Service tax not payable on Electricity charges as it is not part of ‘renting of immovable property’ service

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CESTAT, MUMBAI BENCH

Econ Hinjewadi Infrastructure (P.) Ltd.

v.

Commissioner of Central Excise, Pune-III

ORDER NO. S/1210/2012/CSTB/C-I

APPLICATION NO. ST/Stay/1521 of 2012

APPEAL NO. ST/469 of 2012

SEPTEMBER 25, 2012

 

The applicant has contended before the adjudicating authority that supply of electricity is supply of ‘goods’ and the same is exempted as per Notification no. 12/2003-ST wherein it has been clarified that supply of goods shall not form part of taxable service.

The contention of the applicant that electricity is ‘goods’ and the same shall not form part of taxable service is clarified by the Notification no. 12/2003. Therefore, we find that the applicant has made out a prima facie case for 100% waiver of the service tax confirmed and penalty imposed.