ITO (TDS), Panchkula V. The Chief Project Manager, Ambala Cantt.

ITA 471/CHANDI/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68569 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 06-11-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 01-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DAYGEESH KUMAR BHATTI
• Keywords: Non-deduction of tax
• Section: 194C; 201(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A CHANDIGARH BEFORE SHRI T.R.SOOD ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO.471 TO 473/CHD/2013 A Y.: 2008-09 TO 2010-11 THE INCOME TAX OFFICER (TDS), VS THE CHIEF PROJECT MANAGER, AAYAKAR BHAWAN, RAILWAY ELECTRIFICATION, SECTOR 2, INDIAN RAILWAYS. PANCHKULA. AMBALA CANTT. PAN : RTKC-02002A (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AKHILESH GUPTA RESPONDENT BY : SHRI DAYGEESH KUMAR BHATTI DATE OF HEARING : 06.11.2013 DATE OF PRONOUNCEMENT : 22.11.2013 O R D E R PER SUSHMA CHOWLA, JM THE BUNCH OF APPEALS BY THE REVENUE ARE DIRECTED AG AINST THE CONSOLIDATED ORDER OF THE CIT(APPEALS) DATED 28.02. 2013 RELATING TO ASSESSMENT YEARS 2008-09 TO 2010-11 AGAINST THE CON SOLIDATED ORDER PASSED UNDER SECTION 201(1) & 201(1A) OF THE INCOME -TAX ACT, 1961 ( 'THE ACT' FOR SHORT). 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME TAX (APPEALS) ROHTAK HAS ERR ED IN LAW IN DELETING THE DEMAND RAISED U/S 201(1) & 201(1 A) OF THE INCOME TAX ACT, 1961 AMOUNTING TO RS. 10,46,360/- FOR THE F.Y. 2007 -08 AND AMOUNTING TO RS. 52,19,780/- AND FOR THE F.Y. 2009-10 AND AMOUNT ING TO RS. 66,870/- FOR THE F.Y. 2008-09 OF THE INCOME TAX ACT 1961. 2. THE LD. COMMISSIONER OF INCOME TAX (APPEALS) RO HTAK HAS ERRED IN LAW IN DELETING THE DEMAND BY FOLLOWING THE ORDER O F HON'BLE IT AT IN THE CASE OF CHIEF PROJECT MANAGER, RAILWAY ELECTRIFICATION, INDIAN RAILWAY, AMBALA 2 CANTT IN ITA NOS. 1069 TO 1075/CHANDI/2009/ DATED 3 0.12.2012 FOR THE F.Y. 2008-09, 2009-10 AND 2010-11. THE ASSESSEE WAS NOT LIABLE TO DEDUCT TDS OUT OF THE AMOUNTS PAID TO THE DISTRIBUTION LICENSE FOR PROVIDING THE INFRASTRUCTURE FOR PROVIDING ELECTRICITY TO THE RAI LWAY TRANSACTION SUB-STATION OF THE ASSESSEE. 3. THAT SECTION 194C IS APPLICABLE TO ALL PAYMENTS WHICH ARE MADE BY ANY PERSON FOR CARRYING OUT ANY WORK IN PURSUANCE O F A CONTRACT AND CENTRAL GOVT. STATE GOVT. AND LOCAL AUTHORITY ARE A LSO COVERED U/S 194C FOR DEDUCTING TAX IF THEY ARE RESPONSIBLE FOR MAKING AN Y PAYMENTS FOR CARRYING OUT ANY WORK IN PURSUANCE OF A CONTRACT. THE SCOPE OF TDS U/S 194C HAS BEEN EXPLAINED BY CBDT IN CIRCULAR NO. 86 DATED 29.05.19 72 (COPY ENCLOSED ANNEXURE- A-IV) AS PER WHICH TDS IS REQUIRED TO BE MADE FROM INCOME COMPRISED IN PAYMENTS MADE BY CENTRAL GOVT. OR ANY STATE GOVT.. LOCAL AUTHORITIES, COMPANIES ETC TO CONTRACTORS ENGAGED F OR CARRYING OUT ANY WORK OR FOR SUPPLYING LABOUR FOR CARRYING OUT SUCH WORK. HON'BLE SUPREME COURT HAS HELD IN THE CASE OF ASSOCIATED CEMENT COMPANY L TD. VS. CIT, 201 ITR 435 (SC) THAT IN SECTION 194C ANY WORK MEANS 'ANY A ND NOT ONLY A WORK CONTRACT'. HON'BLE SUPREME COURT HAS HELD THAT THE 'WORK' ANY AND NOT ONLY A WORK CONTRACT' ENVISAGED IN SECTION 194C (1) HAS A VIDE IMPORT AND COVERS ANY WORK WHICH THE ORGANIZATIONS SPECIFIED IN THE S AID PROVISIONS CAN GET DONE THROUGH A CONTRACTOR UNDER A CONTRACT. THEREFO RE, THERE IS NO DOUBT THAT THE ASSESSEE IS COVERED U/S 194C FOR MAKING TDS ON THE PAYMENTS MADE BY IT FOR ANY WORK CONTRACT. 4 THAT THE PAYMENTS MADE BY THE ASSESSEE TO ELECTRI CITY SUPPLYING AGENCIES/CORPORATION FOR CERTAIN OF INFRASTRUCTURE FOR SUPPLY OF ELECTRICITY ARE COVERED UNDER 'WORK CONTRACT' AND THEREFORE, THE AS SESSEE IS LIABLE TO MAKE TDS ON SUCH PAYMENTS. 3. ALL THE THREE APPEALS RELATING TO THE SAME ASSES SEE ON IDENTICAL ISSUE WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 4. THE LD. AR FOR THE ASSESSEE AT THE OUTSET POINTE D OUT THAT THE ISSUE IN THE PRESENT APPEAL IS SQUARELY COVERED BY THE ORDER OF THE TRIBUNAL IN ASSESSEE'S OWN CASE RELATING TO ASSESS MENT YEAR 2000-01 TO 2005-06 AND 2007-08. 5. THE LD. DR FOR THE REVENUE PLACED RELIANCE ON TH E ORDER OF THE ASSESSING OFFICER. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ISSUE ARISING IN THE PRESENT APPEAL IS IN RELAT ION TO THE DEMAND RAISED UNDER SECTION 201(1) AND INTEREST CHARGED UN DER SECTION 3 201(1A) OF THE ACT FOR NON-DEDUCTION OF TAX AT SOUR CE OUT OF THE PAYMENTS MADE TO THE VARIOUS STATE ELECTRICITY BOAR DS FOR THE CONSTRUCTION OF TRANSMISSION LINES FOR PROVIDING PO WER TO RAILWAY TRANSMISSION SUB-STATIONS. AS PER THE ASSESSING OF FICER, THE SAID PAYMENTS WERE SUBJECT TO DEDUCTION OF TAX AT SOURCE UNDER SECTION 194C OF THE ACT AND IN THE ABSENCE OF THE ASSESSEE HAVING DEDUCTED TAX AT SOURCE, DEMAND WAS RAISED UNDER SECTION 201( 1) OF THE ACT AND INTEREST WAS CHARGED UNDER SECTION 201(1A) OF THE A CT. 7. THE CIT(APPEALS), PLACING RELIANCE ON THE ORDER OF THE TRIBUNAL IN ASSESSEE'S OWN CASE IN ITA NOS. 1069 TO 1075/CH D/2009 RELATING TO ASSESSMENT YEARS 2000-01 TO 2005-06 AND 2007-08, ORDER DATED 30.12.2011 DELETED THE DEMAND RAISED BY THE ASSESS ING OFFICER UNDER SECTION 201(1) OF THE ACT AND ALSO THE INTEREST CHA RGED UNDER SECTION 201(1A) OF THE ACT. 8. WE FIND THAT THE ISSUE HAS BEEN DELIBERATED UPON BY THE TRIBUNAL VIDE ORDER DATED 30.12.2011 WHEREIN VIDE P ARAS 20 TO 42, IT HAS BEEN OBSERVED AS UNDER : 20. