The West Zonal Bench of Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) has granted a refund of Service Tax to Adani Power.
The Adani Power had set up a power plant for the generation of electricity in SEZ at Mundra but the electricity generated by the said power plants was supplied in the domestic tariff area (DTA). The issue in the appeals was whether the Respondent was entitled to refund as SEZ developers of a specific sector of power.
The CESTAT ruled that even though the assessee was engaged in an authorized operation in SEZ as per approval of BoA, the surplus electricity supplied in DTA as per Rule 47 of SEZ Rules, cannot be treated as a business. There was no material available on record that the assessee has a DTA Unit and cannot be construed that the assessee is carrying out business other than operations in SEZ.
The Bench also observed that mere selling of surplus power in DTA and installing dedicated transmission lines into DTA would not mean that the assessee owns or carries on any business other than the business in SEZ.
Editor’s Note: We have published this Incorrectly. We have rectified the error and We apologise for the same.
Subscribe Taxscan Premium to view the Judgment
