government and set up by an Act of the Parliament or a State Legislature to carry out any function entrusted to a municipality under Article 243W of the Constitution. The said clause 2(s) have been substituted by Notification No. 2/2014-S.T. w.e.f. 30-1-2014, which is as follows :- In the said notification, in the paragraph 2, for clause(s), the following shall be substitu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PDCL is a 'Government Authority'. 13. The next issue to be decided is whether the works carried out by the Appellant for SBPDCL are specified as functions entrusted to a Municipality under Article 243W of the Constitution of India. We observe that Notification 25/2012-ST dated 20.06.2012 exempts certain services rendered to Government Authorities. The relevant exemption entry No. 12A(a) and Entry No. 25 of Notification No. 25/2012-ST dated 20.06.2012 is reproduced below: 12(A). Services provided to the Government, a local authority or a governmental authority by way of construction , erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of (a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession; 25. Services provided to the Government, a local authority or a Government authority by way of (a) water supply, public health, sanitation conservancy, solid waste management or slump improvement and up-gradation. 14. Thus, we observe that all the services rendered to the 'Government Authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nagement. (g) Fire services. (h) Urban forestry, protection of the environment and promotion of ecological aspects. (i) Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. (j) Slum improvement and upgradation. (k) Urban poverty alleviation. (l) Provision of urban amenities and facilities such as parks, gardens, playgrounds. (m) Promotion of cultural, educational and aesthetic aspects. (n) Burials burial grounds; cremations, cremation grounds; and electric crematoriums. (o) Cattle pounds; prevention of cruelty to animals. (p) Vital statistics including registration of births and deaths. (q) Public amenities including street lighting, parking lots, bus stops and public conveniences. (r) Regulation of slaughter houses and tanneries. 17. From the Work Order, we observe that the services undertaken by the Appellant are related to supply of materials and equipments, erection, testing and commissioning of 11KV line, 11/0 433 KV 63KVA D/S/S LT Line and providing 30 service connection including energy meter on TURNKEY basis to the state tube wells under NABAR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment/ non-levy of duty does not attract extended period. There must be a deliberate default on the part of the Appellant to invoke extended period, which is not there in this case. The conclusion that mere non-payment of duties is not equivalent to collusion or wilful mis-statement or suppression of facts is untenable. Accordingly, we hold that the department has not brought in any evidence to substantiate the allegation of suppression of fact with an intention to evade payment of duty. Accordingly, we hold that the demands confirmed in the impugned order are not sustainable on the ground of limitation also. 20. In view of the above findings, we hold that the Appellant has undertaken works to a 'Government Authority', which are function entrusted to a Municipality under Article 243W of the Constitution of India. Accordingly, we hold that the Appellants are eligible for the exemption provided in Notification 25/2012-ST dated 20.06.2012 and hence the demand confirmed in the impugned order is not sustainable. Since the duty itself is not sustainable, the question of demanding interest and imposing penalty does not arise. Accordingly, we set aside the impugned order on merit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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