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSE D THE RECORD. THE ASSESSEE IS A UNIT UNDER THE HEAD QUARTERS OF C ENTRAL GOVERNMENT ORGANIZATION OF RAILWAY ELECTRIFICATION (CORE) AND THE SAME IS WORKING UNDER THE MINISTRY OF RAILWAYS, RAILWAY BOARD FOR CARRYING OUT ELECTRIFICATION PROJECT OVER INDIAN RAILWAYS. THE ASSESSEE HAD MADE APPLICATION TO VAR IOUS ELECTRICITY BOARDS FOR SUPPLYING ELECTRICITY CONNEC TION BY SETTING UP INFRASTRUCTURE TO RAILWAY TRACTION SUB-STATION. THE ISSUE ARISING IN THE PRESENT APPEAL IS THE PAYMENT MADE B Y THE ASSESSEE TO THE SAID SEBS AND WHETHER THE SAME ARE IN THE NA TURE OF WORKS CONTRACT, MAKING THE ASSESSEE TO BE LIABLE TO DEDUC T TAX AT SOURCE UNDER THE PROVISIONS OF SECTION 194C OF THE ACT. T HE ALTERNATE CONTENTION WITH REGARD TO THE ASSESSEE IS THAT THE PAYMENTS MADE ARE FOR GETTING THE INFRASTRUCTURE ESTABLISHED FOR SUPPLYING ELECTRICITY TO VARIOUS TRACTION SUB-STATION AND THE CHARGES RAISED BY SEB TO ITS CONSUMERS FOR THE ADDITIONAL SERVICES PROVIDED TO IT AND SUCH CHARGES BEING PORTION OF THE COST PAID TO THE CONSUMER WERE NOT IN THE NATURE OF WORKS CONTRACT. IN THE A BSENCE OF ANY AGREEMENT BETWEEN THE LICENSEE I.E. SEB AND CONSUME R I.E. THE 4 ASSESSEE BEFORE US, FURTHER ISSUE RAISED WAS THAT T HE PROVISIONS OF SECTION 194C OF THE ACT WERE NOT ATTRACTED. 21. THE LEARNED A.R. FOR THE ASSESSEE HAD MADE ELAB ORATE SUBMISSIONS IN THIS REGARD AND HAS ALSO FURNISHED O N RECORD TWO PAPER BOOK. THE PAPER BOOK NO.II COMPILES THE CORR ESPONDENCE BETWEEN SEB AND OFFICE OF RAILWAYS FOR SANCTION OF THE LOAD. AT PAGE-1 OF PAPER BOOK-II THE ASSESSEE HAS ENCLOSED A N APPLICATION MADE BY IT FOR SANCTION OF LOAD FOR RAILWAY TRACTIO N SUB-STATION, AMBALA-MORADABAD SECTION. VIDE SAID COMMUNICATION DATED 19.10.1992 THE ASSESSEE CLAIMED THAT THE PROJECT FO R ELECTRIFICATION OF AMBALA-MORADABAD SECTION HAS BEEN SANCTIONED FOR RAILWAY ELECTRIFICATION AND FOR CARRYING OUT THE SAID ACTIV ITY, IT PROPOSED TO HAVE FOUR TRACTION SUB-STATIONS ALONG WITH THE R AILWAY TRACK. THE CONNECTED LOAD AT EACH INDIVIDUAL SUB-STATION W OULD BE 20MVA. A REQUEST WAS MADE TO THE CHAIRMAN, UPSEB, SHAKTI BHAWAN, LUCKNOW FOR SANCTIONING THE LOAD FOR EACH T RACTION SUB- STATION. THE APPLICATION READS AS UNDER : NO. DUL/RE/UMB/ELECT-173 DATED: 19.10.92 CHAIRMAN UPSEB 14, ASHOK MARG SHAKTI BHAWAN LUCKNOW (UP SUB:- SANCTION OF LOAD FOR RAILWAY TRACTION SUB-STA TION AMBALA- MORADABAD SECTION. THE PROJECT FOR ELECTRIFICATION OF AMBALA MORADABAD SECTION HAS BEEN SANCTIONED FOR RAILWAY ELECTRIFICATION AND FOR CARRYING OUT THIS ACTIVITY, RAILWAY PROPOSES TO HAVE FOUR TRACTI ON SUB-STATIONS ALONG WITH THE RAILWAY TRACK. THE DETAIL IS GIVEN A S UNDER: SN RLY. TRACTION SUB-STN. LOCATION AS PER RLY COMM UNICATION POST NO. RUNNING ALONGWITH TRACK. --------------------------------------------------- ---------------------------------- 1. SAHARANPUR : 1590 KM 2. LAKSAR : 1535 KM 3. BUNDKI : 1480 KM 4. KANTH : 1425 KM THE CONNECTED LOAD AT EACH INDIVIDUAL SUB-STATION WILL BE OF 20 MVA. KINDLY SANCTION THE LOAD FOR EACH TRACTION SUB -STATION. WE HAVE APPROACHED SEPARATELY TO CE (TRANSMISSION) / CE (COMMERCIAL) FOR FRAMING THE ESTIMATE FOR THESE LOC ATIONS. THE WORK IS TO START IMMEDIATELY. WE REQUEST FOR AN URGENT ACTI ON. SD/- (B.C. AGGARWAL) CHIEF ELECTRICAL ENGINEER RLY. ELECTRIFICATION AMBALA CANTT 5 COPY TO: 1. CHIEF ENGINEER (TRANSMISSION) U.P.S.E.B. 14, ASHOK MARG SHAKTI BHAWAN, LUCKNOW. 2. CHIEF ENGINEER (COMMERCIAL) UPSEB, SHAKTI BHAWAN, LUCKNOW. 3. CHIEF ENGINEER (TRANSMISSION UNIT) UPSEB MISSION CO MPOUND, S-A, MEERUT. NORTHERN RAILWAY DIVISIONAL RAILWAY MANAGERS OFFICE 22. ANOTHER APPLICATION OF SUPPLY FOR TRACTION SUB- STATION AT KANTH ALONGWITH SITE PLAN FOR TRACTION SUB-STATION AND MINUTES OF MEETING WERE SENT TO THE EXECUTIVE ENGINEER, UPSEB, KANTH. AS PER THE COMMUNICATION PLACED AT PAGE 2 OF THE PAPER BOO K-II, THE ASSESSEE AT PAGES 3 AND 4 HAS ENCLOSED APPLICATION FORM OF ELECTRICITY CONNECTION FOR INDUSTRIAL USE, PRESCRIBED BY UPSEB AND FILLED IN BY THE ASSESSEE. THE ASSESSEE AT PAGE 5 HAS ENCLOSED THE COMMUNICATION TO UPSEB OF FORWARDING INDIVIDUAL APPLICATIONS ON T HE AMBALA- MORADABAD SECTION TO THREE DIFFERENT PLACES. AT PA GE 6 IS ENCLOSED PROVISIONAL ESTIMATE PROPOSED BY UPSEB AT S.116,27, 300/-. AT PAGE 7 OF THE PAPER BOOK IS ENCLOSED INTERNAL COMMUNICATIO N BETWEEN THE DIVISIONAL RAILWAY MANAGER OFFICE AND ASSESSEE FOR THE PAYMENT RAISED BY UPSEB. THE CONTENTS OF THE SAID LETTER AR E AS UNDER : MORADABAD, DATED 9-7-1996 NO.60_ELECT/RE/MB/93 THE CHIEF PROJECT MANAGER, RAILWAY ELECTRIFICATION, AMBALA CANTT. SUB.: 15 MVA LOAD FOR TRACTION SUB-STATION KANTH. REF.: EXECUTIVE ENGINEER ELECTRICITY DISTRIBUTION D IVISION- MORADABADS LETTER NO. 1647 DATED 25.06.96. THE UPSEB AUTHORITIES HAVE DEMANDED AN AMOUNT OF RS . 1,16,27,300.00 VIDE HIS LETTER CITED ABOVE. THEREFO RE, THE ORIGINAL COPY OF UPSEB IS SENT HEREWITH FOR ARRANGING EARLY PAYMENT PLEASE. DA/1 AS ABOVE SD/- DIVL. ELECT. ENGINEER, MORADABAD COPY TO THE EXECUTIVE ENGINEER, ELECTRICITY DISTRIB UTION DIVISION- I, U.P.S.E.B./MORADABAD FOR INFORMATION PLEASE. 