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TMI Blog2025 (5) TMI 646X X X X Extracts X X X X X X X X Extracts X X X X ..... n Original No.32/2010 dated 09.12.2012 (OIO) of the Adjudicating Authority confirming the demand of Service Tax for the period December 2009 to June 2010 being the service tax not paid on the income earned as electricity charges-HT services along with interest thereon and applicable penalty under Section 76 of the Finance Act,1994 (Act). 2. Briefly, facts are that the appellant is registered with the Department as a service provider of Management, Maintenance or Repair Services. The appellant paid electricity charges on behalf of its tenant M/s. BSNL(BSNL). As per the lease deed entered into with BSNL, BSNL is required to pay an amount of two percent as financing and service charges, over and above the actual electricity charges raised in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the impugned OIA. 5. We have heard the rival submissions, perused the appeal records as well as the citations submitted as relied upon. 6. We find that the appellate authority has upheld the impugned order in original placing reliance on Rule 5(1) of the Valuation Rules. We find that the Honourable Supreme Court in UOI vs Intercontinental Consultants and Technocrats Pvt. Ltd., (2018) TIOL 76-SC-ST, affirmed the decision of the Delhi High Court in Intercontinental Consultants & Technocrats Pvt Ltd v UOI, 2013 (29) STR 9 (Del), wherein Rule 5(1) of the Service Tax Valuation Rules, 2006 which provided for inclusion of expenditures or costs incurred by the service provider in the course of providing taxable services, in the value of such taxa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cise Tariff Act; electricity was also covered under Schedule A Sr. No. 20 and charged to 'nil' rate of tax in view of which electricity is goods chargeable to duty under Central Excise Tariff as well as under the State Value Added Tax Act. The electricity therefore would amount to 'sale of goods' and not 'supply of service' and that even Notification No. 12/2003-ST dated 20.06.2003 exempted from service tax any value of goods supplied by service provider to service recipient. 6. The takeaway from the above is that the electricity charges paid by the appellant - assessee on behalf of its tenants could only tantamount to 'service' which cannot be brought under the purview of service tax. Going therefore by the ratio decidendi of the above c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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