Electricity transmission and distribution services fall under the exemption notification, defeating the service tax demand.

Services connected with erection, commissioning and installation for electricity transmission and distribution were treated as falling within Notification No. 45/2010-S.T. dated 20.07.2010, making the service tax demand unsustainable. The Tribunal noted that the exemption had already been accepted in a series of prior cases in favour of service providers, and the departmental concession on applicability of the notification to the relevant services and period reinforced that view. On that basis, the tax demand was set aside and the departmental appeal failed.

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Issues: Whether services relating to transmission and distribution of electricity were covered by Notification No. 45/2010-S.T. dated 20.07.2010 so as to render the service tax demand unsustainable.

Analysis: The dispute concerned erection, commissioning and installation activities undertaken for electricity distribution infrastructure. The exemption notification was applied to taxable services relating to transmission and distribution of electricity, and the Tribunal noted that the issue had already been decided in a series of cases in favour of service providers. The concession recorded on behalf of the department further supported the applicability of the notification to the relevant services and period.

Conclusion: The demand under the service tax category was not sustainable and the departmental appeal failed.

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