23. THEREAFTER MINUTES OF MEETING HELD WITH RAILWAY FOR GIVING POWER SUPPLY TO RAILWAY TRACTION SUB-STATION IN AMB ALA- 6 MORADABAD SECTION IS PLACED AT PAGES 8 AND 9 OF THE PAPER BOOK- II. THE SAID MEETING WAS HELD WITH UPSEB AND RAILW AY ELECTRIFICATION, MINISTRY OF RAILWAYS. PURSUANT TO THE SAID MEETING, TENTATIVE ESTIMATED COST OF FORGIVING SUPP LY TO RAILWAY TRACTION SUB-STATION AT VARIOUS AREAS ON AMBALA-MOR ADABAD SECTION WAS PROPOSED BY UPSEB. THE SAID LETTER IS ENCLOSED AT PAGE 10 OF THE PAPER BOOK-II ALONGWITH DRAWING OF T HE PROPOSED INFRASTRUCTURE TO BE PROVIDED AT PAGES 11 TO 16 OF THE PAPER BOOK- II. IT READS AS UNDER : OFFICE OF THE EXECUTIVE ENGINEER ELECTRICITY TRANS. DIVISION U.P. STATE ELECTY. BOARD 33 KV SUB-STATION NO. 6, ROORKEE. NO. 1856/ETDR/S-22 CKV DATED: 27/5/1996 SUBJECT: TENTATIVE ESTIMATED COST FOR GIVING SUPPLY TO RAILWAY TRACTION POINT AT ROORKEE, NAJIBABAD AND KANTH, NOR THERN RAILWAY STATIONS. THE CHIEF PROJECT MANAGER, RAILWAY ELECTRIFICATION, AMBALA CANTT. DEAR SIR, IN REFERENCE TO YOUR LETTER NO. DUL/RE/UMB/EL/TSS/1 73 DATED 17.05.1996, I AM ENCLOSING HEREWITH THE TENTATIVE E STIMATED COST FOR GIVING SUPPLY FOR RAILWAY TRACTION SUB-STATIONS AT ROORKEE, MAJIBABAD AND KANTH FOR DIFFERENT PROPOSALS AS PER FOLLOWING DETAILS: 1. GIVING 220KV 2 DOUBLE CIRCUIT SUPPLY AT 3452.72 LACS. ROORKEE, NAJIBABAD AND KANTH. 2. GIVING 132KV 2 DOUBLE CIRCUIT SUPPLY AT 3679.23 LACS. ROORKEE, NAJIBABAD AND KANTH. 3. GIVING 220KV 2 SINGLE CIRCUIT SUPPLY AT 2662.07 LACS. ROORKEE, NAJIBABAD AND KANTH. 4. GIVING 132KV 2 SINGLE CIRCUIT SUPPLY AT 3065.19 LACS. ROORKEE, NAJIBABAD AND KANTH. 5. GIVING 220KV 2 SINGLE CIRCUIT SUPPLY AT 3097.84 LACS. ROORKEE AND DOUBLE CIRCUIT SUPPLY AT NAJIBABAD AND KANTH. 6. GIVING 132KV 2 SINGLE CIRCUIT SUPPLY AT 3615.15 LACS. ROORKEE AND DOUBLE CIRCUIT SUPPLY AT NAJIBABAD AND KANTH. THE ESTIMATES, LENGTHS OF 220KV/132KV LINES HAVE BE EN TAKEN AS UNDER: 7 I. 132KV ROORKEE SUB-STATION TO RAILWAY TRACTION POINT AT ROORKEE 4 KM. II. 220KV SUB-STATION NEHTAUR TO RAILWAY TRACTION POINT AT KANTH 45 KM. III. 220KV SUB-STATION NEHTAUR TO RAILWAY TRACTION POINT AT NAJIBABAD 35 KM. THE ABOVE COST IS BASED ON THE RATES AS ON 1.1.96. IT WILL TAKE ABOUT 2 YEARS TO COMPLETE THE WORK FROM THE DATE OF DEPOSIT OF ESTIMATED COST AND THEREFORE THE ABOVE COST MAY VERY. YOU MAY KINDLY GET THE PROPOSAL EXAMINED THAT PROPO SAL SUITES YOU THE BEST AND INFORM TO THIS OFFICE. THE DETAILED ES TIMATE FOR THE PROPOSAL FINALLY DECIDED BY YOU SHALL BE PREPARED A ND SUBMITTED AFTER YOUR DECISION IN THE MATTER. (S.K. KANSAL) EXECUTIVE ENGINEER 24. ANOTHER COMMUNICATION WAS RECEIVED FROM UPSEB I N RESPECT OF ESTIMATES OF GIVING POWER SUPPLY TO KANTH RAILWA Y STATION AND NAJIBABAD RAILWAY STATION. THE SAID COMMUNICATION WAS IN RESPECT OF THE POWER SUPPLY ARRANGEMENT REQUIRED BY RAILWAYS F OR ITS TRACTION SUB-STATION AT KANTH AND NAJIBABAD. THE FINAL ESTI MATION WAS PROVIDED BY LETTER DATED 1.1.2002 IN RESPECT OF THE TRACTION SUB- STATION AT KANTH AND NAJIBABAD WHICH IS ENCLOSED AT PAGE 18 OF THE PAPER BOOK-II AND READS AS UNDER : RAILWAY ELECTRIFICATION AMBALA CANTT. OFFICE OF THE CHIEF PROJECT MANAGER RLY. ELECTRIFICATION. AMBALA CANTT. NO.DUL/RE/UMB/173-II DATE: 01.01.2002 DY. GENERAL MANAGER, UTTAR PRADESH POWER CORPORATION LTD., MORADABAD. SUB.: THE DEPOSIT ESTIMATE FOR 132 KV POWER SUPPLY OF TRACTION SUB STATION AT KANTH & NAZIBABAD. REF.: YOUR LETTER NO. 6118 ETC(M)/DS-27/RAILWAY TRA CTION DATED 21.12.2001. THE ESTIMATES FOR GIVING POWER SUPPLY TO KANTH AND NAZIBABAD RAILWAY TRACTION SUB STATION HAVE BEEN RE CEIVED IN THIS OFFICE VIDE YOUR LETTER UNDER REFERENCE. TH ESE ESTIMATES HAVE BEEN EXAMINED IN THIS OFFICE. IT HAS BEEN FOUND THT SUPERVISION CHARGES @25% ARE ON THE HIGHER SIDE . THE SIMILAR TYPE OF ESTIMATE FOR 220 KV POWER SUPPLY FO R RAILWAY TRACTION SUBSTATION AT ROORKEE WAS SUBMITTED BY UTT AR PRADESH POWER CORPN. LTD., ROORKEE AND IN THAT ESTI MATE THE 8 SUPERVISION CHARGES WERE CHARGED @ 15%. IT IS REQUE STED TO LOOK INTO THE MATTER AND REVISE THE ESTIMATES FOR K ANTH & NAZIBABAD ACCORDINGLY. FURTHER, AS DISCUSSED WE THE VARIOUS MEETINGS IT IS TO INFORM YOU THAT PSEB CHARGING RAILWAYS SUPERVISION CHARGE S @ 12.5% IN THEIR VARIOUS ESTIMATES SUBMITTED TO RAILW AY FOR SIMILAR TYPE OF WORKS. A LETTER OF PSEB IN THIS REG ARD IS ENCLOSED FOR YOUR REFERENCE. IT IS REQUESTED THAT U PPCL MAY FOLLOW THE SAME PRACTICE AS THE PSEB FOR THE SIMILA R TYPE OF WORKS. (MUKESH) FOR CHIEF PROJECT MANAGER, RLY ELECTRIFICATION, AMBALA CANTT. 25. AT PAGES 19 TO 21 OF THE PAPER BOOK-II IS THE S ANCTION OF LOAD OF 5KV TO THE ASSESSEE. AT PAGE 22 IS ENCLOSE D LETTER ASKING THE ASSESSEE TO DEPOSIT RS.336.77 LACS IN RESPECT O F THE POWER SUPPLY ARRANGEMENT REQUIRED BY RAILWAYS FOR TRACTIO N SUB-STATION AT KANTH. THE SAID COMMUNICATION IS PLACED AT PAGE 22 OF THE PAPER BOOK-II AND READS AS UNDER : OFFICE OF THE EXECUTIVE ENGINEER ELECTRICITY TRANSMISSION DIVISION BIJNOR NO. 24-ETDBJ/RLY.TRACTION DATED 4/01/2002 SUBJECT: POWER SUPPLY ARRANGEMENT REQUIRED BY RAILW AYS FOR TRACTION SUB-STATION AT KANTH. CHIEF PROJECT MANAGER, RAILWAY ELECTRIFICATION, AMBALA CANTT. KINDLY REFER TO LETTER NO.6118-ETC(M)/DS-27/RLY. T RACTION DATED 21.12.2001 FROM DEPUTY GENERAL MANAGER, ELECT Y. TRANSM. CIRCLE, MORADABAD ADDRESSED TO YOU AND COPY ENDORSE D TO THE UNDERSIGNED VIDE WHICH A COPY OF ESTIMATE WAS SENT TO YOU. IN THIS REGARD YOU ARE REQUESTED TO KINDLY DEPOSIT A SUM OF RS. 336.77 LACS BY A/C PAYEE DRAFT IN THE NAME OF E XECUTIVE ENGINEER, ELECTY. TRANSMISSION DIVISION, BIJNOR DRA WN AT BIJNOR. (YOGESHWAR SHARMA) EXECUTIVE ENGINEER NO. -ETDBJ/OF DATE. COPY FORWARDED TO THE DEPUTY GENERAL MANAGER, ELEC TY. TRANS. CIRCLE, UPPCL, MAJOLA-MORADABAD FOR HIS KIND INFORMATION. 