Case Law Details
Operational Energy Group India Pvt. Ltd. Vs Commissioner of GST & Central Excise (CESTAT Chennai)
Issue whether service tax is required to be discharged on operational charges by the appellant has already been examined and decided in favour of the appellant by this Bench in the appellant’s own case vide Final Order No. 40104/2019 dated 9.1.2019. This Tribunal at para 4 had stated as follows:-
“4. After hearing both sides, we find that the learned Advocate is correct in his assertion. The issue as to whether activity of production of electricity in power plant would amount to management of immovable property or otherwise has been analyzed and discussed by this Bench in the case of Shapoorji Pallonji Infrastructure (supra) and held in favour of assessee…..”
In the facts and circumstances, CESTAT held that assessee is not liable to pay service tax on the operational charges provided by them to the owners of the power plants and (ii) in the light of (i), imposition of penalty does not arise.
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