Breif Issue :
Facts & Issues Involved:
The petitioner has sought a declaration that, supply of electricity by the petitioner to the occupiers of “Galaxy Mall”, a
commercial complex is not a service exigible to tax under the Finance Act, 1994.
Whether the supply of electricity by the petitioner to the occupiers of “Galaxy Mall”, a commercial complex, is a service exigible to Service Tax under the Finance Act, 1994 (“the Finance Act”).
The petitioner obtains high-tension electric supply from India Power Corporation Ltd. It, in turn supplies electricity to theoccupants of the commercial complex, on low-tension. It collects the money equivalent of the amount of electricity consumed by the occupants on the basis of the sub-meter readings of such occupants. Whether this transaction is exigible to Service Tax or not is the issue that has fallen for consideration in the present writ petition.
Decision:
Thus, it has to be held that, the transaction of the petitioner obtaining high-tension electric supply converting it to low-tension supply, and supplying it to the occupants, raising bills on such occupants and realizing the electricity consumption charges from such occupants, is a service which the petitioner renders and such an activity is exigible to Service Tax under the Finance Act, 1994.
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