9 (YOGESHWAR SHARMA) EXECUTIVE ENGINEER 26. AT PAGE 23 OF THE PAPER BOOK-II IS ENCLOSED REV ISED ESTIMATE FOR TRACTION SUB-STATION AT KANTH AND NAJIBABAD COMMUNI CATED BY UPSEB TO THE ASSESSEE BEFORE US, WHICH READS AS UNDER : OFFICE OF THE DY. GENERAL MANAGER ELECTRICITY TRANSMISSION CIRCLE U.P. POWER CORPORATION LIMITED MORADABAD NO. 793-ETC(M)/DS-27/RAILWAY TRACTION DATED 18/02/2002 SUBJECT: REVISED ESTIMATES OF POWER SUPPLY ARRANGEM ENT REQUIRED BY RAILWAYS FOR TRACTION SUB-STATION AT NAJIBABAD AND KANTH ALONGWITH ASSOCIATED LINES.. CHIEF PROJECT MANAGER, RAILWAY ELECTRIFICATION, AMBALA CANTT., AMBALA. KINDLY REFER TO LETTER NO.DUL/RE/UMB/173-PT-II DAT ED 16.1.2002 ON THE ABOVE NOTED SUBJECT. KINDLY FIND ENCLOSED HEREWITH A COPY OF THE FOLLOW ING SANCTIONED/REVISED ESTIMATES FOR YOUR KIND INFORMAT ION AND NECESSARY ACTION. 1. ESTIMATE FOR GIVING POWER SUPPLY TO RAILWAY TRACTIO N S/S AT NAJIBABAD ALONGWITH ASSOCIATED LINE AMOUNTING TO RS. 458.60 LACS. 2. ESTIMATE FOR GIVING POWER SUPPLY TO RAILWAY TRACTIO N S/S AT KANTH ALONGWITH ASSOCIATED LINE AMOUNTING TO RS. 273.64 LACS. 3. ESTIMATE FOR GIVING POWER SUPPLY TO RAILWAY TRACTIO N S/S AT NAGINA ALONGWITH ASSOCIATED LINE AMOUNTING TO RS . 227.40 LACS AS DESIRED BY RAILWAY G.M.(TD) UPPCL, LUCKNOW. ENCL. AS ABOVE. (K.K. GARG) DY. GENERAL MANAGER NO. ETC(M) OF DATE/ COPY TO THE FOLLOWING FOR INFORMATION AND NECES SARY ACTION:- 1. GENERAL MANAGER (TW), H-2, SHASTRI NAGAR, MEERUT. 10 2. GENERAL MANAGER (TD), 11 TH FLOOR, SHAKTI BHAWAN EXTN. UPPCL, LUCKNOW 3. EXECUTIVE ENGINEER, ELECTY. TRANS. DIVISION, UPPCL, BIJNORE. (K.K. GARG) DY. GENERAL MANAGER 27. IN THE SAID COMMUNICATION IS ALSO ANNEXED REPO RT IN WHICH IT HAS BEEN STATED THAT THE ESTIMATE WAS FOR GIVING 12.5 M VA LOAD AT 132KV VOLTAGE TO NORTHERN RAILWAY AT NAJIBABAD RAILWAY ST ATION FOR TRACTION PURPOSES. THE ESTIMATE ALSO COVERED CONSTRUCTION O F 35 KM. 132KV 2 PLACE S.C. LINE ON D.C. TOWER FROM 220KV S/S, NEHTA UR TO NAJIBABAD RAILWAY STATION AND CONSTRUCTION OF 1 NO. 132KV BAY AT 220KV S/S, NEHTAUR. THE AFORESAID ESTIMATE WAS SUBJECT TO REV ISION AFTER THE ACT ROUTS SURVEY AND PROFIOING OF THE 132KV LINE. THE SAID REPORT IS PLACED AT PAGES 25 TO 29 OF THE PAPER BOOK-II. SIMILAR RE PORT IN RESPECT OF TRACTION SUB-STATION AT KANTH IS ENCLOSED AT PAGES 32 TO 37 OF THE PAPER BOOK-II. AT PAGE 38 IS ENCLOSED A COMMUNICATION OF CORE APPROVING THE PAYMENT TO UPSEB IN RESPECT OF TRACTION SUB-STA TION AT NAJIBABAD AND KANTH STATIONS, WHICH READS AS UNDER : MINISTRY OF RAILWAYS CENTRAL ORGANISATION RAILWAY ELECTRIFICATION ALLAHABAD OFFICE OF THE CHIEF ELECTRICAL ENGINEER, (HEAD QUARTERS OFFICE) CORE/ALLAHABAD. REF. NO. NO. ELCORE/PS/03/PT.II/02/2002 DATED: 25.2.2002 CHIEF PROJECT MANAGER RLY. ELECTRIFICATION AMBALA. SUB.: PAYMENT FOR PROVIDING 132KV POWER SUPPLY FOR TRACTION SUB-STATION AT NAJIBABAD AND KANTH. REF.: YOUR LETTER NO. DUL/RE/UMB/ELECT./PT.II, DATE D 19.2.2002. YOU HAVE SUBMITTED THE REVISED ESTIMATES FOR PROVI DING POWER SUPPLY AT 132KV TO NAJIBABAD TRACTION SUB-STATION A MOUNTING TO RS. 458.60 LACS AND RS. 273.64 LACS FOR KANTH TRACT ION SUB-STATION, VIDE YOUR LETTER UNDER REFERENCE. GM/CORE HAS APPROVED THE PAYMENT TO UPPCL AS UNDER :- I) FOR NAJIBABAD TSS RS. 458.60 LACS II) FOR KANTH/TSS RS. 273.64 LACS TOTAL RS. 732.24 LACS 11 PLEASE MAKE THE ARRANGEMENTS FOR ABOVE PAYMENTS TO UPPCL AND PHOTOCOPY OF THE RECEIPT OF PAYMENT SHOULD BE S UBMITTED TO THIS OFFICE. (GURDEV SINGH) FOR CHIEF ELECTRICAL ENGINEER CORE/ALLAHABAD 28. THEREAFTER PAYMENT WAS MADE AS PER THE LETTER O F THE ASSESSEE PLACED AT PAGES 39 AND 40 OF THE PAPER BOOK-II. PU RSUANT TO THE ABOVE SAID PAYMENT, THE LOAD WAS RELEASED AS PER THE COM MUNICATION PLACED AT PAGES 41 AND 42 OF THE PAPER BOOK-II. AT PAGES 43 IS ENCLOSED RELEASE OF PAYMENT FOR 5MVA LOAD FOR RAILWAY TRACTION SUB-S TATION AT KANTH. 29. AT PAGES 44 OF THE PAPER BOOK-II IS PLACED AGR EEMENT FOR SUPPLY OF POWER TO RAILWAY FOR TRACK ELECTRIFICATION BETWE EN DISTRIBUTION COMPANY AND RAILWAYS I.E. THE CONSUMER. PREAMBLE O F THE SAID AGREEMENT EXECUTED ON 12.7.2010 READS AS UNDER : AGREEMENT FOR SUPPLY OF POWER TO RAILWAY FOR TRACK ELECTRIFICATION (TRACTION LINE) IN SAHARANPUR-MORADABAD SECTION OF NORTHERN RAILWAY AT KANTH 30. THE AGREEMENT REFERS TO THE DISTRIBUTION COMPAN Y AS THE LICENSEE OF THE ONE PART AND THE ASSESSEE BEFORE US AS THE CONSUMER OF THE OTHER PART. THE PARTIES AGREED TO CERTAIN TERMS AND COND ITIONS AND AS PER THE PREAMBLE, CLAUSES-1 & 2 PROVIDE AS UNDER : 1. THE LICENSEE IS, INTER-ALIA, ENGAGED IN BUSINESS OF SUPPLYING ELECTRICITY AND HAS BEEN GRANTED A LICENSE UNDER TH E INDIAN ELECTRICITY! ACT -1910 AND. IS PRESENTLY A DEEMED L ICENSEE UNDER SEC-LION 14, 1 PROVISO OF THE 'ELECTRICITY AC T 2003 (HEREIN AFTER REFERRED TO AS THE ACT) FOR DISTRIBUT ION AND/OR RETAIL SUPPLY AND/OR BULK SUPPLY OF ENERGY TO VARIO US CONSUMERS WITHIN ITS LICENSED AREA. 2 THE CONSUMER HAS VIDE APPLICATION DATED 03.01. 02 APPLIED TO THE LICENSEE FOR/PROCURING SUPPLY OF ENERGY FOR ELE CTRICAL INSTALLATION (FOR A LOAD OF 5MVA KW/BHP/KVA) [HEREI N AFTER REFERRED TO AS 'CONTRACTUAL LOAD'] AT ITS PREMISES SITUATE KANTH RAILWAY TSS (HEREINAFTER REFERRED TO AS 'THE SAID PREMISES'] IN, CONNECTION WITH FOR THE PURP OSE RAILWAY ELECTRIC TRACTION. 