Custom, Excise & Service Tax Tribunal
Shri Ganesh Enterprises vs Commissioner Of Central Excise, ... on 18 December, 2013
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL SOUTH ZONAL BENCH BANGALORE Final Order No .27138 / 2013 Application(s) Involved: ST/Stay/1636/2011 in ST/2659/2011-DB Appeal(s) Involved: ST/2659/2011-DB [Arising out of Order in Original No. 06-2011 dated 20/04/2011 passed by Commissioner of Central Excise , HYDERABAD-III SHRI GANESH ENTERPRISES 18-1828, BESIDES GOVT.SCHOOL, HANUAMANPET, MIRYALAGUDA 508 207, NALGODNA DIST AP Appellant(s) Versus Commissioner of Central Excise, Customs And Service Tax - HYDERABAD-III OPP LB STADIUM ROAD, BASHEERBAGH, HYDERABAD, ANDHRA PRADESH 500004 Respondent(s)
Appearance:
Shri Challa Rambabu, Consultant S. K. Dhanda & Associates, Electra Nilla Near Dayanand Hospital, Begum Bridge, Meerut, Uttar Pradesh 250001 For the Appellant Shri A.K. Nigam, Addl. Commissioner(AR) For the Respondent CORAM:
HON'BLE SHRI G. RAGHURAM, PRESIDENT HON'BLE SHRI B.S.V.MURTHY, TECHNICAL MEMBER Date of Hearing: 18/12/2013 Date of Decision: 18/12/2013 Order Per : JUSTICE G. RAGHURAM At the stage of disposal of the stay application, having regard to the facts and circumstances of this case, we dispose of the appeal with the consent of both sides represented by the learned consultant for the appellant and learned AR for the respondent- Revenue. We do so after waiving the predeposit requirement.
2. Service tax of Rs.1,90,00,002/- besides interest and penalty as specified in the order dt. 20/04/2011, was assessed by the Commissioner of Customs, Central Excise and Service Tax, Hyderabad-II. The petitioner provided a raft of taxable services to the Central Power Distribution Company of Andhra Pradesh and other State distribution companies. Among the taxable services provided were management, maintenance or repair service involving manning and maintenance of sub-stations; erection, commissioning or installation service for erection of electrical lines of different capacities and transport of material from one location to another including - erection of sub-stations and allied services; transport of goods by road for transport of failed/repaired transformers and other material of the distribution companies; rent-a-cab operator service, provided to the distribution companies for transport of their personnel; Business Auxiliary Service by establishing Customer Service Centres on behalf of distribution companies; and manpower recruitment and supply agency service, by supply of semi-skilled labour for attending to maintenance works in the sub-divisions of the distribution companies. The singular defence urged by the appellant before the adjudicating authority was that these services were provided to instrumentalities of the State; no service tax was collected; as and when the service tax component is remitted by the service recipients, the appellant would to remit the service tax; a defence which was fundamentally misconceived and rightly negated by the adjudicating authority.
3. It is however brought to our notice today that the Central Government by Notification No.45/2010-ST dt. 20/07/2010, in exercise of powers conferred by Section 11C of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994, granted immunity from the liability to remit service tax in respect of any taxable service provided in relation to transmission and distribution of electricity, during the period upto 26/02/2010. As consequence of this immunity Notification, the service tax liability of the petitioner for the several taxable services provided to electricity distribution companies of Andhra Pradesh during 01/04/2004 to 30/11/2009, stands eclipsed. On this premise, the appeal requires to be allowed and is accordingly allowed. The impugned adjudication order dt. 20/04/2011 is declared inoperative in the light of Notification No.45/2010-ST dt. 20/07/2010. No costs.
(Order dictated and pronounced in open court) JUSTICE G. RAGHURAM PRESIDENT B.S.V.MURTHY TECHNICAL MEMBER Raja.
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