IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL EASTERN ZONAL BENCH: KOLKATA REGIONAL BENCH – COURT NO. 1 Service Tax Appeal No. 75939 of 2021 (Arising out of Order-in-Original No. PR.COMMR/BBSR/ST/30/2021 dated 13.09.2021 passed by the Principal Commissioner, C.G.S.T. & Central Excise, Bhubaneshwar, C.R. Building, Rajaswa Vihar, Bhubaneswar – 751 007, Odisha)

M/s. NESCO Utility : Appellant A.T./P.O.: Januganj, Balasore, Odisha – 756 019 VERSUS Principal Commissioner, G.S.T. and C.Ex., : Respondent Bhubaneswar Commissionerate, C.R. Building, Rajaswa Vihar, Bhubaneswar, Odisha – 751 007 APPEARANCE:

Shri Niranjan Swain, Advocate, For the Appellant Ms. Suman, Authorized Representative, for the Respondent CORAM:

HON’BLE SHRI ASHOK JINDAL, MEMBER (JUDICIAL)

HON’BLE SHRI K. ANPAZHAKAN, MEMBER (TECHNICAL)

FINAL ORDER NO. 75284 / 2026 DATE OF HEARING / DECISION: 24.02.2026 ORDER: [PER SHRI ASHOK JINDAL The appellant is in appeal against the impugned order wherein the demand of central excise duty amounting to Rs.25,33,67,733/- (inclusive of cess), along with interest and penalties thereon, has been confirmed against the appellant.

2. The facts of the case are that M/s. NESCO Utility (appellant / DISCOM for short) is a wholly owned undertakings of the Government of Odisha by virtue of holding 100% share capital and licensees under section 14 of Electricity Act 2003, engaged in the distribution of electricity in the licensed area of the State. The activities of the appellant are regulated and controlled by the Odisha State Electricity Regulation Commissions (OERC) and Central Regulatory Commission established both at Central and State levels under the Electricity Regulation Commissions Act, 1998.

3. All the receipts from the activities of supply of electricity whether ancillary or incidental collected from the consumers of electricity as per tariff fixed by the OERC are accounted in the books of accounts in compliance to the General Accepted Accounting Principles and provisions of Companies Act 2013 & Rules made there under. These power charges have been collected by the DISCOMs for the relevant years of dispute i.e 2014-15 to 2017-18 (up to June 2017) under Section 62 & 63 and other applied provisions of Electricity Act 2003 read with relevant provisions of OERC (Terms and Conditions for determination of Wheeling and Retail Supply Tariff) Regulations, 2014 and OERC (Conduct of Business) Regulations, 2004 and another Tariff related matters.

4. The Directorate General of Goods and Services Tax Intelligence (DGGI), Bhubaneswar Zonal Unit issued a Show Cause dated 19.09.2019 for the period 2014-15 to 2017-18 (up to June 2017) demanding Service Tax amounting to Rs.26,59,85,498/-, along with interest and penalties, by invoking extended period of limitation under proviso to Section 73 of the Finance Act 1994 on the allegation of wilful fraud, wilful mis-statement and suppression of facts to evade payment of tax. The demand of service tax was quantified by taking consolidated figures appeared in the audited financial statements without further analysis and determining the service tax receipt wise. 4.1. The appellant made their detailed submissions along with bifurcated receipt wise figures, along with the documentary evidence, statutory provisions and cited relevant case laws to protect its interest.

5. Thereafter, the matter was adjudicated and by way of the impugned order dated 13.09.2021, the demand of Service Tax to the extent of Rs.25,33,67,733/- was confirmed, along with interest. The ld. adjudicating authority also imposed penalties on the appellant under Sections 77(2) and 78 of the Act.

5.1. Against the said order, the appellant is before us.

6. The Ld. Counsel appearing on behalf of the appellant submits that their case is squarely covered by the decision of this Tribunal in the case of M/s. Wesco Utility & ors. v. Commissioner of C.G.S.T. & Excise, Rourkela [Final Order Nos. 77589-77592 of 2025 dated 28.10.2025 in Service Tax Appea