31. THE PARTIES THEREAFTER AGREED TO CERTAIN TERMS AND AS PER CLAUSE-1 THE AGREEMENT SHALL BE EFFECTIVE FOR MINIMUM PERIOD OF TWO YEARS FROM THE DATE OF COMMENCEMENT OF SUPPLY BY THE LICENSEE TO THE CONSUMER. THE DUTY OF THE CONSUMER IS TO PAY TO THE LICENSEE ALL CHARGES AS PROVIDED FOR IN THE TARIFF SCHEDULE IN FORCE OF U.P . ELECTRICITY REGULATORY COMMISSION INCLUDING ANY OTHER ADDITIONAL CHARGES P AYABLE BY THE CONSUMER. IN ADDITION, THE CONSUMER IS TO PAY OTHE R STATUTORY LEVIES. 32. AS PER CLAUSE 3 (I) THE CONSUMER I.E. THE ASSES SEE BEFORE US AGREES TO ABIDE BY ALL TERMS AND CONDITIONS OF THE ELECTRI CITY SUPPLY CODE 2005. THE SAID CLAUSE READS AS UNDER : 12 3. THE CONSUMER HEREBY UNDERTAKES, REPR.ESENTS,ASSU RES, WARRANTS AGREES AND CONVENANTS WITH THE LICENSEE AS FOLLOWS: I CONSUMER SHALL ABIDE AND BE BOUNDED BY ALL THE TE RMS AND CONDITIONS OF THE ELECTRICITY SUPPLY CODE-2005, (HEREINAFTER REFE RRED TO AS; THE CODE') APPROVED BY THE COMMISSION, AND THE AMENDM ENTS / REVISIONS THERETO, AND THE PROVISIONS OF THE ACT TOGETHER WITH THE RULES FRAMED UNDER THE ; ACT AND .INDIAN ELECTRICITY RULES 1956 INCLUDIN G ANY MODIFICATIONS THEREOF IN SO FAR AS THEY ARE APPLIC ABLE TO THE CONSUMER. CLAUSE 3(IV) READS AS UNDER : IV CONSUMER SHALL ENSURE THAT THE METER, METER BOAR DS, SERVICE MAINS, MCB/CB, LOAD LIMITED ETC ARE UNDER NO CIRCUM STANCE HANDLED OR REMOVED BY ANY ONE OTHER THAN AN AUTHORI ZED EMPLOYEE/REPRESENTATIVE OF THE LICENSEE. THE SEALS, WHICH ARE FIXED ON THE METERS/METERING EQUIPMENT, LOAD LIMITERS AND TH E LICENSEE'S APPARATUS MUST ON NO ACCOUNT BE TEMPERED, DAMAGED OR BROKEN. THE : RESPONSIBILITY FOR SAFE CUSTODY OF LICENSEE'S EQUIPMENT AND SEATS AND METER/METERING EQUIPMENT WITHIN THE CONSUMER'S PREMISES SHALL BE O N THE CONSUMER. IN THE EVENT OF ANY DAMAGE CAUSED TO THE LICENSEE'S EQUIPM ENT IN THE CONSUMER'S PREMISES BY REASON OF ANY ACT, NEGLECT OR DEFAULT B Y THE CONSUMER OR ITS REPRESENTATIVE, THE COSTS THEREOF AS CLAIMED BY THE LICENSEE SHALL BE PAYABLE BY THE CONSUMER. 33. AS PER CLAUSE 3(IV), THE CONSUMER IS TO ENSURE THAT THE METER BOARDS, SERVICES MAINS, MCB, CB, LOAD LIMIT ETC. AR E UNDER NO CIRCUMSTANCES HANDLED OR REMOVED BY ANY OTHER THAN AN AUTHORIZED EMPLOYEE/REPRESENTATIVE OF THE LICENSEES. UNDER TH E SAID CLAUSE IT IS ALSO PROVIDED THAT THE RESPONSIBILITY FOR SAFE CUST ODY OF LICENSEES EQUIPMENT AND SEALS AND METER/METERING EQUIPMENT WI THIN THE CONSUMERS PREMISES SHALL BE ON THE CONSUMER. AND IN THE EVENT OF ANY DAMAGE CAUSED TO THE LICENSEES EQUIPMENT IN THE PR EMISES OF THE CONSUMER, THE COST THEREOF SHALL BE MET WITH BY THE CONSUMER. UNDER CLAUSE 4 IS PROVIDED THE NOTICES FOR CONSUMPTION TO BE ISSUED BY THE LICENSEE TO THE CONSUMER AND THE PAYMENTS BY THE CO NSUMER, WHICH READS AS UNDER : 4(B) HOWEVER, THE LICENSEE SHALL NOT BE REQUIRED T O ISSUE ANY SEPARATE NOTICE FOR PAYMENT OF MONTHLY ELECTRICITY CONSUMPTION BILLS AND SUCH BILL SHALL BE DEEMED TO BE A BILL C UM NOTICE FOR PAYMENT OF THE AMOUNTS MENTIONED THEREIN. 34. CLAUSE 6 OF THE AGREEMENT READS AS UNDER : 6 IF THE CONSUMER AFTER EXECUTION OF DECLARATION/AGRE EMENT REDUCES OR INCREASES HIS LOAD OR CHARGES THE PURPOSE OF USE OR SHIFT HIS CONNECTION, HE SHALL HAVE TO EXECUTE A FRESH DECLARATION/AGREEM ENT, WHICH WILL BE VALID FOR TWO YEAR LIKE THE AGREEMENT/EXECUTED AT T HE TIME OF NEW CONNECTION. HOWEVER ANY RELIEF/CONCESSION PROVIDED IN THE RATE SCHEDULE/ANY ORDER OF COMMISSION DISCOM AS ADMISSI BLE TO NEW CONCESSION SHALL NOT BE ADMISSIBLE ON EXECUTION OF THE FRESH AGREEMENT/DECLARATION DUE TO CHANGE IN PREMISES/RED UCTION OF LOAD AS ABOVE.. 35. UNDER CLAUSE 8 OF THE AGREEMENT IT IS PROVIDED THAT THE AGREEMENT SHALL BE GOVERNED BY THE ELECTRICITY ACT 2003 ALONG WITH ITS AMENDMENT WHICH PROVIDES AS UNDER : 13 PROVIDED THAT 'IF THE QUESTION DISPUTE OR DIFFERENC E RELATES TO OR CONCERNS ANY DUES CHARGEABLE TO THE CONSUMER IN TER MS OF THIS AGREEMENT NO REFERENCE TO THE ARBITRATION SHALL AT THE INSTANCE OF THE CONSUMER; BE MADE TILL THE CONSUMER HAS DEPOSITED W ITH THE LICENSEE THE AMOUNT OF DUES IN DISPUTE, IN CASE/ BANK -DRAFT . THIS AGREEMENT SHALL BE GOVERNED BY THE ELECTRICIT Y ACT 2003 WITH ALL ITS ARRANGEMENTS, CARIOUS OTHER LAWS OF INDIA FOR T HE TIME BEING IN FORCE, BUT NOT LIMITED TO CARIOUS REGULATION OF UPE RC, AS APPLICABLE TO THE STATE OF U.P. AND SHALL BE SUBJECT TO THE JU RISDICTION OF THE COURT SUBORDINATE OF HIGH COURT OF JUDICATURE OF AL LAHABAD. 36. AS PER CLAUSE 10 IT IS ACCEPTED THAT THE CONSUM ER HAD DEPOSITED SYSTEM LOADING CHARGES, FIXED CHARGES AND METER SECURITY TOTALING RS.124.75 LACS VIDE SEPARATE RECE IPTS. 37. THE INDIAN ELECTRICITY ACT 2003 IS A STATUTE PA SSED BY THE PARLIAMENT. UNDER THE SAID ACT, A STATUTORY OBLIGA TION IS LAID DOWN TOWARDS THE CONSUMER FOR SUPPLY OF ELECTRICITY BY THE LICENSEE APPOINTED FOR TRANSMITTING AND SUPPLYING E LECTRICITY. AS PER SECTION 12 OF THE ELECTRICITY ACT, 2003 NO PERS ON SHALL TRANSMIT THE ELECTRICITY OR DISTRIBUTE THE ELECTRICITY OR UN DERTAKE TRADING IN ELECTRICITY UNLESS HE IS AUTHORIZED TO DO SO BY A L ICENCE ISSUED UNDER SECTION 14 OR IS EXEMPT UNDER SECTION 13. UN DER SECTION 13 THE APPROPRIATE COMMISSION IN ACCORDANCE WITH THE N ATIONAL POLICY FORMULATED AND IN THE PUBLIC INTEREST, DIRECT THAT THE PROVISIONS OF SECTION 12 SHALL NOT APPLY TO ANY LOCAL PANCHAYAT, USERS ASSOCIATION, CO-OPERATIVE SOCIETIES, NON-GOVERNMENT AL ORGANIZATIONS OR FRANCHISEES. UNDER SECTION 14 OF THE ELECTRICITY ACT, THE APPROPRIATE COMMISSION MAY GRANT LICENCE T O ANY PERSON TO TRANSMIT ELECTRICITY AS A TRANSMISSION LICENSEE, OR TO DISTRIBUTE ELECTRICITY AS A DISTRIBUTOR LICENSEE, OR TO UNDERT AKE TRADING IN ELECTRICITY AS A ELECTRICITY TRADER, IN ANY AREA AS MAY BE SPECIFIED IN THE LICENCE. THE SAID LICENCE IS TO BE GRANTED ON AN APPLICATION MADE BY SUCH PERSON UNDER SECTION 15 OF THE ELECTRI CITY ACT. SUCH PERSONS ARE CALLED THE LICENSEES WHO TRANSMIT ELECT RICITY, DISTRIBUTE ELECTRICITY OR TRADE ELECTRICITY. PART VI OF THE ELECTRICITY ACT LAYS DOWN PROVISIONS WITH RESPECT T O DISTRIBUTION LICENSEES. UNDER SECTION 42 ARE ENLISTED THE DUTIES OF DISTRIBUTION LICENSEES AND OPEN ACCESS. AS PER THE SAID SECTION IT SHALL BE THE DUTY DISTRIBUTION LICENSEE TO DEVELOP AND MAINTAIN AN EFFICIENT COORDINATED AND ECONOMICAL DISTRIBUTION SYSTEM IN T HE AREA OF ITS SUPPLY AND TO SUPPLY ELECTRICITY IN ACCORDANCE WITH THE PROVISIONS OF ACT. SECTION 43 OF THE ELECTRICITY ACT LAYS DOW N THE DUTY TO SUPPLY ELECTRICITY ON REQUEST AND READS AS UNDER : 43. DUTY TO SUPPLY ON REQUEST:- SAVE AS OTHERWISE PROVIDED IN THIS ACT, EVERY DISTRIBUTION] LICENSEE, SHALL, ON AN APPLICATION BY THE OWNER OR OCCUPIER OF ANY PREMISE S, GIVE SUPPLY OF ELECTRICITY TO SUCH PREMISES, WITHIN ONE MONTH AFTER RECEIPT OF THE APPLICATION REQUIRING SUCH SUPPLY: PROVIDED THAT WHERE SUCH SUPPLY REQUIRES EXTENSION OF DISTRIBUTION MAINS, OR COMMISSIONING OF NEW SUB-STA TIONS, THE DISTRIBUTION LICENSEE SHALL SUPPLY THE ELECTRICITY TO SUCH PREMISES IMMEDIATELY AFTER SUCH EXTENSION OR COMMIS SIONING OR WITHIN SUCH PERIOD AS MAY BE SPECIFIED BY THE AP PROPRIATE COMMISSION: 14 PROVIDED FURTHER THAT IN CASE OF A VILLAGE OR HAMLE T OR AREA WHEREIN NO PROVISION FOR SUPPLY OF ELECTRICITY EXIS TS, THE APPROPRIATE COMMISSION MAY EXTEND THE SAID PERIOD A S IT MAY CONSIDER NECESSARY FOR ELECTRIFICATION OF SUCH VILL AGE OR HAMLET OR AREA. [EXPLANATION.FOR THE PURPOSES OF THIS SUB-SECTION, 'APPLICATION' MEANS THE APPLICATION COMPLETE IN ALL RESPECTS IN THE APPROPRIATE FORM, AS REQUIRED BY THE DISTRIB UTION LICENSEE, ALONG WITH DOCUMENTS SNOWING PAYMENT OF N ECESSARY CHARGES AND OTHER COMPLIANCES:] (2) IT SHALL BE THE DUTY OF EVERY DISTRIBUTION LICE NSEE TO PROVIDE, IF REQUIRED, ELECTRIC PLANT OR ELECTRIC LI NE FOR GIVING ELECTRIC SUPPLY TO THE PREMISES SPECIFIED IN SUB-SE CTION (1): PROVIDED THAT NO PERSON SHALL BE ENTITLED TO DEMAND , OR TO CONTINUE TO RECEIVE, FROM A LICENSEE A SUPPLY OF EL ECTRICITY FOR ANY PREMISES HAVING A SEPARATE SUPPLY UNLESS HE HAS AGREED WITH THE LICENSEE TO PAY TO HIM SUCH PRICE AS DETER MINED BY THE APPROPRIATE COMMISSION. (3) IF A DISTRIBUTION LICENSEE FAILS TO SUPPLY THE ELECTRICITY WITHIN THE PERIOD SPECIFIED IN SUB-SECTION (1), HE SHALL BE LIABLE TO A PENALTY WHICH MAY EXTEND TO ONE THOUSAND RUPEES FOR EACH DAY OF DEFAULT. 38. SECTION 46 OF THE ELECTRICITY ACT READS AS UNDE R : 46. POWER TO RECOVER EXPENDITURE.THE STATE COMMI SSION MAY, BY REGULATIONS, AUTHORISE A DISTRIBUTION LICENSEE TO C HARGE FROM A PERSON REQUIRING A SUPPLY OF ELECTRICITY IN PURSUANCE OF SECTION 43 ANY EXPENSES REASONABLY INCURRED IN PROVIDING ANY ELEC TRIC LINE OR ELECTRICAL PLANT USED FOR THE PURPOSE OF GIVING THAT SUPPLY. 39. UNDER THE PROVISIONS OF SECTION 43 OF THE ELECT RICITY ACT ANY PERSON WHO IS OWNER OR OCCUPIER OF ANY PREMISES IS EMPOWERED TO MAKE AN APPLICATION TO THE DISTRIBUTOR LICENSEE TO GIVE SUPPLY OF ELECTRICITY TO SUCH PREMISES. IT IS THE DUTY OF TH E DISTRIBUTOR LICENSEE TO PROVIDE SUCH SUPPLY OF ELECTRICITY WITHIN ONE MO NTH AFTER RECEIPT OF THE APPLICATION REQUIRING SUCH SUPPLY. AS PER THE PROVISO TO SECTION 43 OF THE ELECTRICITY ACT, IN CASE WHERE THE SUPPLY TO BE PROVIDED TO THE CONSUMER REQUIRES EXTENSION OF DISTRIBUTION MA INS OR COMMISSIONING OF NEW SUB-STATION, THE DISTRIBUTION LICENSEE SHALL SUPPLY THE ELECTRICITY TO SUCH PREMISES IMMEDIATELY AFTER SUCH EXTENSION OR COMMISSIONING OR WITHIN SUCH PERIOD AS MAY BE SPECIFIED AND AFTER COMMISSIONING OF NEW STATION, THE ELECTRI CITY IS TO BE SUPPLIED AFTER SUCH EXTENSION OR COMMISSION. THE EXPLANATION UNDER SECTION 43(1) LAYS DOWN THAT THE APPLICATION REFERR ED UNDER THE SUB- SECTION IS TO BE COMPLETED IN ALL RESPECTS IN THE A PPROPRIATE FORM AS REQUIRED BY THE DISTRIBUTING LICENSEE ALONGWITH DOC UMENTS SHOWING 15 PAYMENT OF NECESSARY CHARGES AND OTHER COMPLIANCES. UNDER THE PROVISIONS OF SECTION 43(2) OF THE ACT IT IS THE DU TY OF EVERY DISTRIBUTOR LICENSEE TO PROVIDE ELECTRIC PLANT OR E LECTRIC LINES FOR MAKING ELECTRIC SUPPLY TO THE PREMISES WHEREVER REQ UIRED BUT SUCH PROVISIONS OF THE SERVICE ARE SUBJECT TO PAYMENT TO SUCH PRICES AS MAY BE DETERMINED IN THE CASE, BY THE LICENSEE. FOR FA ILURE TO SUPPLY THE ELECTRICITY WITHIN THE SPECIFIED PERIOD THE LICENSE E SHALL BE LIABLE TO PENALTY OF RS.1000/- EACH DAY OF DEFAULT. 40. UNDER SECTION 46 OF THE ELECTRICITY ACT THE DIS TRIBUTOR LICENSEE IS AUTHORIZED TO CHARGE ANY EXPENSES INCURRED IN PROVI DING ANY ELECTRIC PLANT OR ELECTRIC LINE FOR THE PURPOSE OF GIVING SU PPLY TO THE SAID PERSON SUBJECT TO THE EXPENSES BEING REIMBURSED BY SUCH PERSON REQUIRING ELECTRIC SUPPLY. 41. THE INDIAN ELECTRICITY RULES 1956 FORMULATE THE DRAFT CONDITIONS OF SUPPLY. AS PER RULE 2 THE APPLICATION OF AN AGREEM ENT FOR SUPPLY OF ELECTRIC ENERGY IS TO BE MADE IN THE FORM ATTACHED THERETO AND IS TO BE SIGNED BY THE OWNER OR OCCUPIER OF THE PREMISES FOR WHICH SUPPLY IS REQUIRED. AS PER RULE 4, UPON RECEIPT OF THE REQUI SITION FOR SUPPLY NOTICE FOR FIXING THE POINT OF ENTRY OF SUPPLY MAIN S AND THE POSITION OF THE MAINS, CUT-OUTS OR CIRCUIT BREAKERS OF THE METE RS IS TO BE GIVEN. IT IS STIPULATED THAT THE LICENSEE SHALL INSPECT THE P REMISES FOR THE SAID PURPOSE. UNDER RULE 5, ONCE THE POSITION FOR THE S ERVICE BEING PROVIDED HAS BEEN AGREED UPON, THE LICENSEE SHALL T HEREAFTER SUBMIT TO THE APPLICANT QUOTATION OF THE ESTIMATE OF CARRYING OUT SUCH WORK. ON ACCEPTANCE OF THE QUOTATION, THE APPLICANT HAS TO D EPOSIT THE ESTIMATED AMOUNT OF SERVICES TO BE PROVIDED AND ONC E THE SAID AMOUNT SO DEPOSITED, ORDERS ARE TO BE ISSUED FOR EXECUTING THE WORK. IT IS STIPULATED UNDER RULE 5 THAT THE SERVICE LINE NOTWI THSTANDING THE FACT THAT PORTION OF THE COST HAS BEEN PAID BY THE CONSU MER, SHALL REMAIN THE PROPERTY OF THE LINCESEE BY WHOM IT IS TO BE MA INTAINED. RULE 5 READS AS UNDER : 5. QUOTATIONS, ETC., FOR LAYINGSERVICE LINES. (A) THE POSITION FOR THE SERVICE HAVING BEEN AGREED UPON AS PROVIDED FOR IN CONDITION NO,. 4 ABOVE, THE LICENSEE SHALL T HEREAFTER SUBMIT TO THE APPLICANT A QUOTATION OF THE ESTIMATE _OF THE COST OF CARRYING OUT THE WORK. THE QUOTATION HAVING BEEN ACCEPTED, THE APPLICANT SHALL BE REQUIRED TO DEPOSIT THE AMO UNT OF THE ESTIMATE WITH THE LICENSEE BEFORE THE SERVICE IS LA ID. THE DEPOSIT HAVING BEEN DULY PAID, ORDERS SHALL BE ISSUED FOR T HE WORK TO BE PUT IN HAND AND THE AMOUNT SO DEPOSITED SHALL BE SU BSEQUENTLY ADJUSTED, IF NECESSARY, OR COMPILATION OF THE FIGUR ES OF THE ACTUAL COST OF THE SERVICE LINE. OTHER CONDITIONS B EING EQUAL, SERVICE LINES SHALL AS FAR AS POSSIBLE BE LAID IN T HE ORDER OF THE DATES OR RECEIPT OF THE DEPOSIT MONEY. NOTE.THE SERVICE LINE, NOTWITHSTANDING THAT A PORT ION OF THE COST HAS BEEN PAID FOR BY THE CONSUMER, SHALL REMAI N THE PROPERTY OF THE LICENSEE BY WHOM IT IS TO BE MAINTAINED. 42. AS PER RULE 6, THE LICENSEE SHALL LAY 30 METERS OF SERVICE LINE FROM HIS NEAREST DISTRIBUTION MAIN OUTSIDE THE LIMITS OF THE PROPERTY, FREE OF CHARGE AND ANY LENGTH IN EXCESS O F 30 METERS AND WHOLE OF THE SERVICE LINE WITHIN THE LIMIT OF PROPE RTY, SHALL BE PAID BY THE APPLICANT. RULE 6 FURTHER PROVIDES THAT THE COST WOULD BE 16 EXCLUSIVE OF THE PROPORTIONATE COST OF FIRST POLE A ND FITTINGS BEYOND 30 METERS. AS PER RULE 7, THE METER BOARDS, MAIN C UT-OUTS ETC. ARE BE HANDLED OR REMOVED BY ONLY THE EMPLOYEES OF THE LICENSEE AND LICENSEES APPARATUS MUST NOT BE BROKEN. ALL TRAN SFORMERS, SWITCH GEARS AND OTHER ELECTRICAL EQUIPMENT BELONGING TO T HE CONSUMER AND CONNECTED TO THE MAINS OF THE LICENSEE SHALL BE MAINTAINED TO THE REASONABLE SATISFACTION OF THE LICENSEE. IN CA SE OF HIGH VOLTAGE CONSUMERS, SUITABLE PROTECTIVE DEVICES APPROVED BY THE LICENSEE SHALL BE USED SO AS TO AFFORD FULL PROTECTION TO TH E LICENSEES APPARATUS PLACED ON THE CONSUMERS PREMISES. 9. THE TRIBUNAL VIDE PARAS 43 TO 46 HELD AS UNDER : 43 . CONSIDERING HE PROVISIONS OF THE ELECTRICITY ACT, I T POSTULATES THAT IT IS DUTY OF THE DISTRIBUTION LICE NSEE TO DEVELOP AND MAINTAIN AN EFFICIENT COORDINATE DISTRI BUTION SYSTEM IN ITS AREA OF SUPPLY. THE SUPPLY OF ELECTR ICITY IS TO BE MADE BY SUCH DISTRIBUTION LICENSEE IN ACCORDANCE WITH THE PROVISIONS OF THE ELECTRICITY ACT. WHERE ANY PERSO N WHOSE PREMISES ARE SITUATED WITHIN THE AREA OF SUPPLY OF THE DISTRIBUTION LICENSEE, AND IT REQUIRES SUPPLY OF EL ECTRICITY TO ITS PREMISES, IS TO APPLY FOR SUCH SUPPLY OF ELECTR ICITY AND IT IS THE DUTY OF THE DISTRIBUTION LICENSEE TO PROVIDE THE ELECTRICITY TO THE PREMISES OF THE CONSUMER WHO HAS MADE AN APPLICATION FOR SUCH SUPPLY OF ELECTRICITY TO ITS P REMISES. GENERALLY, THE DISTRIBUTION LICENSEE MAINTAIN AN EF FICIENT, COORDINATED AND ECONOMICAL SYSTEM ON ITS NETWORK IN THE AREA OF ITS SUPPLY HOWEVER, IN SOME AREAS, THERE IS A R EQUIREMENT FOR EXTENSION OF DISTRIBUTION MAINS OR COMMISSIONIN G OF NEW SUB-STATION, IT IS THE DUTY OF THE DISTRIBUTION LIC ENSEE TO DEVELOP SUCH INFRASTRUCTURE AND THEREAFTER PROVIDE ELECTRICITY TO THE PREMISES. REFERENCE IS MADE TO THE PROVISIO NS OF SECTION 43 OF THE ELECTRICITY ACT IN THIS REGARD. THE SAID SECTION FURTHER PROVIDES THE MANNER OF MAKING AN AP PLICATION FOR PROVIDING ELECTRICITY COMPLETE WITH PAYMENT OF NECESSARY CHARGES. UNDER SECTION 46 OF THE ELECTRICITY ACT I T IS PROVIDED THAT THE DISTRIBUTION LICENSEE IS AUTHORIZ ED TO CHARGE FROM A PERSON REQUIRING SUPPLY OF ELECTRICIT Y, IN PURSUANT TO SECTION 43 OF THE ACT, SUCH CHARGES WHI CH MAY BE INCURRED IN PROVIDING ANY ELECTRIC LINE OR ELECTRIC PLANT, USED FOR THE PURPOSE OF GIVING SUPPLY. THE PROCESS OF G IVING SUPPLY TO SUCH PREMISES WHICH ARE NOT CONNECTED TO THE SUPPLY LINES OF THE DISTRIBUTION LICENSEE, BUT ARE WITHIN THE AREA OF OPERATION OF SUCH DISTRIBUTION LICENSEE, IS AS PER RULE 27 OF THE INDIAN ELECTRICITY RULES. ON THE REEIPT OF NOTICE FROM THE INTENDED CONSUMER FOR THE REQUISITE SUPPLY TO ITS PREMISES, THE REPRESENTATIVES OF THE LICENSEE ARE T O INSPECT THE PREMISES AND FIX THE POINT OF ENTRY OF SUPPLY M AINS AND ALSO THE POSITION OF THE MAINS, CUT-OUTS, METERS, S UPPLY LINES, ETC. THEREAFTER, QUOTATION HAVE TO BE GIVEN TO THE APPLICANT OF THE ESTIMATED COST OF CARRYING OUT THE WORK. AF TER THE MONEY IS DEPOSITED BY THE CONSUMER, THE WORK SHALL BE CARRIED OUT FOR INITIATING THE PROCESS OF PROVIDING THE INFRASTRUCTURE FOR THE SUPPLY OF ELECTRICITY. SUCH PROCESS OF 17 PROVIDING ELECTRICITY TO THE PREMISES OF THE CONSUM ER, THOUGH IS CARRIED OUT AT THE REQUEST OF THE CONSUMER BUT I S IN FACT IS THE DUTY OF THE DISTRIBUTION LICENSEE TO PROVIDE TH E BASIC AMENITY OF ELECTRICITY TO THE PREMISES OF THE ASSES SEE. 44. IN THE FACTS OF THE PRESENT CASE AND AS BROUGHT BY US IN THE PARAS HEREINABOVE, WHEREIN THE COMMUNICATION BE TWEEN THE ASSESSEE AND UPSEB, I.E. ONE OF THE DISTRIBUTIO N LICENSEE HAS BEEN REFERRED TO, CLEARLY ESTABLISHED THE CASE OF THE ASSESSEE THAT IT HAS NOT AWARDED ANY WORKS CONTRACT TO THE SEBS. THE COMPLETE EXERCISE IN THE CASE HAS BEEN C ARRIED OUT FOR THE PURPOSE OF SANCTION OF LOAD FOR RAILWAY TRA CTION SUB- STATION TO BE OPERATED ON AMBALA-MORADABAD SECTION. THE TRACTION SUB-STATION AT DIFFERENT POINTS I.E. KANTH AND NAJIBABAD ARE THE PROPERTY OF THE ASSESSEE BEFORE U S AND THE DISTRIBUTION LICENSEE I.E. UPSEB WAS ASKED TO ENER GIZE THE SAME BY PROVIDING THE ELECTRIC SUPPLY TILL THE SAME TRACTION SUB-STATION AND THEREAFTER FROM THE TRACTION SUB-ST ATION TO THE RAILWAY LINES. THE PROPOSAL MADE BY THE UPSEB WAS THE ESTIMATED COST FOR GIVING SUPPLY TO THE RAILWAY TRA CTION POINTS AT NAJIBABAD AND KANTH, AS IS CLEAR FROM TH E COMMUNICATION REPRODUCED UNDER PARA 23 HEREINABOVE . THE WORK OF SUPPLYING THE CONNECTION TO THE RAILWAY TRA CTION POINT WAS EXECUTED BY THE UPSEB BOARD IN LINE WITH ITS DUTY TO PROVIDE ELECTRICITY TO THE PREMISES OF THE CONSU MER I.E. THE RAIWAY BEFORE US. THE AMOUNT WAS ALSO PAID FOR THE ESTIMATED COST OF SUCH INFRASTRUCTURE BEING PROVIDE D TO THE ASSESSEE. MERELY BECAUSE THE INFRASTRUCTURE HAS BE EN PROVIDED AS PER THE APPLICATION MOVED BY THE ASSESS EE IN LINE WITH THE REQUIREMENT OF THE ASSESSEE DOES NOT ESTAB LISH THE CASE OF THE DEPARTMENT THAT THE SAME TANTAMOUNTS TO WORKS CONTACT. THE ASSESSEE IS A LARGE CONSUMER OF THE E LECTRIC CONNECTION AND THE REQUIREMENT OF THE ASSESSEE BEIN G DISTINCT FROM AN ORDINARY CONSUMER, THE DISTRIBUTION LICENSE E HAD TO PROVIDE THE INFRASTRUCTURE IN LINE THEREOF. SUCH P ROVISION OF INFRASTRUCTURE BY THE DISTRIBUTION LICENSEE WAS IN DISCHARGE OF ITS DUTY OF PROVIDING ELECTRICITY TO THE PREMISE S OF THE CONSUMER. THE SUB-STATION AND THE ELECTRIC LINES E STABLISHED BY THE DISTRIBUTION LICENSEE REMAINED ITS PROPERTY AND EVEN THE INFRASTRUCTURE IS PROVIDED NOT ON THE LAND OF T HE ASSESSEE BUT ON THE LAND OF THE DISTRIBUTION LICENSEE. IN T HE TOTAL INFRASTRUCTURE ONLY THE TRACTION SUB-STATION ARE TH E PROPERTY OF THE ASSESSEE. THE COST OF THE INFRASTRUCTURE HA S BEEN BORNE BY THE ASSESSEE AS THERE WERE NO EXISTING SUB -STATION OF THE DISTRIBUTION LICENSEE IN THE SAID AREA. THE EX PENDITURE THEREOF HAS BEEN INCURRED BY THE ASSESSEE FOR PROVI SION OF THE ELECTRICITY CONNECTION IN LINE WITH THE PROVISIONS OF THE ELECTRICITY ACT. THERE IS NO ORAL OR WRITTEN AGREE MENT BETWEEN THE ASSESSEE AND THE DISTRIBUTION LICENSEE FOR THE SAID PURPOSE EXCEPT THE APPLICATION MADE BY THE ASS ESSEE, THE ESTIMATE THEREOF BY THE DISTRIBUTION LICENSEE AND T HE PAYMENT OF THE ESTIMATED CHARGES. WE FIND NO MERIT IN THE OBSERVATIONS OF THE CIT (APPEALS) IN THIS REGARD TH AT THE ABOVE SAID REPRESENTS A CONTRACT BETWEEN THE PARTIE S. IN THE ENTIRETY OF THE FACTS AND CIRCUMSTANCES OF THE CASE WE HOLD THAT THE ASSESSEE WAS NOT LIABLE TO DEDUCT TDS OUT OF THE AMOUNTS PAID TO THE DISTRIBUTION LICENSEE FOR PROVI DING THE 18 INFRASTRUCTURE FOR PROVIDING ELECTRICITY TO THE RAI LWAY TRACTION SUB-STATION OF THE ASSESSEE. ACCORDINGLY, WE DIRECT THE ASSESSING OFFICER TO DELETE THE DEMAND RAISED U /S 201(1) AND INTEREST CHARGED U/S 201(1A) OF THE ACT. 45. THE LD. AR FOR THE ASSESSEE HAD MADE ELABORATE SUBMISSIONS IN RESPECT OF THE STATUS OF THE DISTRI BUTION LICENSEE AND THE ASSESSEE WHICH ARE NOT BEING DELIB ERATED UPON IN VIEW OF OUR DECISION IN PARAS HEREINABOVE. THE GROUND NOS.1 TO 6 ARE PARTLY ALLOWED. 46. FURTHER THE ASSESSEE HAD RAISED ADDITIONAL GROU NDS OF APPEAL. THE ADDITIONAL GROUND OF APPEAL RAISED BY THE ASSESSEE IS IN CONNECTION WITH THE LIMITATION OF PA SSING THE PRESENT ORDER BY THE ASSESSING OFFICER. THE DISCRE PANCIES WERE NOTED BY THE ASSESSING OFFICER AFTER SURVEY AT THE PREMISES OF THE ASSESSEE ON 31.1.2008 AND THE ORDER PASSED BY THE ASSESSING OFFICER DATED 12.2.2009 IS WITHIN REASONABLE TIME AND CANNOT BE SAID TO BE PASSED BEYOND THE PER IOD OF LIMITATION. THE ADDITIONAL GROUND NO.1 RAISED BY T HE ASSESSEE IS THUS DISMISSED. 10. THE ISSUE RAISED IN THE PRESENT SET OF APPEALS IS IDENTICAL TO THE ISSUE BEFORE THE TRIBUNAL IN EARLIER YEARS AND FOLL OWING THE SAME PARITY OF REASONING, WE UPHOLD THE ORDER OF CIT(APP EALS) IN DELETING THE DEMAND RAISED UNDER SECTION 201(1) OF THE ACT A ND INTEREST CHARGED UNDER SECTION 201(1A) OF THE ACT. 11. IN THE RESULT, APPEALS OF THE REVENUE ARE DISMI SSED. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND NOVEMBER,2013. SD/- SD/- ( T.R.SOOD) (SUSHMA C HOWLA) ACCOUNTANT MEMBER JUDICIA L MEMBER DATED: 22 ND NOVEMBER, 2013 POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR ITAT,CHD.